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Want to set up a company in Peru? This will tell you about tax laws in Peru for a LLC, which is the most common legal entity in Peru.

Peruvian resident entities are liable to corporate tax on their worldwide income. This means that offshore income remitted back, from our research, and these things do change, is subject to an income tax of 29.5%. Peru may not have exemptions to remit foreign earned profits. Corporate Income tax rate is 29.5%. Investors in the mining and the hydrocarbon industries may be taxed at a 31.5%. Peru ranks 134th overall in terms of corporate tax rate worldwide.

The value added tax (VAT) rate is 18%, that ranks Peru as 116th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 9% to the equivalent of a social security fund and an employee will not make any contribution. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 144hours. Contributing to this is the number of yearly labor tax payments, which is 1 in PE.

Thin capitalisation mandates are officially enacted. This refers to any type of requirements on companies' debt-to-asset ratios. Dividends received by resident entities are not subject to taxation. Dividends received from a foreign entity may be included in corporate income tax base, however a tax credit for foreign tax paid may be available. Dividends are payments of company profits, decided by the board, to a particular class of shareholders. Dividends can be one of the following shares of stock, cash payments, or other property. Capital Gains are usually included in corporate income tax base. Gains from the disposal of shares of a company listed in the Peruvian Stock Exchange Market may be tax exempt under certain conditions. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

Interests paid to non-residents that certifies certain requirements are subject to a withholding tax of 4.99%. Otherwise would be taxed at 30%. Dividends remitted abroad are subject to a withholding tax of 5%. Royalties paid to non-residents are subject to a withholding tax of 30%.
There is no known tax on wealth in Peru. There are no inheritance taxes. There are transfer and real property taxes. There are frequently implemented R&D intitiatives that provide tax relief in PE.

The above is not tax or legal advice for your particular company tax obligations. We are able to point you to a tax advisor in Peru who will advise you. Ready to get started? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

South America
Spanish (Peru), qu, ay

Tax treaties

Country Type Date Signed
Argentina TIEA 2004-10-07
Switzerland DTC  2012-09-21
Chile DTC  2001-06-08
Canada DTC  2001-07-20
Portugal DTC  2012-11-19
Colombia DTC  2004-05-04
Korea, Republic of DTC  2012-05-10
Brazil DTC  2006-02-17
United States TIEA 1990-02-15
Mexico DTC  2011-04-27
Spain DTC  2006-04-06

Tax treaties Map



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