Country Trading Profiles Peru - Taxes

Tax Rates

Nature of the tax: Value added tax (VAT).
Tax rate: VAT standard rate is 18%.
Reduced tax rate: There is a reduced VAT rate of 2% for certain products and some exemptions (0%) for foodstuffs, urban passenger transport, the international transport of cargo, life assurance polices, some financial products, books, construction and maintenance of ships.
Other consumption taxes: Peru has established a consumption tax, "Impuesto Selectivo al Consumo", for the sale and import of goods such as cigarettes (125%), alcoholic drinks (20%); sparkling and mineral water, luxury items, fuel (fixed sum), gambling and betting.

Corporate tax rate

30%

Capital gains taxation: Capital gains are generally included as income and taxed at the normal coporate rate.
Main allowable deductions and tax credit: Deductions are possible for: interest on loans, insurance premiums, leases of aircraft and ships, maritime freight, and fees for passing through the Panama channel; depreciation; loss; payment of royalties to no nondomiciled affiliates; some taxes; start-up costs; employee's retributions and health insurance premiums; vehicle expenses.
Other corporate taxes: Municipal authorities tax real estate, social security, transfer of real estate, temporary Tax on net Assets.

Individuals income tax	Progressive rate which is made according to a system of annual units. One unit is equal to PEN 3,100.
0 to 27 units	15%
27 to 54 units	21%
Beyond 54 units	30%

Allowable deductions and tax credit: The taxpayers benefit from various deductions according to the nature of their income (salary, pension, etc.). For example, the employees of a company benefit from tax relief of 20%.
Special expatriate tax regime: No special expatriate tax regime.

Countries with whom a double taxation treaty have been signed: See the list of the conventions signed
Withholding taxes: Dividends: 4.1%, Interests: 4.99%/30%, Royalties: 30%
Bilateral agreement

Tax year: The fiscal year begins on 1 January and ends on 31 December of the same year.
Accounting standards: IAS, IFRS
Accounting regulation bodies: CPN
CCPL
Accounting reports: As the structure of accounts is inspired by various models, it is difficult to establish a precise plan of their presentation. Nevertheless, companies have to publish a balance sheet, a profit and loss account and annexes which should be guaranteed by an independent auditor.
Publication requirements: Accounting must be kept in accordance with current standards and financial statements must be prepared annually.
Professional accountancy bodies: CPN
Certification and auditing: The certification of accounts became compulsory in Peru in 1974, with the creation of the "Comision Nacional de Empresas y Valores". Annual audits by independent public accountants are mandatory in certain circumstances (when the corporation qualifies as a public corporation, when established by special legislation, etc.).
Several companies certified by the Technical Regulation Commission of INDECOPI are authorized to issue a certificate of conformity with Peruvian standards. These companies are the following: INASA, SGS del Peru, BSI Inspectorate Peru, EQUAS S.A. and SG Nortek.
You can contact an external auditor: Deloitte, KPMG, Ernst & Young, PricewaterhouseCoopers.
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