December 11, 2020
Peru repeals agribusiness preferential tax regime
With the repeal of Law 27360, agribusiness entities will be subject to a higher corporate income tax rate and a lower depreciation rate beginning January 1, 2021.
On December 4, 2020, Peru enacted Law 31087, which repeals the special rules to promote agribusiness (i.e., agrarian regime) established in both Law 27360 and Urgency Decree 043-2019.
In 2000, Peru enacted Law 27360, establishing the agrarian regime, which provided the following benefits to agribusiness entities:
The regime was extended until December 31, 2031 by Urgency Decree No. 043-2019.
With the repeal of Law 27360 and Urgency Decree 043-2019, agribusiness entities will be subject to the general tax regime beginning January 1, 2021. Under that regime, agribusiness entities will be subject to:
The agribusiness entities also are subject to the early VAT recovery regime, provided they meet the following requirements: