Understanding corporate income tax and other business taxes in Peru is crucial for companies operating within the country. Alongside corporate income tax, businesses should be aware of other taxes, such as VAT, withholding tax, selective consumption tax, and potential municipal taxes. It is advisable to consult with a tax professional or refer to the official website of the Peruvian Tax Authority for the most accurate and up-to-date information. By fulfilling their tax obligations, businesses can operate in compliance with Peruvian tax laws and contribute to the growth and development of the country's economy while benefiting from its diverse business opportunities.
Corporate Income Tax:
Peru imposes corporate income tax on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in Peru is a flat rate of 29.5%. This rate applies to both resident and non-resident companies engaging in commercial, industrial, or professional activities in the country.
Types of Business Taxes in Peru:
- Value Added Tax (VAT): Peru operates a Value Added Tax (VAT) system, known as "Impuesto General a las Ventas" (IGV). The standard VAT rate in Peru is 18%. Certain goods and services may be subject to reduced rates of 5% or even exempted from VAT.
- Withholding Tax: Peru imposes withholding tax on certain types of payments made to non-residents, such as dividends, interest, royalties, and technical service fees. The withholding tax rates vary depending on the nature of the payment and may range from 4.99% to 30%, depending on tax treaties and exemptions.
- Selective Consumption Tax: Peru levies a Selective Consumption Tax (ISC) on the consumption or sale of specific goods, including alcoholic beverages, tobacco, and certain luxury goods. The tax rates vary depending on the type of product.
- Municipal Taxes: Municipalities in Peru have the authority to levy municipal taxes on businesses operating within their jurisdiction. These taxes may include local business taxes, property taxes, and other fees or charges determined by the respective municipality.
Peruvian Tax Authority Website:
For comprehensive and up-to-date information on business taxes in Peru, it is recommended to visit the official website of the Peruvian Tax Authority, the Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT).
Peruvian Tax Authority Website: Official Peruvian Tax Authority Website
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