Starting September 1, 2026, the interest rate on tax installment agreements administered by DNIT, Paraguay’s tax authority, will be reduced from 1.5% to 1.4% per month.
The measure was established by the Executive Branch through Decree No. 6,478/2026, issued by the Ministry of Economy and Finance. DNIT said the new rate will apply to all installment agreements granted from the start of the rule’s effective period.
The decree sets the rate for taxes administered by the General Directorate of Internal Taxes (GGII), a DNIT unit responsible for managing domestic taxes. The rule allows outstanding tax obligations to be paid in installments authorized by the tax administration, with interest of 1.4% per month on the financed balance.
The rate remains below the additional charge for tax arrears, set at 1.5% per month for overdue tax obligations. This limit is related to Law No. 125/1991, which establishes Paraguay’s tax system and covers income and consumption taxes—including VAT—as well as tax procedures.
In its justification, the Executive Branch said the update seeks to adapt the rate to prevailing economic conditions and balance debt-regularization mechanisms with the management of public funds. DNIT requested the change after its departments prepared technical and legal reports to update the financial cost of payment agreements.
Decree No. 6,478/2026 will replace Decree No. 5,028/2021 starting September 1, 2026. In practice, taxpayers who obtain new installment agreements after that date will use the 1.4% monthly rate as a reference, while its specific application will depend on the terms of the agreement authorized by the tax administration.