Operator Taxation - Paraguay

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1) Framework: national taxes + industry canons

The load on gambling operators in Paraguay consists of two "layers":

1. General taxes (valid for any business): corporate IRE, IVA and IDU distributed income tax. These regimes are enshrined in the Ley 6380/2019 reform and departmental DNIT clarifications.

2. Industry canons (royalties): concession/authorization payments, which are established by CONAJZAR and administered by DNIT; after the reform of Ley 7438/2025 and Decreto 3846/2025, the rules are modernized.

2) Corporate income tax (IRE)

What it is: a tax on entrepreneurial returns (replaced old regimes).

Rate: 10% of tax profit (annuity netta). This directly follows from the text of Ley 6380 and clarifications of the organs.

Who pays: legal entities/individual entrepreneurs operating in Paraguay, including gambling operators.

3) VAT (IVA) for operator services

Facility: provision of services, including operator/process.

Base rate: 10% on most transactions (unless there is a separate benefit). Rates and rates - in Ley 6380 and on the DNIT IVA portal.

💡 Practice: the specific taxation of "game revenue" (GGR) on IVA may depend on the design of the contract/cash flow and the current DNIT criteria; the structure of the invoice and document flow should be built for a specific plegio/regulation.

4) Dividend and profit tax (IDU)

When it arises: when distributing dividends/profits.

Rates: 8% for residents and 15% for non-residents (including payments to parent companies abroad). The deduction is made by the company itself upon payment.

5) Canons (royalties) under concession/license CONAJZAR

Essence: payment for the right to operate a specific type of games - under the terms of pliegos (tender documentation). Since 2025, payments of canons are administered by DNIT, conditions and calculations are formulated by CONAJZAR; if the canon is set as a% of revenue/profit, the law obliges an external audience (audit) according to the DNIT registry.

Example in sports betting: in the 2022 competition, the winner of Apostala (Daruma SAM) offered 22% of the canon (in competition with 23% and 27%). This is indicative of the order of magnitude of industry "royalty" on GGR and the importance of reading plegs.

💡 Important: the rates and formulas of the canons differ in verticals and are fixed in specific plegs/resolutions; Use only the current documents for your item/product.

6) 8% deduction from cash prizes (operator duty)

Separately from the corporate load, the operator acts as a tax agent for IRP (personal income tax) for cash prizes:

Retention rate: 8% of the cash prize amount;
Basis: Decreto 4661/2020 (retention regulation) + DNIT clarifications and consultation linked to Ley 6380/2019.

7) What Ley 7438/2025 and Decreto 3846/2025 changed (for taxes and payments)

Institutionally: game regulation is conducted by CONAJZAR as a body in the DNIT circuit; canons are paid to DNIT according to the conditions established by the regulator.

Procedurally: for new modalities, temporary permission with subsequent mandatory public concession is allowed; with canons dependent on revenue/profit, an external audience is required. This is recorded in industry legal clarifications for Decreto 3846/2025.

8) Quick tax compliance checklist for operator (2025)

1. Registration and modes: register with DNIT for IRE and IVA, check activity codes and electronic document flow.

2. Product Canon: Explore the current pliego/CONAJZAR resolution for your vertical; set up the calculation and payment of the canon in DNIT; if% of GGR - to establish external audit.

3. Dividends: plan payments taking into account IDU 8 %/15% and contractual flows for non-residents.

4. Prizes to players: implement a procedure for withholding 8% IRP from cash winnings and correct processing of compromantes de retención.

5. Update control: monitor the Marco Jurídico (DNIT/CONAJZAR) block for changes in the rates/formulas of the canon and regulations.

For Paraguayan gambling operators, the basic "basket" looks like this: IRE 10% for profit, IVA under the general rules for services, IDU when distributing dividends (8% to residents/15% to non-residents), concession canons (under CONAJZAR; administers DNIT), plus the obligation to withhold 8% from players' cash prizes. After the reform of Ley 7438/2025 and Decreto 3846/2025, the key became: pay canons in DNIT on CONAJZAR terms and provide an external audience if the canon is considered from revenue/profit. For a correct model, consider expenses/income after canon and taxes, strictly according to the current plegs and DNIT guidelines.