WorldTax CompareAll Comparisons

Paraguay vs Malawi
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇵🇾 Paraguay
vs
🇲🇼 Malawi
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
8–10%
10% top; competitive positioning
No change
0–35%
35% top; IMF program conditions
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
16.5%
16.5% VAT maintained
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
30%
30%; mining sector developing
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
30%
30% CGT maintained
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~10%
MASM; pension coverage expanding
No change
State, Regional & Local Taxes

🇵🇾 ParaguayMunicipal & Departmental Taxes

Paraguay's 17 departments and 254 municipalities levy the Impuesto Inmobiliario (property tax at 1% of assessed value), commercial licence fees (patente comercial), and vehicle registration fees. Asunción has the highest commercial licence fees. The Subsecretaría de Estado de Tributación (SET) administers national taxes. Paraguay has one of Latin America's lowest tax burdens (~12% of GDP) and has used flat low rates to attract foreign residents (MADES visa) and financial activity. No wealth tax exists.

🇲🇼 MalawiDistrict & City Councils

Malawi's 28 district councils and city/town assemblies levy property rates, trading licences, and local service charges. The Malawi Revenue Authority (MRA) administers national taxes. Malawi is landlocked and one of the world's poorest countries — highly dependent on tobacco exports (declining due to health campaigns), tea, and sugar, plus significant international aid. An IMF Extended Credit Facility has been supporting fiscal consolidation. The kwacha has experienced significant depreciation, complicating tax bracket real values over time.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Paraguay vs Malawi: Key Tax Differences (2026)

💰 Income Tax: 🇲🇼 Malawi has a higher top income tax rate (8–10% vs 0–35%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Malawi has a higher consumption tax (10% vs 16.5%).

🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 30%), benefiting investors.

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All 🇵🇾 Paraguay comparisons →All 🇲🇼 Malawi comparisons →