PERU Law and Practice Contributed by: Alvaro Echeandía, Alfred Kossuth Wieland, Pilar Santillán Meza and Rodrigo Varillas Cueto, Thorne, Echeandia & Lema Abogados
ing agent. The owner or beneficiary of the bank account must pay the ITF directly, with certain statutory exceptions. Corporate Assets Tax (ITAN) The ITAN is an annual tax levied at a rate of 0.4% of the value of corporate net assets of taxpayers included in the General Income Tax Regime or in the MYPE Income Tax regime. The tax applies if the value of the corporate net assets exceeds the amount of PEN1 million. To determine the ITAN tax basis, inflation, depre - ciation and amortisation, among other concepts, will be considered. Withholding Tax for Non-Residents Generally, income from activities performed within the country is considered as Peruvian source income. Therefore, income obtained by non-domiciled individuals from activities per - formed within Peruvian territory is taxed at a rate of 30% of gross income. In case of independent services, a 24% effective tax rate will apply. Regardless of any physical presence within the territory, “technical assistance services” provided by non-domiciled persons on behalf of Peruvian beneficiaries are taxed at a rate of 15%. Income from ”digital services”, royalties and Peruvian source income from other activi - ties obtained by non-domiciled persons is taxed at a rate of 30%, unless a lower statutory rate applies. The Peruvian income tax law defines the con - cepts of technical assistance, digital services and royalties. In respect of interest on foreign credits, if certain requirements are met, a 4.99% tax will apply. If
the loan is granted between related parties, the applicable tax rate will be 30%. In the case of dividends and other distributions of profit by a Peruvian company on behalf of non-domiciled shareholders, the applicable withholding tax will be 5%. If the beneficiary of the dividend is also a resident company, this tax does not apply. In respect of capital gains, in general, a tax of 5% applies to stock-listed transactions. Simi - larly, capital gains from the sale of real property by non-domiciled individuals are subject to a 5% withholding tax. In other cases, a tax rate of 30% may apply. Other Peruvian source income rules and tax rates may apply in particular cases. Regarding tax treaties to avoid international dou - ble taxation, Peru has a double-tax treaty (DTT) network negotiated under the OECD model with Brazil, Canada, Chile, Mexico, Portugal, Switzer - land, Korea and Japan. Peru is also a member of the Andean Community Treaty (578 Decision) along with Bolivia, Colombia and Ecuador. DTT can reduce or eliminate income tax, when applicable, provided that a Tax Residency Cer - tificate is issued by the tax authority from the country of residence of the respective party. 5.3 Available Tax Credits/Incentives Agriculture Among the most relevant benefits for this sec - tor are exemptions from VAT for sales within the country of certain products, a reduced income tax rate of 15%, and provided that certain requirements are met, an additional deduction for income tax purposes equivalent to 50% of the worker’s salary in case of new hirings.
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