Peru: Tax & Auditing Requirements

The tax authorities in Peru are the Tax Administration (SUNAT) and the Tax Court (Tribunal Fiscal) (source)

  • Residence: A company is considered a resident for tax purposes if it is incorporated in Peru
  • Basics:
    • Resident corporations are taxed on worldwide income
    • Nonresident corporations and branches of foreign entities are taxed only on Peruvian-source income
    • Branches: taxed at the corporation tax rate plus a remittance tax
    • Foreign source income: Derived by residents is subject to corporation tax in the same was as peruvian source income but is calculated separately
    • Subsidiaries: are taxed at the normal corporation tax rate
  • Taxable income: All income derived by a company, including capital gains. Normal business expenses may be deducted in computing taxable income
  • Taxation of dividends: dividend distributions between resident entities are not taxed. Foreign dividends received by a peruvian entity are included in taxable income and are subject to a normal corporate tax rate but with a tax credit for foreign tax paid on the dividends. More information here
  • Capital gains: Capital gains are generally taxed at the normal corporate tax rate
  • Losses: A taxpayer has the option to carry forward all (Peruvian-source) net operating losses for four years or carry the losses forward indefinitely but to offset only up to 50% of the taxpayer’s taxable income for each subsequent year
  • Rate: The standard corporate tax income rate is 29.5%. Different corporate income tax rates may apply to certain activies under special regimes
    • The mining and hydrocarbon industries (except for natural gas) that enter into tax stability agreements is stabilized at the tax rate in force plus two additional percentage points
  • Surtax: No
  • Alternative Minimum Tax: No
  • Foreign Tax Credit: Tax credit available for income tax paid on foreign-source income. More information here
  • Participation exemption: No
  • Holding Company Regime: No
  • Incentives: Investors in large mining, oil or gas operations may conclude tax law stability agreements with the government for periods of 10 to 15 years

Value Added Tax, equivalent to VAT, is applied to the following activities in Peru: (source)

  • Sale of movable property in Peru
  • Services rendered or used in Peru, with the exception of credit services provided by financial institutions; passenger transport services within the country; freight services from the country to outside and those made from abroad to the country; nominative interest on bonds issued by companies incorporated or to be incorporated in Peru, among others
  • Construction contracts executed in our country. The first sale of real estate made by its own constructor Importation of goods


  • Financial reporting framework: is established by the Code of Commerce of 1902 and the Company Law of 1997 source
    • Code of Commerce establishes the obligation for companies to keep books of accounts and provides the basic legal framework for accounting
    • The Company law says that financial statements must be prepared in accordance with generally accepted accounting principles in Peru
    • The Accounting Standards Board is responsible for setting accounting standards for all non-regulated companies
    • In accordance with Law No. 29720 of 2011 all corporations with annual revenues or assets of 3,000 tax reference units or more must present their audited financial statements to the the Superintendence of Security Markets (SMV) More information here
  • Audit Oversight Arrangements: No independent audit oversight arrangement exists in Peru (quoted from here)
    • Law No. 28951 of 2007 does, however, authorize the Departmental Associations of Public Accountants to set auditing standards and ethical requirements, carry out investigation and disciplinary processes and maintain a registry of public accounts and firms in each of their respective jurisdictions
    • In addition, the Superintendence of Security Markets and the Superintendence of Banking, Insurance, and Pensions maintain registries and have practice review procedures for auditors who provide services for entities under their respective supervision
  • Important Resolutions (quoted from here)
    • June 2011: Peruvian Congress enacted Ley Ley Nº 29720 requiring all private companies to file financial statements with the SMV prepared in conformity with IFRS as issued by the IASB following endorsement of those standard by the standard-setter for non-listed companies:
    • April 2012: Resolution N° 011-2012-SMV/01requires non-public filers in the local Stock Market to prepare financial statements under IFRS as issued by the Inernational Accounting Standard Board in phases as follows:
      • Companies with total assets and/or net revenues higher than US$ 40 million should have audited financial statements prepared under IFRS as issued by IASB for for fiscal years ended December 31, 2013 with early application being optional;
      • Companies with total assets and/or net revenues higher than US$ 4 million should have audited financial statements prepared under IFRS as issued by IASB for fiscal years ended December 31, 2014 with early application being optional.

More information can be found on the Peruvian Ministry of the Economy and Finance website

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