Peru

Foreign tax relief

Taxpayers may claim a credit for income taxes paid abroad (subject to limitations).

Domiciled individuals are entitled to use taxes withheld or paid abroad as credit for the taxes paid on foreign income taxable in Peru, determined by their average Peruvian tax rate applied on their foreign income, up to a limit of the amount of tax actually paid abroad.

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.

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

Peru signed a double taxation agreement with the United Kingdom on 20 March 2025. The treaty will enter into force 30 days after ratification by both countries and will enter into effect from 1 January of the following calendar year. 

Peru also deposited its ratification instrument for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) on 9 June 2025.