Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Peru
New tax reform: No specific information
New tax treaties: No specific information
Local tax advisors
No specific information on the local tax advisors.
Local tax administration
The definition of Permanent Establishment follows the wording of article 5 of the OECD Model:
- Dependent agent who habitually concludes contracts in the name of a non-resident company (except if the activity is limited to purchase of goods);
- Fixed place of business, building site, construction, assembly or installation and any related supervisory activity.
Resident companies are taxed on their worldwide income. However, non-resident companies are only taxed on their revenues derived from Peruvian-sources.
Entities are considered to be resident for tax purposes in Peru if their place of incorporation is in Peru.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 29.5%.
Note: there is no minimum tax
Non-taxable income includes the following:
- Interest on development loans
Non-deductible expenses includes the following:
- Fines and penalties
- CIT and similar taxes (including foreign withholding taxes)
Carry forward: Yes 4 years, but some restrictions may apply.
Carry back: No
Companies should submit the tax return annually within 3 months after the following year.
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay monthly advance; and the balance must be paid before the first week of April of the following year (in the case where fiscal year coincides with calendar year).
Whithholding Taxes (payment to foreign companies)
The local tax rates in Peru are the following, subject to the provisions of an applicable double tax treaty, if any.
There is a 5% WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 5% of the gross amount.
The general rate of WHT on interest is 30%.
The general rate of WHT on Royalties is 30%.
The general rate of WHT on management fees is 30%.
The general rate of WHT on technical services is 30%; for technical assistance paid abroad the WHT is 15% and 0% in certain cases.
Capital gains are taxed as general income under the regular CIT.
Note: capital gains are exempt.
Standard VAT tax rate is 16%; in addition to the VAT there is a 2% municipal sales tax.
Zero-rated supplies include, subject to certain conditions:
- exports of goods and services ;
Exempt supplies include, subject to certain conditions:
- Certain leases of movable and immovable property;
Note: exempt transactions differ from zero-rated transactions in that the input VAT associated with exempt transactions is not deductible.
There is no refunds of VAT for non-residents companies.
No other specific information of VAT in Peru.
The general statute of limitation is 4 years starting at the end of the year in which the tax return was filed, and 6 years if no tax return.
There is no foreign exchange control in Peru. Income and capital could be freely repatriated.
There are thin capitalization rules in Peru. The interest derived from loans between related parties may not be deductible in case where interest exceeds some ratios (3 times the taxpayer’s net equity).
Do not hesitate to share your experience in Peru with us in the comments below. Any comments are welcome !