Verified Facts
In Peru, the tax rates range from 15% to 30% for personal income tax, with a corporate tax rate of 29.5% and a value-added tax (VAT) rate of 18%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Peru operates on a territorial taxation system, where only income earned within the country is subject to taxation, except for Peruvian tax residents who are taxed on their worldwide income. To be considered a tax resident in Peru, an individual must have a permanent home in the country, or spend more than 183 days in a calendar year in Peru. The tax system is overseen by the Sunat (Superintendencia Nacional de Administración Tributaria), which is responsible for collecting taxes, customs, and other government revenues.
The Peruvian tax system is designed to promote economic growth and investment, with various incentives and exemptions available to encourage foreign investment and trade. The country has a network of double taxation treaties with 16 countries, which helps to prevent double taxation and fiscal evasion. These treaties also provide a framework for the exchange of tax information and cooperation between tax authorities. Peru's tax system is also subject to international standards and guidelines, such as those set by the Organisation for Economic Co-operation and Development (OECD).
Personal Income Tax
| Income Bracket (PEN) | Tax Rate |
|---|---|
| 0 - 15,000 | 15% |
| 15,001 - 30,000 | 20% |
| 30,001 - 45,000 | 23% |
| 45,001 - 60,000 | 25% |
| 60,001 and above | 30% |
Personal income tax in Peru is levied on the income earned by individuals, including employment income, business income, and investment income. Taxpayers are entitled to various deductions and allowances, such as a basic deduction of PEN 7,200 per year, as well as deductions for mortgage interest, medical expenses, and charitable donations. Tax returns must be filed annually by April 30th, and taxpayers can file online or through a tax agent. It is also important to note that tax credits are available for certain expenses, such as education and healthcare expenses.
Corporate & Business Tax
- The corporate tax rate in Peru is 29.5%, which applies to the taxable income of companies.
- Small businesses with annual sales of up to PEN 1,500,000 may be eligible for a reduced tax rate of 10%.
- Peru has several free zones, such as the Zona Franca de Ilo, which offer tax incentives and exemptions to companies that operate within these zones.
- Companies must register with the Sunat and obtain a tax identification number (RUC) to operate in Peru.
- Companies are also required to file annual tax returns and pay taxes on a quarterly basis.
VAT / Sales Tax
- The standard VAT rate in Peru is 18%, which applies to most goods and services.
- A reduced VAT rate of 16% applies to certain goods, such as basic foodstuffs and agricultural products.
- Exemptions from VAT are available for certain goods and services, such as healthcare and education services.
- Tourists may be eligible for a VAT refund on certain purchases, such as hotel accommodations and tourist services.
For Expats & Foreign Workers
- Expats who are tax residents in Peru are taxed on their worldwide income, while non-residents are taxed only on their Peruvian-sourced income.
- Peru has double taxation treaties with 16 countries, which helps to prevent double taxation and fiscal evasion.
- Expats may be eligible for a foreign tax credit for taxes paid in their home country.
- Social security contributions are mandatory for employees and employers in Peru.
- Remittances of foreign currency are subject to a 5% tax, unless the remittance is made to a Peruvian bank account.
- Expats may also be required to obtain a tax identification number (RUC) to work in Peru.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to a 5% tax rate, or may be included in the taxpayer's income tax return.
- Cryptocurrency transactions are subject to VAT and income tax, and taxpayers must declare their cryptocurrency holdings on their tax return.
- Capital gains tax applies to the sale of securities and other assets, and the tax rate ranges from 5% to 30%.
- Taxpayers may be eligible for a tax exemption on certain investment income, such as interest on government bonds.