Peru

Domestic corporations are required to withhold income tax with respect to income paid to non-resident entities at the following rates:

Note that resident taxpayers may not deduct the WHT of a third party, except in the case of loans provided by non-resident creditors, to the extent that the debtor has contractually assumed the obligation of bearing the WHT cost.

If the retribution for technical assistance exceeds 140 tax units, a report issued by an audit firm will be required, in which is stated that the technical assistance has been effectively rendered in order to apply the 15% WHT rate; otherwise, a WHT rate of 30% will apply.

Capital gains derived from the sale of stocks issued by a Peruvian company through the Lima Stock Exchange are taxed at a 5% rate. 

The royalties received by Peruvians and foreign authors and translators of books or related editorial products will be exempted from the income tax until to 2026.

In the case of the services mentioned below that entail the execution of activities both in Peru and abroad, non-resident entities are subject to a 30% WHT (except for the lease of vessels and aircraft, which are subject to a 10% WHT) on deemed Peru-source income determined by applying the following percentages to gross income:

Tax treaties

Peru has entered into treaties with Brazil, Canada, Chile, Japan, Korea, Mexico, Portugal, and Switzerland regarding double taxation on income tax under the Organisation for Economic Co-operation and Development (OECD) Model. 

Peru, as a member of the Andean Community, which also includes Bolivia, Colombia, and Ecuador, is subject to a double-taxation standard (based in source income and not on the OECD Model). 

In May 2024, Peru and the United Kingdom completed the negotiation of an Agreement to avoid double taxation with the objective of eliminating tax barriers that discourage trade and investment. Both countries expect to sign the Treaty in the following months.

Please see the chart below for the reduced WHT rates that apply under DTTs in force.

Notes

1. The lower rate applies in case the beneficial owner is a company that controls at least 20% (Brazil), 10% (Canada, Portugal, and Switzerland), or 25% (Chile and Mexico) of the voting power in the company paying the dividends.
2. The lower rate applies to loans from banks (Portugal and Switzerland) and sale on credit of industrial, commercial, and scientific equipment (Switzerland). Beginning 2 July 2023, a Treaty signed by the members of the Pacific Alliance entered into force. In this Treaty, a lower rate (10%) will apply to the pension funds. The reduced tax rate will apply to the Treaties in place with Chile and Mexico. According to this treaty if, due to domestic rules, the interests are exempted or the tax rate applicable is lower than 10%, rules of Article 11 (Interest) of those Treaties will apply.
3. The treaty rate applies to technical assistance in connection with copyrights, goods, or rights that generate royalties.