Interview:Humberto Astete How can fiscal policy address economic informality? HUMBERTO ASTETE: The changes in tax policy recently implemented by the government are the most ambitious measures taken in Peru in the last decade. Measures like these are the first steps to take in creating a system that effectively tackles both tax evasion and tax avoidance. As such, it obliges companies to disclose…
The following provides an account of the Peruvian corporate and personal tax laws of most interest to international and local investors. Corporate Entities The various types of corporations that can be utilised by investors for business activities are regulated via the General Corporate Law. Below are the corporation types most commonly established. Joint stock company: A joint stock company…
In conjunction with EY Peru, this chapter explores the taxation system and Peru’s efforts to build an investor-friendly environment. It also contains an interview with Humberto Astete, Tax Partner, EY Perú.…
Despite a challenging external environment, Peru’s annual average GDP growth has exceeded 5% over the last decade. However, the economy suffered in 2017 as a result of further damage inflicted by El Niño, and inflation averages approximately 3.25% per year. Economic growth began to recover in 2018, with GDP expanding by 4.1%, though this is expected to moderate to 3.7% in 2019 and 2020. While P
Interview :Humberto Astete Miranda What areas of the fiscal regulatory framework should be targeted by the tax reform? HUMBERTO ASTETE MIRANDA: A large part of the Peruvian economy fails to pay taxes, which is why the reform should prioritise the fight against tax evasion in the informal economy. At the same time it is important to enhance the use of invoices. One of the reasons why invoices…
Peru has had several so-called tax reforms over recent years. One could argue, however, that this has not been the case. During the Ollanta Humala administration, the progressive reduction of the income tax for businesses was enacted from the 30% rate that was in force until 2014, to 26% in 2019, going through 28% and 27% in between. Simultaneously, a progressive increase of taxes on dividends was…
This chapter provides an overview of Peru’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, international tax transparency, double taxation treaties, VAT regulation, foreign source income and other investor considerations. This chapter contains an interview with Humberto Astete Miranda, Tax Partner, EY Perú.…
A raft of ongoing tax reforms is expected to focus largely on expanding the country’s tax base and curtailing tax evasion. There are five different types of corporations typically used by investors for the development of business activities in Peru that are regulated by the General Corporate Law (GCL). These structures include joint stock companies, closely held corporations, publicly held corporations,…
With an average growth rate of 5.9% over the past decade, Peru’s economy has consistently outperformed most regional neighbours. Politically, the country has recently emerged from a period of instability and security concerns to rank among the top investment destinations in the developing world. Indeed, after a political transition that threatened business confidence and investment projects in t
Over the last decade Peru has consistently been the fastest-growing economy in Latin America, and unlike some of its neighbours, has been remarkably resilient to global headwinds, registering positive growth rates for an uninterrupted 18 years through to 2016. While the pace of growth has slowed as the long commodities boom ebbed after 2012, Peru recorded an average annual growth rate of 5.9% in 2
