January 11, 2023 Peru enacts preferential depreciation rates for buildings, construction and hybrid and electric vehicles
On 28 December 2022, Peruvian Congress enacted Law 31652, introducing preferential depreciation rates for specifics assets. Background The current depreciation rates established under the Peruvian tax legislation for buildings, construction and electric and hybrid vehicles are the following: Buildings and construction
Hybrid and electric vehicles (except railroads)
Law 31652 Law 31652 introduces preferential depreciation rates applicable as of 1 January 2023, for the following assets: Buildings and construction Taxpayers are entitled to use a maximum rate of 33.33% if the construction has started as of 1 January 2023; and at least 80% of the construction is completed by 31 December 2024. The 33.33% rate will not apply if the assets have been totally or partially built before 1 January 2023. Hybrid and electric Vehicles Taxpayers are entitled to use a maximum annual rate of 50%, for hybrid and electric vehicles acquired in 2023 and 2024. Law 31652 is effective as of 1 January 2023. ____________________________ For additional information with respect to this Alert, please contact the following: Ernst & Young Asesores Empresariales S. Civil de R.L., Lima
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
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