Peru’s President enacts various tax measures

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EY Global

5 Jan 2022
Subject Tax Alert
Jurisdictions Peru

The President enacted several tax measures that include provisions for aquaculture and forestry activities and extending the value-added tax (VAT) exemption for certain activities and services.

On 30 December 2021, the Peru’s President enacted several Legislative Decrees that modify certain tax provisions and apply for tax year 2022. For information on the approval of the President’s request to enact these tax measures, see EY Global Tax Alert, Peru enacts law allowing the President to enact various tax measures, dated 4 January 2022.

Aquaculture and forestry activities (Legislative Decrees 1515 and 1517)

As of 1 January 2022, taxpayers engaged in aquaculture and forestry activities will have the same tax benefits as those applicable to the agribusiness tax regime. Those benefits are as follows:

  • A 15% corporate income tax rate (CIT) for net income up to 1,700 Tax Units (approx. USD 1.9m) from 2022 to 2030

  • A gradual CIT rate increase for net income over 1,700 Tax Units (approx. USD 1.9m), which applies as follows:

Tax year CIT
2022 15%
2023 to 2024 20%
2025 to 2027 25%
2028 and onwards 29.5% (general corporate tax regime)
  • A 20% accelerated depreciation rate per year applies to specific infrastructure investments until 31 December 2025

Stability contracts (Legislative Decree 1516)

For Peruvian companies that receive income from foreign investments and enter stability contracts on tax matters with the Government, the corporate income tax rate will equal the rate applicable for the tax year in which the stability contract is signed, plus two points. Previously, the corporate income tax rate was stabilized at the rate applicable to the tax year in which the stability contract was signed, with no additional points. 

Hydrobiological resources (Legislative Decree 1518)

As of 1 January 2022, an effective withholding tax rate of 2.7% will apply to income from the sale of highly migratory hydrobiological resources by nonresident entities to Peruvian entities.

VAT exemption (Legislative Decree 1519)

The VAT exemption was set to expire on 31 December 2021. Legislative Decree 1519 extends the VAT exemption for activities and services listed in Appendix I and II of the VAT law until 31 December 2022. The VAT exemption applies to the following activities and services, among others:

  • Interest from the collection of credits transferred by banking entities to securitization companies, trusts or investment funds

  • Public transportation services within Peru, except for public rail passenger transportation and air transportation

  • Cargo transportation services from Peru to foreign countries and from foreign countries to Peru

  • Live shows

  • The sale or import of certain goods (fish, crustaceans, mollusks, fresh or refrigerated potatoes, beans, artichokes, among others)

The Legislative Decree also extended until 31 December 2024:

  • The refund for VAT and taxes paid for donations from foreign entities

  • The provisions for imports made by diplomatic missions

  • The VAT exemption for the issuance of electronic money by regulated electronic money companies


For additional information with respect to this Alert, please contact the following:

Ernst & Young Asesores S.C.R.L, Lima
  • Roberto Cores
  • Ramón Bueno-Tizón
  • Ingrid Zevallos
Ernst & Young LLP (United States), Latin American Business Center, New York
  • Lucas Moreno
  • Ana Mingramm
  • Pablo Wejcman
  • Enrique Perez Grovas
Ernst & Young Abogados, Latin America Business Center, Madrid
  • Jaime Vargas
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Lourdes Libreros
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo
  • Luis Coronado, Singapore

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.