Peru tax reform legislation | KPMG | GLOBAL
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Peru: Tax reform includes increased corporate income tax rate

Tax reform in Peru

Tax reform enacted in Peru in December 2016 includes, among other items, an increase to corporate taxation.


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The tax reform measures—including changes to the corporate tax law, to the provisions regarding the exchange of information, and concerning transfer pricing measures—are effective beginning 1 January 2017.


Among the changes in the tax reform package are provisions that:

  • Increase the rate of corporate income tax from 28% to 29.5%. With the new law, previously planned reductions in the rate of corporate income tax no longer apply.
  • Reduce the rate of withholding tax on outbound dividends from 6.8% to 5%.
  • Introduce rules regarding the exchange of information (pursuant to Peru’s agreement to participate in the OECD’s Convention on Mutual Administrative Assistance in Tax Matters) and provide for automatic, spontaneous exchange of information as well as for the exchange of information upon request. Peru’s tax law has been modified to comply with these legislative changes and to provide authority to the tax administration and the tax court to resolve disputes concerning penalties for failure to comply with obligations under these provisions.
  • Provide a tax exemption (until 31 December 2019) with respect to gains arising from the transfer of shares, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), Exchange Trade Fund Units (ETFs) that have as a underlying asset, share or debt securities, debt securities, certificates of participation in mutual funds, and negotiable invoices, executed via certain centralized markets (i.e., the Lima Stock Exchange).
  • Provide “repatriation benefits” under a capital repatriation regime that allows resident individuals to repatriate capital that has not been declared to the tax authority prior to 2015. Under this regime, repatriated capital is subject to tax at a rate of 10% (compared with the normal 30% income tax rate). The rate is further reduced to 7% if the individual invests the repatriated capital in Peru.

Transfer pricing regime

The tax legislation also introduces formal transfer pricing requirements that generally are based on on OECD standards. These include documentation rules relating to:

  • Local file—Applicable to taxpayers with revenues greater than approximately U.S. $2.3 million. The first year for reporting is FY 2016, so that the report is due in 2017. Exact deadlines are pending, and yet to be defined. 
  • Master file—Applicable to taxpayers belonging to an economic group with revenues greater than approximately U.S. $20 million. The first report is due in 2018. Exact deadlines are pending, and yet to be defined. 
  • Country-by-country reporting—Applicable to taxpayers that belong to a multinational group. The first report is due in 2018. Exact deadlines are pending, and yet to be defined.

The information and reports may be shared with foreign tax authorities under the exchange of information provisions.


Commodity exports and imports: The legislation includes new criteria for establishing the market value of assets and commodities. Commodity export and import transactions with related parties or with entities located in “tax haven” jurisdictions must be priced, for tax purposes, based on the international quote of the commodity as of the shipment date (exports) or the landing date (imports), as follows.

  • Import of commodities: Market value is assessed with respect to the listed value based on the date of shipment.
  • Export of commodities: Market value is assessed with respect to the listed value based on the date of landing.


Intragroup services: Market value is based on costs and expenses, plus a profit margin not in excess of 5% for value-added services. 

A “benefit test” has been introduced to measure the value of added services. Under the test, the service provider is treated as adding economic value to the user of the service by improving or maintaining the user’s commercial position in the same manner as a third-party provider (or the user, in instances of self-development or self-creation) would have added such value through its services. 

Bank secrecy provisions

There are measures addressing bank secrecy in Peru. Under the new law, requests made to a court by the tax administration, seeking to “lift” bank secrecy must be resolved within 48 hours, and the requested information must be provided to the tax administration within the 10 business days following the notification of the letter that grants such disclosure requests.


For more information, contact a tax professional with KPMG’s Latin America Markets practice, Andean regional tax, or with the KPMG member firm in Peru:

Alfonso A-Pallete | +1 (305) 913 2789 |

Eric Thompson | +57 (1) 618 8122 |

Juan Carlos Vidal | +51(1) 611 3000 |

Khaled Luyo | +51(1) 611 3000 | 

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