Increase of corporate income tax (CIT) rate and decrease of dividends tax rate
As of 1 January 2017, the CIT rate has increased from 28% to 29.5%. In addition, the tax rate for dividends has decreased from 6.8% to 5%, which will apply to profits generated as of the above-mentioned date.
Decrease of value-added tax (VAT) rate
As of 1 July 2017, the VAT rate will decrease from 18% to 17%, provided that the VAT annualised collection (net of refunds) to 31 May 2017 reaches 7.2% of gross domestic product (GDP).
Exemption for capital gain tax in stock exchange sales
Initially, an exemption applicable to income derived from the sale of shares and other securities representing shares, made through the Stock Exchange, was approved until 31 December 2018, provided that certain requirements were met.
Such exemption has been extended until 31 December 2019. The scope of the exemption now embraces not only the sale of shares and securities representing shares, but also the sale of the following: (i) securities representing debts, (ii) certificates of participation in mutual funds for investment in securities, (iii) certificates of participation in Real Estate Investment Funds, (iv) certificates of participation in the Securitization Trust for Investment in Real Estate Income, and (v) negotiable invoices.
New Peruvian income source event
Peruvian-source income now includes income obtained by the transfer of credits through factoring in which the factor or acquirer of the credit assumes the credit risk of the debtor, when the client or transferor of the credit is a domiciled entity in the country or when the assigned debtor is domiciled in the country.
Transfer pricing benefit test requirement and formal obligations
For inter-company services, a new benefit test must be accomplished.
In addition, the following new formal obligations have been approved: (i) informative tax return - Local report, (ii) informative tax return - Master report, (iii) and informative tax return - Country-by-country (CbC) report.
Mutual administrative assistance procedure
The mutual administrative assistance procedure has been established in the Tax Code. According to this procedure, the tax administration can request financial information of the taxpayers from financial institutions. Additionally, this mechanism provides assistance on information exchange and tax collection with authorities of countries with whom Peru has treaties that include information exchange and mutual assistance.