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South Korea vs Paraguay
Tax Rate Comparison

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

🇰🇷 South Korea
vs
🇵🇾 Paraguay
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
6–45%
Stable; political debate on top rate reduction
No change
8–10%
10% top; competitive positioning
No change

VAT / GST / Sales Tax

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

Corporate Tax Rate

Corporate Tax Rate
9–24%
Competitiveness discussions vs global peers
No change
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change

Capital Gains Tax

Capital Gains Tax
0–45%
Financial income taxation reform continuing
No change
8–10%
8%/10% maintained
No change

Social Security & Payroll

Social Security / Payroll
~18.5%
Contribution rates stable; pension reform discussion
No change
~25.5%
IPS reform discussions; adequacy concerns
No change
State, Regional & Local Taxes

🇰🇷 South KoreaLocal Income Tax & Resident Tax

South Korea's 17 metropolitan/provincial governments levy local income tax at 10% of national income tax. Property holding tax (Jongbu-se) is a national progressive tax on higher-value properties. Local education taxes and acquisition taxes apply to property transfers. Seoul has higher effective rates due to property values.

🇵🇾 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.

⚠️ 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.

South Korea vs Paraguay: Key Tax Differences (2026)

💰 Income Tax: 🇰🇷 South Korea has a higher top income tax rate (6–45% vs 8–10%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 10%).

🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 45%), benefiting investors.

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