Peru and United Kingdom have now both ratified double-tax treaty

• On 10 December 2025, the United Kingdom ratified its double-tax treaty (DTT) with Peru, following Peru's ratification on 20 November 2025, enhancing cross-border trade and investment between the two countries.
• Once in effect, the provisions of the DTT will apply from 1 January of the calendar year immediately following its entry into force.
• The DTT will enter into force 30 days after both countries notify each other through diplomatic channels, but it is highly unlikely that the DTT will take effect on 1 January 2026.
• Affected entities in Peru and the United Kingdom should review the DTT's provisions to help ensure compliance and enhance their operations, as the treaty is expected to enhance their bilateral economic relationship.

On 10 December 2025, the United Kingdom ratified its double-tax treaty (DTT) with Peru. Peru had ratified the text on 20 November 2025.

For the DTT to enter into force, both of the contracting states must notify one another through diplomatic channels. The DTT will enter into force 30 days after the last notification.

The provisions of the DTT will take effect from 1 January of the calendar year immediately following the year in which the DTT enters into force. Therefore, with little time left in 2025, it is highly unlikely that the DTT will take effect in 2026.

Entities in Peru and the United Kingdom should review the provisions of the DTT to ensure proper application in their operations. The treaty is expected to significantly enhance cross-border trade and investment, providing certainty and long-term stability for companies in both jurisdictions, thereby improving their bilateral relationship.