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12 January 2026

Peru-United Kingdom double-tax treaty enters into force, applicable from April 2026 for UK and January 2027 for Peru

  • The double-tax treaty between the United Kingdom (UK) and Peru enters into force on 21 January 2026.
  • It will be applicable from April 2026 for the UK and January 2027 for Peru.
  • The treaty is anticipated to enhance cross-border trade and investment, offering affected taxpayers greater certainty and stability in their operations within both jurisdictions.
 

The double-tax treaty (DTT) between the United Kingdom and Peru enters into force on 21 January 2026. According to what is expressly established in the DTT, it will be applicable as follows:

  • In Peru
    • From 1 January 2027
  • In the United Kingdom
    • From 1 January 2027, for withholding tax at source
    • From 6 April 2026, for income tax and capital gains tax
    • From 1 April 2026, for corporation tax

On 20 March 2025, Peru and the United Kingdom had signed the DTT text, following years of negotiations (see EY Global Tax Alert, Peru and United Kingdom sign double-tax treaty, dated 24 March 2025). The treaty's entry into force was subject to the ratification by both contracting states, as well as notification through diplomatic channels.

Peru ratified the DTT on 20 November 2025, followed by the United Kingdom's ratification on 10 December 2025 (see EY Global Tax Alert, Peru and United Kingdom have now both ratified double-tax treaty, dated 19 December 2025). The last notification was made on 22 December 2025, resulting in the DTT's entering into force on 21 January 2026.

Entities and individuals in Peru and the United Kingdom should review the provisions of the DTT to ensure proper application in their operations. This treaty is expected to significantly enhance cross-border trade and investment, helping to provide certainty and long-term stability for companies in both jurisdictions, thereby improving their bilateral relationship.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young Asesores Empresariales S.C.R.L, Lima

Ernst & Young Consultores S.C.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

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

Document ID: 2026-0173

 

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