Tax laws Peru
Peru's taxation system comprises various taxes, including income tax, value-added tax (VAT), import tax, and excise tax, which collectively constitute a significant portion of the government's revenue.
Corporate Income Tax:
Rate: The general annual corporate income tax rate for resident entities is 29.5%.
Scope: Resident companies are taxed on their worldwide income, while non-resident entities are taxed only on Peruvian-sourced income.
Incentives: Peru offers tax incentives for investments in sectors such as mining, oil and gas, certain agricultural activities, and capital markets.
Personal Income Tax:
Rate: Peru utilizes a progressive income tax system with rates ranging from 8% to 10%.
Scope: Domiciled individuals are taxed on their worldwide income, whereas non-domiciled individuals are taxed only on Peruvian-sourced income.
Value-Added Tax (VAT):
Rate: The standard VAT rate is 18%, comprising a 16% base rate plus a 2% municipal promotion tax.
Application: VAT applies to sales of movable property, provision of services, construction contracts, initial sales of real property (excluding land) by builders, and imports.
Excise Tax:
- Scope: Excise taxes are levied on specific goods such as fuel, cigarettes, beer, liquor, and vehicles.
Financial Transaction Tax:
- Implementation: In 2003, Peru introduced a 0.1% financial transaction tax on all foreign currency-denominated incoming wire transfers to fund the education sector.
Recent Developments:
- Agricultural Sector Growth: In January 2025, Peru's Agriculture Minister announced plans to boost agricultural exports to $40 billion by 2040, with strategies including large-scale irrigation projects and a new agrarian law reducing the income tax rate for the sector from 29.5% to 15%.
Tax Administration:
- Authorities: The National Superintendency of Tax Administration (SUNAT) oversees the collection of national taxes, while municipal taxes are managed by local authorities.
Double Taxation Treaties:
- Agreements: Peru has established treaties to avoid double taxation with countries including Brazil, Chile, Canada, Portugal, South Korea, Switzerland, and Mexico. Negotiations are ongoing with several other nations.
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