Taxpayers should ensure they comply with the regulations, which includes maintaining records on ultimate beneficial owners.

On January 8, 2019, Peru's Minister of Economics issued Supreme Decree 003-2019-EF, which includes regulations on disclosing the ultimate beneficial ownership of entities, as required by Legislative Decree 1372. The Supreme Decree 003-2019-EF became effective on January 9, 2019.

Background

Legislative Decree 1372, enacted August 2, 2018, requires entities to report and identify individuals who are their ultimate beneficial owners to the Peruvian Tax Authority. This obligation applies to funds, investment funds, trusts, foreign trusts with a Peruvian administrator, joint ventures, etc. An individual is deemed a beneficial owner if he/she holds, at a minimum, 10% of an entity's capital.

Supreme decree 003-2019-EF

Supreme Decree 003-2019-EF regulates in detail the general rules established by Legislative Decree 1372. Under the regulations, the following entities must report and identify their ultimate beneficial owners:

• Peruvian entities duly incorporated in Peru
• Non-Peruvian entities, provided one of the following requirements is met:
1. The foreign entity has a branch or permanent establishment in Peru.
2. The foreign fund or foreign trust is managed by a Peruvian administrator, either an entity or an individual.
3. The consortium has a Peruvian resident as one of its parties.

The regulations also establish a special form that must be completed by the ultimate beneficial owner and filed by the entity with the Peruvian Tax Administration.

Entities must implement specific mechanisms to obtain and keep updated the information on their ultimate beneficial owners. If it is not possible to determine the ultimate beneficial ownership, directly or indirectly, the individual having the highest administrative position, such as a general manager or members of the board of directors, will be deemed the ultimate beneficial owner.

The Peruvian Tax Authority will set the deadline for filing the information.

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