January 4, 2022
Peru's President enacts various tax measures
The President enacted several tax measures that include provisions for aquaculture and forestry activities and extending the value-added tax (VAT) exemption for certain activities and services.
On December 30, 2021, the Peru's President enacted several Legislative Decrees that modify certain tax provisions and apply for tax year 2022. For information on the approval of the President's request to enact these tax measures, see Tax Alert 2022-0004.
Aquaculture and forestry activities
(Legislative Decrees 1515 and 1517)
As of January 1, 2022, taxpayers engaged in aquaculture and forestry activities will have the same tax benefits as those applicable to the agribusiness tax regime. Those benefits are as follows:
(Legislative Decree 1516)
For Peruvian companies that receive income from foreign investments and enter stability contracts on tax matters with the Government, the corporate income tax rate will equal the rate applicable for the tax year in which the stability contract is signed, plus two points. Previously, the corporate income tax rate was stabilized at the rate applicable to the tax year in which the stability contract was signed, with no additional points.
(Legislative Decree 1518)
As of January 1, 2022, an effective withholding tax rate of 2.7% will apply to income from the sale of highly migratory hydrobiological resources by nonresident entities to Peruvian entities.
(Legislative Decree 1519)
The VAT exemption was set to expire on December 31, 2021. Legislative Decree 1519 extends the VAT exemption for activities and services listed in Appendix I and II of the VAT law until December 31, 2022. The VAT exemption applies to the following activities and services, among others:
The Legislative Decree also extended until December 31, 2024: