Peru

Individual - Other taxes

Last reviewed - 17 July 2020

Social security contributions

Health contributions

Employers are obligated to make monthly health contribution payments equal to 9% of the total compensation paid to the employee.

Employees must choose affiliation with either the National Health System (EsSalud) or the Private Health System (Entidades Promotoras de Salud or EPS). 25% of the amount paid to the EPS may be used as a credit against EsSalud contributions.

Pension funds contributions

Employers must apply monthly withholdings for pension funds contributions equal to (i) 13% of the compensation received by the employee in cases where the employee is affiliated with the National Pension System or (ii) approximately 12.5% in cases where the employee is affiliated with the Private Pension System (in this case, 10% corresponds to their personal pension account and almost 2.5% to insurance and commissions for managing the fund).

Should a foreign individual’s labour contract end and the individual leaves Peru, the pension funds deposited in the Private Pension System (the aforementioned 10%) can be transferred to their pension fund abroad or wired to an account of the employee in a foreign bank if no individual pension fund abroad is available.

Consumption taxes

Value-added tax (VAT)

The general rate of VAT is 18%. See the Other taxes section in the Corporate tax summary for more information.

Property taxes

The real estate property tax is levied on the value of urban and rural real estate property. See the Other taxes section in the Corporate tax summary for more information.

Luxury and excise taxes

The sale of specific goods, including fuel, cigarettes, beer, liquor, and vehicles, is subject to excise tax. Since September 2018, gambling and betting, such as casino games, slot machines, lotteries, bingo, raffles, draws, and equestrian events, are subject to excise tax.

Excise tax rates, and the manner in which the tax is applied, depend on the type of goods or services.