Market overview

While transfer pricing in Peru has stood still during the past year in terms of legislation updates, there have been movements in other parts of the market. New Peruvian president Pedro Pablo Kuczynski has encouraged the tax authorities to take a new approach to auditing companies, but it is a transition that will not necessarily happen overnight.

Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT), Peru's tax authority, is trying to show a new, friendlier face and make it easier for taxpayers to pay their taxes, said Dante Sanguinetti, partner at Philippi Prietocarrizosa Ferrero DU & Uría.

"They are trying to be more helpful and closer to the taxpayers, and they have people to help taxpayers to file and accomplish all the formalities. They're trying to change the image they had," said Carlos Chirinos, tax manager at Grant Thornton.

The new image, however, has not changed the substance of how the tax inspectors carry out their audits. Tax practitioners say that it is well known in the industry that the tax inspectors have collecting figures and an incentive to collect taxes.

With regards to the OECD, Peru is not yet a member but has been engaging with the organisation through participating in the substantive work of many of the OECD's specialised committees. However, tax practitioners are uncertain about whether the government will implement the actions in the OECD's BEPS project.

"We [Peru] haven't yet implemented any rules like other countries have been doing, but we are developing transfer pricing rules according to international trends," said Gustavo Lazo, on June 2 2016, when he was head of tax at Estudio Olaechea (Lazo has since moved to Rodrigo, Elías & Medrano Abogados). "We have been watching the OECD, but the government hasn't yet related any laws regarding that."

Tax authorities

Superintendencia Nacional de Aduanas y de Administración Tributaria
Av. Garcilaso de la Vega 1472, Lima
Tel: +51 1 315 0730; +51 1 634 3300; +51 1 634 3600

Ministry of Economic and Finance
Jr. Junín 319, Cercado de Lima, Lima
Tel: +51 1 311 5930

Tax rates at a glance

(As of April 2016)

Corporate income tax rate 28% (a)(b)
Capital gains tax rate 0/5/30% (c)
Branch tax rate 28% (d)
Withholding tax
Dividends 6.8% (e)
Interest 4.99/30% (f)(g)
Royalties 30% (f)
Technical assistance 15% (f)
Digital services 30% (f)
Branch remittance tax 6.8% (d)
Net operating losses (years)
Carryback 0
Carryforward 4/Unlimited

  1. The corporate income tax is 28% for the 2015 and 2016 fiscal years. For the 2017 and 2018 fiscal years, the rate will be 27%. For the 2019 fiscal year and future years, the rate will be 26%.
  2. Mining companies are subject to an additional Special Mining Tax or to "voluntary" payments.
  3. Capital gains derived by non-resident entities are subject to income tax at a rate of 5% if the transfer is made in Peru. Otherwise, the rate is 30%. For the period of January 1 2016 through December 31 2018, capital gains derived from the transfer of shares, or listed securities representing shares, carried out through the Peruvian stock exchange are exempt from tax if certain conditions are met. Capital gains derived by resident entities are subject to income tax at a rate of 28%.
  4. Branches and permanent establishments of foreign companies are subject to the same corporate income tax rate as domiciled companies.
  5. The Dividend Tax, which is imposed at a rate of 6.8% and is generally withheld at source, is imposed on profits distributed to non-residents and individuals. The Dividend Tax rate will increase to 8% for the 2017 and 2018 fiscal years and to 9.3% for the 2019 fiscal year and future years.
  6. This tax applies to payments to non-residents.
  7. A reduced rate of 4.99% applies to certain interest payments.

Source: EY 2016 Worldwide Corporate Tax Guide