D. Other significant taxes
The following table summarizes other significant taxes.
Nature of tax
Value-added tax; imposed on goods sold, including imports, and services rendered in Paraguay; exports are exempt Standard rate 10
Basic consumer food items, pharmaceutical products, and the leasing of residential housing and sale of real estate 5
Excise tax on certain manufactured and imported goods, such as cigarettes, liquor and petroleum products, among others 1 to
Social security contributions for nonbank institutions, on payroll; paid by
E. Foreign-exchange controls
The central bank does not control the foreign-exchange market. A free-market rate of exchange prevails.
F. Tax
treaties
Paraguay has entered into double tax treaties with Chile, Qatar, Taiwan, the United Arab Emirates and Uruguay. It has also entered into a tax treaty on international freight with Argentina and tax treaties on international air freight with Belgium and Germany.