Tax
From The Report: Peru 2018
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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.

Articles from this Chapter

Overview

Duties explained: Tax framework moves towards international standards
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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, limited liability companies and branches. The specific requirements of each of these models…

Analysis

Tackling informality: Upcoming reforms are expected to increase formalisation
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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 established, from 4.1% in 2014 to 6.8%, then 8% and finally 9.3% in 2019. The changes aimed to maintain…

Interview

Broadening the base: Humberto Astete Miranda, Tax Partner, EY Perú, on regulatory reform, double taxation treaties and collection levels
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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 are often not requested is because the provider has no incentive to issue receipts. During then-President…