Obtaining Tax Identification Number

Once a company has been registered, it can apply for tax identification number (Registro Único de Contribuyentes - RUC) with the National Superintendency of Customs and Tax Administration (Superintendencia Nacional de Aduanas y de Administración Tributaria - SUNAT).

There is no statutory deadline for obtaining a TIN. However, a TIN is legally required for a company to carry out any taxable activity, including:

• Issuing invoices or receipts
• Entering into commercial transactions
• Hiring employees
• Importing or exporting goods

Banks require a TIN to open corporate accounts, and it is typically required by counterparties in commercial arrangements. In practice, companies usually obtain a TIN immediately after incorporation.

Tax Overview in Peru

Companies incorporated in Peru are considered residents for income tax purposes. Individuals are deemed to be domiciled in Peru for tax purposes if they have resided or been in Peru for more than 183 calendar days within a 12-month period.

Peru’s financial year runs from 1 January to 31 December. Below is an overview of three major taxes applicable to business entities in Peru:

• Personal Income Tax
• Corporate Income Tax
• Value-added Tax

Personal Income Tax

The following table outlines the annual Personal Income Tax (PIT) rates for domiciled individuals:

*One tax unit = 5,500 Peruvian soles (PEN).

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Income tax on non-domiciled employees is imposed at a flat rate of 30% on their gross Peruvian-source income.

Employers are required to declare and withhold PIT from employee salaries and remit the tax to SUNAT between the 16th and 26th day of the following month. Where there is no withholding obligation, income tax must be paid upon filing the annual income tax return, between 16 March and 13 April each year, depending on the last digit of the TIN.

Capital gains derived from the sale of shares by domiciled individuals are subject to an effective income tax rate of 5%. Likewise, income from leases is subject to an effective income tax rate of 5%.

Corporate Income Tax

Companies incorporated in Peru are generally subject to a Corporate Income Tax rate of 29.5% on worldwide net income. In general, expenditures incurred for the purpose of generating business income are deductible for Corporate Income Tax purposes.

On the other hand, companies incorporated outside Peru are subject to a 30% income tax on gross Peruvian-source income. As a general rule, foreign companies are not permitted to deduct expenses and are taxed on a gross income basis.

CIT must be paid monthly in advance, between the 16th and 26th day of the following month, depending on the last digit of the TIN. In addition, an annual CIT return must be filed with SUNAT between 16 March and 13 April each year, also depending on the last digit of the TIN.

Value-added Tax

The general rate of Value-added Tax (VAT) is 18%. VAT is imposed on goods produced and sold locally, services rendered within Peru, the first sale of real estate made by constructors, and goods imported into the country.

Input VAT can be offset against output VAT. If excess input VAT arises in a given month, it shall be offset against output VAT in the following months until it is fully utilised.

VAT must be declared and paid monthly, between the 16th and 26th day of the following month, depending on the last digit of the TIN.

Other Taxes

Dividends distributed to domiciled individuals and non-domiciled taxpayers (whether individuals or entities) are subject to a 5% withholding tax. However, dividends distributed to domiciled entities are exempt from taxation.

How we can help you

Our legal team offers comprehensive support in the following areas:

• Advising on tax laws, regulations, and double taxation agreements
• Tax and investment structuring
• Preparation of Corporate Income Tax, Value-added Tax, and Personal Income Tax returns
• Preparation and submission of annual financial reports to the SUNAT
• Conducting taxation due diligence
• Advising on customs duties and import/export procedures