On 1 January 2015, the progressive income tax rates for individuals were modified. Additionally, as of 11 January 2016, the dividend withholding tax (WHT) was reduced to 5%.
Peru's Income Tax Law now considers as a dividend any credit granted to shareholders, up to the limit of the profits and unrestricted reserves of the company.
As of 1 January 2017, individuals who receive either fifth category income (dependent services) or fourth category income (independent services) will be allowed to deduct three additional tax units for expenses such as mortgage interest, rent paid to a landlord, social security paid for housekeepers, and some independent professional services, provided that certain requirements are met.
Capital gains derived from the sale of property by non-domiciled individuals are subject to an effective 5% income tax rate. The same tax rate is applicable to domiciled individuals.
Law No. 30341 and Supreme Decree No. 382-2015-EF exempt from income tax from 2016 to 2022 the capital gain obtained from the sale of shares, provided that: (i) not over 10% of a company ownership is transferred and (ii) the shares have to be registered in the Lima stock exchange at least one year.