PERU Law and Practice Contributed by: Alfred Kossuth Wieland and Edgardo Bernal Santos, Thorne, Echeandia & Lema Abogados
Especiales Privadas – ZEEPs). This regime is aimed at attracting foreign private investment through a highly favourable tax and customs framework. ZEEPs are specifically delimited areas within Peruvian territory that are managed by private operators and in which companies may access special benefits. Unlike traditional free trade zones, ZEEPs adopt a more mod - ern approach, provide greater legal stability and are designed to promote productive activities and export- oriented outcomes. The law pursues several objectives, including boost - ing exports of goods, encouraging foreign investment, achieving a significant increase in production, and fos - tering innovation within these regimes. Among the tax benefits granted, the regime guarantees tax stability throughout its entire term and provides exemptions from value added tax (IGV) on services rendered, transactions carried out and purchases made within the ZEEP. Legislative Decree No 662 Another key regulation applicable to foreign investors is Legislative Decree No 662, which sets out the legal framework for the promotion and protection of foreign investment. This decree seeks to ensure that foreign investors receive the same treatment as domestic investors, without discrimination based on the origin of the capital. For example, Legislative Decree No 662 allows up to 100% foreign ownership of Peruvian companies and guarantees free access to nearly all economic activi - ties, except for those restricted for national security reasons. It also recognises the right to freely remit abroad capital, profits, dividends and other payments related to the investment. In addition, it provides legal certainty through the possibility for investors to enter into Legal Stability Agreements with the State, pro - vided that all applicable requirements are met, ensur - ing tax stability, free availability of foreign currency and
lishing as a general principle that foreigners enjoy the same property rights as Peruvian nationals. However, this provision introduces a restriction in areas consid - ered to be of national security, providing that foreign investors may not acquire ownership rights within 50 km of the national borders, although the Constitu - tion allows foreigners to acquire such property where a public necessity is demonstrated and expressly declared by supreme decree approved by the Coun - cil of Ministers. Finally, certain sector-specific regulations (including telecommunications, energy and banking) require prior approval for equity investments made in com - panies subject to their supervisory regimes. Such prior approvals are generally focused on assessing the sol - vency and suitability of the shareholders who would acquire an interest in the supervised entity as a result of the investment. Companies domiciled in Peru (incorporated or estab - lished in Peru) are subject to Corporate Income Tax (CIT) on their worldwide income at a general rate of 29.5%, with monthly advance payments based on net income or a coefficient. Non-resident entities are taxed only on Peruvian source income, mainly through withholding on specific payments such as dividends, interest, royalties, technical assistance and capital gains. VAT at 18% applies to the sale of goods and services in Peru, with exporters zero rated and entitled to input VAT recovery regimes. Peru treats most corporate vehicles (S.A., S.A.C., S.A.A., S.C.R.L., etc) as separate taxpayers; there is no general tax transparent partnership regime com - parable to common law partnerships, and there is no group consolidation regime as of 2025. Residence is essentially incorporation-based, so the distinction relevant for tax is “domestic” (Peruvian-incorporated) versus “foreign” (non-resident), not corporation versus partnership. Foreign companies operating through a Peruvian permanent establishment (PE) are taxed on the PE’s net Peruvian source income at the same 29.5% rate, while foreign companies without a PE are 9. Tax 9.1 Taxation of Business Activities
the protection of property rights. Peruvian Political Constitution
Article 71 of the Peruvian Political Constitution regu - lates foreign participation in the ownership and pos - session of property within the national territory, estab -
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