Business Environment

flag Peru Peru: Business Environment

In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices


Accounting Rules

Tax Year
The fiscal year begins on 1 January and ends on 31 December of the same year.
Accounting Standards
Accounting Regulation Bodies
National Directorate of Public Accounting
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
National Directorate of Public Accounting
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.
Accounting News

Return to top

Tax Rates

Consumption Taxes

Nature of the Tax
Value added tax (VAT) - Impuesto General a las Ventas (Local name)
Tax Rate
Standard VAT rate is 18% (16% of VAT plus 2% of municipal promotion tax)
Reduced Tax Rate
Exports of goods, fruits and vegetables, educational services and public transportation are exempt from VAT.
No other reduced rates apply.
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 beverages (20%, 40% for liquors with 20% or more alcohol); sugary drinks (17% for up to 6 grams of sugar per 100 millilitres, 25% for higher sugar content), luxury items, fuel, gambling and betting.

Return to top

Corporate Taxes

Company Tax
Tax Rate For Foreign Companies
Resident companies are taxed on their worldwide income, non-resident companies only on the Peru-source income.
An entity is considered resident for tax purposes if it is incorporated in Peru or if it has a permanent establishment in the country.
Foreign companies are subject to the same tax regime as Peruvian companies. However, branches are taxed at the corporation tax rate, plus a remittance tax at 5% that applies to deemed profit distributions.
Capital Gains Taxation
Capital gains are generally considered as income and taxed at the ordinary corporate tax rate. If the seller is a non-domiciled party, gains derived from the sale of stock issued by a Peruvian company through the Lima Stock Exchange are taxed at a 5% rate. Such gains are subject to exemption if the stock has a market presence and more than 10% interest is transferred (valid through January 2019 until December 2022).
Main Allowable Deductions and Tax Credits
Payments exceeding PEN 3,500 or USD 1,000 must be made via bank account deposits, wire transfers, payment orders, credit cards, non-negotiable cheques, or other means of payment provided by entities of the Peruvian financial system or else the deductions will be disallowed.
Assets may be depreciated for tax purposes via the straight-line method, at rates between 10% and 25%.
Deductions are available for: interest on loans, insurance premiums, leases of aircraft and ships, maritime freight, and fees for transiting the Panama Canal; depreciation; loss; payment of royalties to non-domiciled affiliates; taxes; start-up and operational costs; wages and salaries; health insurance premiums; vehicle expenses.
Donations to charitable organisations are deductible up to 10% of taxable income. Donations of food apt for human consumption are also deductible, capped at 1.5% of total sales.
Tax losses of Peruvian origin can be carried forward up to four years, unless the taxpayer opts for offsetting the losses against 50% of the net income generated in the following fiscal years after the year in which the loss was generated. However, net losses established in 2020 shall be offset year-to-year in the 5 immediate years, counted from 2021, until their amount is exhausted (COVID-19 related measure). The carryback of losses is not permitted.
From 2020, taxpayers investing in scientific research, technological development, and technological innovation projects can enjoy special deductions between 150% and 215% of the expenses incurred.
Other Corporate Taxes
Employers contribute 9% of salary for healthcare and apply monthly withholdings of 13% or 12.4% for the pension fund, with no other payroll tax in place. Employers should pay an insurance premium for employees who perform high-risk activities.
A property tax is collected by municipal authorities at rates of 0.2%, 0.6% and 1%, depending on the value of the property (deductible from the corporate income tax). Real estate transfer taxes are levied at 3% of the sale price and payable by the buyer. The first 10 tax units (equivalent to PEN 4,600 each in 2022) of the transaction are tax-exempt.
Banking and financial transactions are taxed at a rate of 0.005%. Companies with a total value of assets exceeding PEN 1 million are subject to a temporary net asset tax of 0.4% (the tax applies only to the part exceeding PEN 1 million).
Mining companies are subject to a new royalty regime ranging from 1% to 12%. The special tax on mining varies between 2% and 8.4% while companies having voluntarily concluded a tax stability agreement with the Peruvian government pay in addition a contribution varying between 4% and 13.2% of their mining income. Mining companies are also subject to a contribution surcharge for the activities of the Supervisory Agency for Investment in Energy and Mining (Osinergmin). The tax is collected at a rate of 0.14% of monthly turnover in 2022. Companies are also subject to a contribution tax for the activities of the Agency for Environmental Assessment and Enforcement (0.10% in 2022).
Entities with more than 20 employees, provided they obtain taxable income during the fiscal year, must distribute a percentage of their profits among their employees (10% for fishing, telecommunications and manufacturing  companies; 8% for mining, wholesale, retail and restaurants; and 5% for other activities).
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Peru Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 8.0 28.2 10.6 9.0
Time Taken For Administrative Formalities (Hours) 260.0 327.5 175.0 218.0
Total Share of Taxes (% of Profit) 36.8 46.8 36.6 48.8

Source: Doing Business - Latest available data.

Return to top

Individual Taxes

Tax Rate

Individuals income tax Progressive rate which is made according to a system of annual units. One unit is equal to PEN 4,600 for 2022.
0 to 5 units 8%
5 to 20 units 14%
20 to 35 units 17%
35 to 45 units 20%
Beyond 45 units 30%
Non-domiciled employees 30% on their gross Peruvian-source income (no deductions or credits allowed)
Allowable Deductions and Tax Credits
The taxpayers benefit from various deductions according to the nature of their income (salary, pension, etc.). For example, domiciled individuals who receive income from employment or professional income can enjoy a total deduction equivalent to seven tax units from their gross income.
Employees and independent professionals are allowed to deduct three additional tax units for expenses such as mortgage interest, rent paid to a landlord, social security paid for housekeepers, and some expenses paid to independent professional services (conditions apply). Furthermore, employees and independent professionals are allowed to deduct 30% of all expenses paid to independent professional services. 25% of expenses derived from hotels, bars, and restaurants are also deductible (FY 2021 and 2022).
Charitable contributions to entities and dependencies of the government and non-lucrative entities are deductible (up to a limit of 10% of the net taxable income).
Domiciled individuals with income other than remuneration can deduct 20% of rental income and 20% of gross royalties received, with professionals being able to deduct 20% of gross revenues (capped at 24 tax units), plus an annual amount of seven tax units.
Special Expatriate Tax Regime
Domiciled individuals are subject to income tax on their worldwide income, whereas non-domiciled individuals are only taxed on their Peruvian-source income.
Foreign individuals are deemed to be domiciled in Peru for tax purposes if they have resided or been in the country for more than 183 calendar days within a 12-month period.
Non-domiciled employees are taxed at a flat rate of 30% on their gross Peruvian-source income, without any deduction or credit applying.

Return to top

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of the Double Taxation Agreements
Withholding Taxes
Dividends: 0 (resident companies)/5% (non-resident companies, individuals; earned on or after 1 January 2017), Interests: 0 (resident companies)/5% (resident individuals)/Non-residents: 4.99% (if certain conditions are met)/30%, Royalties: 0 (resident companies)/5% (resident individuals)/Non-residents: 30%

Return to top

Sources of Fiscal Information

Tax Authorities
Overview of Peru's tax measures in response to Covid-19
Other Domestic Resources
Ministry of Economy and Finance
CIAT - Peru

Return to top

Intellectual Property

National Organisations
Peru signed the Paris Convention for the Protection of Industrial Property and the agreement which establishes the World Intellectual Property Organization (WIPO).
The INDECOPI is the Peruvian organization responsible for the protection of patents and trademarks.
Regional Organisations
As a member of the Andean Community, Peru is subject to the legislation of the Andean Community regarding intellectual property which controls industrial property (Régimen común de Propiedad industrial), copyright and related rights.

National Regulation and International Agreements

Type of property and law Validity International Agreements Signed
Industrial Property Law (Legislative Decree No. 823)
20 years
Industrial Property Law (Legislative Decree No. 823) 23  April, 1996
10 years, renewable for consecutive periods of 10 years
Industrial Property Law (Legislative Decree No. 823)
10 years  
Industrial Property Law (Legislative Decree No. 823)
20 years WIPO Copyright Treaty
Industrial Models
Industrial Property Law (Legislative Decree No. 823)
10 years  

Return to top

Legal Framework

Independence of Justice
Third party opinion believes Peru’s judicial system is not completely independent though the government is trying hard to change this. General perception of the judicial system is that it is inefficient, overloaded and riddled with bureaucratic and political influence.
Equal Treatment of Nationals and Foreigners
It is considered that foreign nationals cannot expect an impartial trial from the country’s judicial system.
The Language of Justice
There are two judicial languages used in the country: Spanish and Quechua.
Recourse to an Interpreter
Having an interpreter is possible.
Sources of the Law and Legal Similarities
The main source of the law in Peru is the constitution of 1993. The country’s legal system is based on a civil law system. Peru accepts compulsory International Court of Justice (ICJ) jurisdiction but with reservations.
Checking National Laws Online
Peruvian legislation (Digital archives)

Return to top


National Standards Organisations
INDECOPI, (Institute for the defense of competition and protection of intellectual property ).
Integration in the International Standards Network
The National Institute for the Defense of Competition and Intellectual property (INDECOPI) is integrated in the Pan American Commission for Technical Standards at the regional level, and is a member of the International Organization for Standardization and the International Electrotechnical Commission.
Classification of Standards
The national standards are the NTP. For more information consult the INDECOPI website.
Online Consultation of Standards
All information about Peruvian standards can be found on the INDECOPI website.
Certification Organisations
INDECOPI Institute for the defense of competition and protection of intellectual property.

Return to top

Business Practices

General Information
Culture Atlas
Expat Arrivals
Opening Hours and Days
Banks are open from Monday to Saturday, from 9 am to 1 pm and from 3 pm to 6 pm Shops are open from Monday to Saturday from 9 am to 8 pm. Public administrations from Monday to Friday from 9 am to 5 pm (in winter) and from 8 am to 3 pm (in summer).

Public Holidays

New Year's Day 1 January
Monday Thursday and Good Friday variable
Labor Day 1 May
Feast of St Peter and St Paul 29 June
Independence Day celebrations 28 and 29 July
Saint Rosa of Lima 30 August
Angamos Battle 8 October
All Saints Day 1 November
Immaculate Conception 8 December
Christmas Day 25 December
Holiday Compensation
If a public holiday falls on a Saturday or Sunday, the Monday is a holiday instead.

Periods When Companies Usually Close

Summer Company activity slows down during the summer over a period between the end of December and the end of February.

Return to top

Any Comment About This Content? Report It to Us.


© eexpand, All Rights Reserved.
Latest Update: May 2024