April 1, 2022
Peru's President amends rules for determining the fair market value of Peruvian shares in direct transfers
The amendments incorporate new methodologies for determining the fair market value (FMV) of Peruvian shares in direct transfers.
On March 26, 2022, Peru's President enacted Legislative Decree 1539, amending the Income Tax Law to modify the FMV rules for direct transfers of Peruvian shares.
On October 27, 2021, Peru's President asked Congress for the power to enact tax measures. On December 27, 2021, the Congress approved the President's request to enact different tax measures, including new FMV rules applicable to securities. For information on the approval of the President's request to enact certain tax measures, see Tax Alert 2022-0004.
Legislative Decree 1539
Currently, the FMV of non-listed Peruvian shares in direct transfers is the higher of the transaction value or the equity value (based in the book value) of the Peruvian shares being transferred.
Legislative Decree 1539 incorporates new methodologies for determining the FMV of non-listed Peruvian shares for direct transfer purposes.
The new set of rules establishes that the FMV will be the higher of the transaction value or the value determined according to one of the following methods:
In addition, Legislative Decree 1539 establishes rules for determining the FMV of securities that are not shares. For such purposes, the FMV will be determined according to the following methods:
Regulations to implement the provisions of Legislative Decree 1539 must be issued within a period of no more than 120 calendar days of the legislative decree's effective date.
Legislative Decree 1539 will be effective January 1, 2023.