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Tax strategy

Tax strategy and risk prevention in Paraguay

We organize your company's tax position before DNIT (Paraguay's tax authority), identify contingencies and build an action plan with clear priorities.

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The approach

Plan in advance instead of explaining afterwards

Most of the tax problems we see in Paraguay do not come from an aggressive decision: they come from a lack of review. Invoices that do not support what was deducted, a tax regime chosen years ago that no longer matches the company's current size, balances that were never reconciled, profit withdrawals made without considering IDU (the tax on dividends and profits), or payments abroad made without analyzing INR (non-resident income tax).

A serious tax strategy starts by knowing exactly where the company stands: which taxes apply to it under Law 6380/2019 (Ley 6380/2019), which IRE (corporate income tax) regime it is registered under, which contingencies it carries over from prior periods, and which upcoming decisions — an investment, a profit distribution, opening a branch, bringing in a new partner — will have a tax impact.

With that map we build an action plan with priorities: what must be corrected now, what can wait until the next closing and what requires a decision from the owner. We do not promise the absence of audits or adjustments — nobody can promise that. We work so that, if they come, the company is in a position to respond with documentation and sound reasoning.

What we review

What the tax diagnostic covers

  • ✓ The company's current tax position and the IRE (corporate income tax) regime it is registered under.
  • ✓ Contingencies in open periods and the consistency of returns already filed with DNIT.
  • ✓ Supporting documentation for costs, expenses and IVA (VAT) input credits.
  • ✓ Consistency between accounting records, bank transactions and electronic invoicing (SIFEN).
  • ✓ Treatment of withdrawals, dividends and profits (IDU) and of payments abroad (INR).
  • ✓ Planning of obligations and filing deadlines for the following fiscal year.
  • ✓ Legal alternatives applicable to your specific case, with their estimated impact.
Deliverables

What you receive when the diagnostic is complete

Executive report

A clear summary of the situation, written so management can understand it — not just an accountant.

Risk and priority map

Which contingencies exist, what their estimated exposure is and in what order they should be addressed.

Concrete recommendations

Alternatives that apply to your case, with what each one implies in terms of work and impact.

Implementation roadmap

Steps, owners and sequence to put the plan into action without disrupting the operation.

Frequently asked questions

About tax strategy and risk protection

In everyday use, "shielding" refers to organizing the corporate structure, the documentation and tax compliance in order to reduce avoidable risks: choosing the right legal structure and IRE (corporate income tax) regime, keeping the books up to date, separating personal assets from company assets, supporting every deduction and filing correctly and on time before DNIT (Paraguay's tax authority). No serious firm can promise immunity from tax audits or eliminate risk entirely: what can be done is to work preventively and meticulously to minimize unnecessary exposure.
No. The diagnostic is a one-off review and planning engagement with its own deliverables. Monthly accounting is a separate, ongoing service. Many companies start with the diagnostic to understand where they stand and then decide whether to also move their monthly accounting to us.
It depends on the volume of information, the number of periods to review and how readily available the documentation is. A company with organized records and complete digital files moves much faster than one that has to rebuild its supporting documentation. When we assess your case we give you a concrete timeline before starting.
Yes, and that is usually the best moment. Defining the legal structure, the correct tax regime, how expenses will be documented and how profits will be withdrawn — all from the outset — avoids having to correct things years later, when correcting costs far more.

See all frequently asked questions about taxes and companies in Paraguay →

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Let's get your company's tax position in order

We start with a conversation about your current operation.

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