Lima GMT -5
EY
Av. Víctor A. Belaúnde 171 San Isidro Lima 27 Peru
Executive and immigration contacts
José Ignacio Castro
Valeria Galindo
Adriana Gianotti
Silvana Nieto
Nathaly Osorio
Andrea Phillips
Fabiola Jimenez
Gisell Martinez
Vanessa Cisneros
Claudia Alva
A. Income tax
Who is liable
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: jose-ignacio.castro@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: valeria.galindo@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: adriana.gianotti@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: silvana.nieto@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: nathaly.b.osorio.quesquen@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: andrea.phillips.lescano@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: fabiola.jimenez@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: gisell.martinez@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: vanessa.cisneros@pe.ey.com
+51 (1) 411-4444
Fax: +51 (1) 411-4445
Email: claudia.alva@pe.ey.com
Territoriality. Individuals resident in Peru are taxed on their worldwide income. Nonresidents are taxed on their Peruviansource income only.
In general, Peruvian-source income is any income obtained in Peru, regardless of the citizenship or residence of the individual.
Under the Peruvian Income Tax Law, Peruvian-source income includes, among other items, the following:
• Income earned for services rendered in Peru or for civil, commercial or business activities performed in the country, regardless of where it is paid
• Personal work-related income
• Income earned for selling, transferring or renting property or land located in Peru
• Income earned for selling, transferring, renting assets or rights, if such assets are physically located in Peru or such rights are used economically in Peru
• Royalties if they originate in assets or rights that are economically used in Peru or if the payer is a Peruvian resident
• Capital gains, interest, commissions, premiums and any amount additional to the agreed interest with respect to loans, credits or other financial transactions, if the capital is allocated or economically used in Peru or if the payer is a Peruvian resident
• Dividends and any other forms of profit-sharing distribution, if the payer (company or society) is domiciled in Peru
• Income earned from the sale, transfer or redemption of shares, participations, bonds, securities and other instruments representing the capital stock
• Income received for serving as a member of a board (performing abroad) if the payer company is domiciled in Peru
Definition of resident. Residence for income tax purposes is generally bound to the physical presence of an individual in Peru. In general, remaining more than 183 days in Peru results in residency and remaining 183 days abroad loses it. Residency of foreign citizens is acquired as of 1 January of the calendar year after the foreign citizen’s cumulative physical presence in Peruvian territory for more than 183 days, measured in any 12-month period. An exception applies to individuals who leave the country after signing a long-term contract (at least one year) or who hold a resident visa of the destination country. For these individuals, residence status changes immediately as of the departure date, from resident to nonresident.
Peruvian citizens who lost tax residence may regain such status on the first day of the first calendar year after they return to Peru, unless they do it temporarily and stay in Peru no more than 183 days in any 12-month period.
Income subject to tax
Employment income. Tax is imposed on all remuneration received by an employee in the form of salaries, bonuses, living and housing allowances, tax reimbursements, benefits in kind and any other fringe benefits at the rates set forth in Rates.
Salaries and remuneration received by nonresidents for services provided in Peru are taxed at a flat rate of 30%.
Self-employment and business income. Taxable self-employment income includes fees from independent professional, artistic and scientific activities, and from skilled occupations carried out by individuals, and is taxed at the rates set forth in Rates. Taxable income for self-employed persons equals their gross income minus a deduction of 20%. Such deduction is allowed up to a maximum of PEN123,600, which equals 24 annual tax units (ATUs; see Rates).
Nonresidents are allowed a deduction equivalent to 20% of gross income received as remuneration for services as an independent
year. For 2024, one ATU equals PEN5,150 (approximately USD1,355). The following are the tax rates.
Relief for losses. No relief is provided for nonbusiness losses incurred by individuals. However, individuals may select either of the following two systems to carry forward losses related to business income:
• Carrying forward losses to the following four consecutive years
• Carrying forward losses indefinitely, subject to an annual limit equal to 50% of the taxpayer’s taxable income in each year
Business losses may not be carried back.
B. Other taxes
Property tax. Property tax is imposed on urban and rural property and is payable by the property owners. The tax is administered and collected by the government of the locality where the property is located. The property tax base equals the total value of the taxpayer’s property in every jurisdiction. To determine the total value of the property, land tariff values and construction official unitary values in force as of 31 October of the preceding year and the depreciation tables formulated by the National Council of Valuation must be applied. Property tax is levied at progressive rates ranging from 0.2% to 1%.
Vehicle tax. Vehicle tax is imposed on automobiles, vans, buses and station wagons that are up to three years old. The tax is payable by the vehicle owners. If the ownership of the vehicle is transferred, the new owner becomes the taxpayer from 1 January of the year after the transfer. The tax base equals the original value on acquisition or importation of the vehicle, which cannot be lower than the value approved by the Ministry of Economy and Finance. Vehicle tax is levied at a rate of 1%. The amount of tax cannot be less than 1.5% of one ATU as of 1 January of the year in which the tax is payable.
Tax on financial transactions. The rate of the tax on financial transactions is 0.005%. This tax is generally imposed on debits and credits in Peruvian bank accounts.
C. Social security
Employees must contribute 13% of their salaries and wages to the government-sponsored pension fund (Oficina de Normalizacion Previsional, or ONP). Under an alternative system, employees must contribute approximately 12% of their salaries and wages to the Private Pension Funds Trustee (Administradora de Fondo de Pensiones, or AFP). These amounts must be withheld by employers under both the ONP and AFP systems. Employers must contribute to the Health Care Fund (HCF) at a rate of 9%. Following
Bulgaria Malta South Africa
Canada Marshall Islands Spain
Chile Mexico Suriname
Colombia Micronesia Sweden
Cook Islands Moldova
Switzerland
Croatia Monaco Taiwan
Cyprus Nauru Thailand
Czech Republic Netherlands Tonga
Denmark New Zealand Trinidad
Dominica Niue and Tobago
Ecuador North Macedonia Türkiye
Estonia Norway Tuvalu
Fiji Palau Ukraine
Finland Panama United Kingdom
France
Papua New United States
Germany Guinea Uruguay
Greece Paraguay Vanuatu
Grenada
Guyana
Hong Kong
Philippines Vatican City
Poland Venezuela
Portugal
Foreign nationals may enter Peru with temporary visas, which allow entry and stays for up to 183 days and are not renewable. In some cases, depending on the nationality, the term of the stay may vary. Temporary visas are issued to individuals with tourist, business, official, artistic, religious, student, employee, designated employee and crew member status.
The granting of a visa is subject to the judgment of the Peruvian migratory office. All temporary visas are required before entry into Peru. If the expatriate will obtain the visa before entering Peru, he or she needs to pick up the visa at the Peruvian Consular Office, which can also evaluate whether a visa should be issued to the expatriate. The essential requirements for obtaining a visa are a passport and evidence of transitory status.
Foreign nationals holding the following visa statuses receive temporary visas:
• Business visas, granted to foreign nationals who enter Peru temporarily to carry out business activities that do not generate Peruvian-source income and who do not intend to establish permanent residence. Business visas are also granted to foreigners who will perform technical assistance services. These foreign nationals are permitted to sign agreements and undertake transactions. This visa can be granted for up to 183 days, and is not renewable.
• Work visas for designated employees who have an assignment for less than one year, granted to foreign nationals who are sent to work in Peru by their foreign company employers to perform agreed services. This visa can be granted for up to 183 days and is renewable for up to one year.
• Work visas for employees who have a work contract with a Peruvian entity for a term of less than one year and for foreign nationals who enter Peru to carry out activities related to their own profession. This visa can be granted for up to 183 days and is renewable for up to one year.
• Diplomatic and consular visas, which can be granted for up to a term established by the Ministry of Foreign Affairs.
• Tourist visas, granted to foreign nationals who visit Peru for recreational purposes and who do not intend to immigrate or to enter into remunerated activities. This visa can be granted for up to 183 days and may not be extended. A foreign national who is in Peru on a tourist visa can change his or her migratory status while in Peru. Depending on the nationality of the foreigner, the term of the visa can be up to 90 days and obtained on arrival at immigration control.
• Student visas, granted to foreign nationals who enter Peru to study in educational institutions recognized by the Peruvian government and who do not generate Peruvian-source income, except for professional practices or vacation jobs approved by a corresponding policy-making body. This visa can be granted for up to 90 days and is renewable up to 90 extra days.
• Artist visas, granted to foreign nationals who enter Peru with the purpose of carrying out approved remunerated artistic or performance-related activities and who do not intend to establish a permanent residence in Peru. This visa can be granted for up to 183 days and is renewable for one additional period.
G. Work visas and self-employment
Domestic and foreign companies established in Peru may employ foreign nationals up to a maximum of 20% of the total personnel of a company. Salaries paid to foreign nationals may not exceed 30% of the total payroll. Specialists or management personnel of a new industry may be exempt from these limits, among others.
The following individuals are not considered foreign nationals for purposes of hiring foreign personnel:
• Foreigners with Peruvian spouses, ascendants, descendants or siblings
• Foreigners who have immigrant visas
• Foreigners whose country of origin has a treaty of labor reciprocity or a treaty of double nationality with Peru
• Personnel from foreign transport enterprises that operate under a foreign flag
• Personnel from foreign enterprises or multinational banks that have a special regulation
• Foreign personnel under bilateral or multilateral agreements honored by the Peruvian government who render services in the country
• Foreign investors, regardless of whether they have waived the right to repatriate capital investments or profits, if an investment of no less than PEN500,000 (approximately USD138,000) is maintained throughout the term of their contracts
• Artists, athletes and, in general, those who work in public events in the country for a maximum of three months during a calendar year
Documents that must be submitted to obtain a work visa include the following:
• An application addressed to the Ministry of Labor
• Affidavit of limiting percentages subscribed by the employer, attesting that the employment agreement complies with the limits set under the law for hiring foreign personnel (other documents may apply with respect to employees exempt from these limits)
• Employment agreement with all of the mandatory clauses for a term of one year or more (limit of three years)
• Affidavit stating that the expatriate is qualified to perform the service; a copy of his or her professional degree, technical study or work certificates must be in his or her personal file
• Copy of the passport or the foreign card (the passport must have a minimum validity of six months at the moment of the visa application)
• Interpol criminal records
• Negative criminal records request in home country apostilled
• Copy of the company’s tax registration
• Receipt for payment
• Document issued by the Peruvian Public Registry proving that the Peruvian legal representative of the company is authorized to submit work contracts
Employment agreements are approved by the Ministry of Labor automatically. The hired person may begin to render services after the work visa is obtained. This visa can be granted as a temporary or resident visa, depending on the term of the work contract with the Peruvian company.
The Peruvian immigration office approves resident work visas in approximately 30 working days. This visa can be granted temporal or resident and can be renewed. Temporal visas have a maximum duration of one year, while resident visas can be renewed annually with no limit.
A foreign national with a valid work visa may change employers after notifying the Ministry of Labor and the migratory office.
For a work visa for designated employees, the following documents must be filed with the immigration authorities:
• A service agreement between the foreign company and the local company, apostilled or legalized by the Peruvian consulate of the place where the document was issued
• A letter of assignment from the foreign company, apostilled or legalized by the Peruvian consulate of the place where the document was issued
• Interpol criminal records for individuals who apply for a resident visa
• Criminal records request in home country apostilled
• A letter from the local company, signed by the legal representative
• A copy of the passport (the passport must have a minimum validity of six months at the time of the visa application)
The Peruvian immigration office approves designated work visas in approximately 30 working days. This visa can be granted temporal or resident and can be renewed.
Self-employed foreign nationals are required to obtain work permits in Peru.
H. Residence visas
Foreign nationals holding the following visa status may receive residence visas:
• Employees who have a work contract with a Peruvian entity for a term of one to three years and foreign nationals who enter