Peru

Individual - Foreign tax relief and tax treaties

Last reviewed - 24 July 2024

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).

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.