PERU Law and Practice Contributed by: Camilo Maruy, Maite Colmenter, Roberto Polo and Llanet Gaslac, Rebaza, Alcázar & De Las Casas
1.5 Stability of Tax Laws Peru has maintained relative stability in its tax laws, particularly with respect to the taxation of individu - als, estates, and wealth planning structures. Although presidential elections can generate a degree of uncer - tainty regarding potential tax reforms, no significant changes have been implemented in recent years. The core tax framework applicable to high net worth indi - viduals, trusts and estates has remained consistent. 1.6 Transparency and Increased Global Reporting Peru has taken several steps in recent years to address real or perceived abuses and loopholes in its tax system, in line with international transparency and compliance standards. Peru is a participating jurisdiction in the Common Reporting Standard (CRS) developed by the OECD and exchanges financial account information with other CRS jurisdictions. Additionally, Peru has entered into an intergovernmental agreement (IGA) with the United States to implement the Foreign Account Tax Compliance Act (FATCA), which facilitates the exchange of information regarding financial accounts held by US persons in Peruvian financial institutions. Furthermore, Peru has established a registry of ulti - mate beneficial owners ( Registro de Beneficiarios Finales ), which requires legal entities and certain arrangements to report their ultimate beneficial own - ers to the Peruvian tax authority (SUNAT). This registry is not public, but it is available to the Peruvian tax administration for enforcement purposes. These measures have increased transparency and regulatory scrutiny, which must be carefully consid - ered in any tax or estate planning strategy involving domiciled clients or assets located in Peru. 2. Succession 2.1 Cultural Considerations in Succession Planning In recent years, succession planning has become more common in Peru. Peruvian families and individu - als are showing greater interest in establishing wealth
involved. Both local and international structures may be used for planning purposes, including trusts, insur - ance products and investment funds. It is essential, however, that any tax planning strat - egy be based on a rigorous assessment of the indi - vidual’s or family’s particular situation and objectives. Tax planning must always be carried out within the framework of the law, and not with the purpose of tax avoidance or evasion. Compliance with legal and regulatory requirements is key to ensuring the sustainability and legitimacy of any planning structure. 1.4 Taxation of Real Estate Owned by Non- Residents In Peru, non-domiciled individuals who sell real estate located in the country are subject to income tax on the capital gain derived from the transaction; the appli - cable tax rate is 5%. Likewise, rental income (lease income) received by non-domiciled individuals from Peruvian real estate is also taxed at 5%. Additionally, individuals who purchase real estate in Peru may be subject to the Alcabala tax, which is lev - ied at a rate of 3% on the purchase price, with certain exemptions depending on the circumstances. Furthermore, all real estate properties in Peru are sub - ject to an annual municipal property tax known as Impuesto Predial , which is calculated based on the property’s official assessed value. There are planning strategies and structures that may be considered depending on the specific case, includ - ing the use of holding vehicles or other investment structures such as local investment funds and trusts. In Peru, two tax-efficient real estate investment vehi - cles are available: FIRBI (Real Estate Income Invest - ment Fund) and FIBRA (Real Estate Income Securiti - zation Trust). Both are designed to generate regular lease business income and offer potential for capital appreciation. However, each situation must be care - fully evaluated in accordance with Peruvian tax regu - lations.
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