PERÚ: INCOME TAX EXCEPTIONAL REGIME FOR UNDISCLOSED AND NON-REPORTED INCOME.
Today, the Peruvian Official Gazette published Law No. 32,201 which sets forth an Income Tax Exceptional Regime promoting the formalization of the economy and the widening of the fiscal base of individual – undivided estates – marital partnership taxpayers domiciled in the country during 2022 who decide to report or repatriate and invest in Perú their non-reported income for purposes of regularizing their tax obligations generated by December 31st, 2022.
This exceptional regime applies to:
- Non-reported income subject to Income Tax – in terms of Article 52 of the Income Tax Law approved by Supreme Decree No. 179-2004-EF -.
- The non-withheld tax connected to the non-reported taxable income stated in 1 above.
- Unjustified capital/wealth increase held by the abovementioned date.
The taxable base of this Exceptional Regime comprises the net income earned by December 31st, 2022, that qualifies as non-reported income in terms of the above. Special rules apply for cash in the national or foreign financial system, identifiable goods, or rights.
The applicable rates are:
- 10% over the taxable base but for the equivalent part of the cash repatriated into the country.
- 7% in the case of repatriated cash applied over the amount of cash repatriated.
The repatriation requirement shall be considered complied with if the repatriated cash is kept and invested in the country for at least 12 months as of the tax return filing dates. If this requirement is not met, the 10% rate shall apply.
For purposes of adhering to this Regime, taxpayers must:
a. File a tax return by December 29th, 2024, indicating the net income constituting the taxable base, the date and acquisition value of the goods or rights in the country or abroad, and the amount of cash and the national or foreign financial/banking institution where it is deposited. If the acquisition value is in foreign currency, the exchange rate indicated in the regulations shall be the one to be considered.
b. Make the complete payment of the reported tax on the date that the tax return is filed.
Adhesion to this Regime shall imply compliance with the Income Tax obligations concerning the non-reported income and tax/customs criminal actions concerning the said income shall not be able to be commenced, reported, or pursued.
The Tax Authorities may request information concerning this Regime’s adhesion requirements for one year as of January 1st, 2025.
Other Considerations:
- Goods, assets, or rights reported according to subsection a) of paragraph 8.1 of Article 8 of this Law which are under the name of an individual or corporate agent or intermediary must be transferred to the person adhering to this Regime before the relevant adhesion. This adhesion shall not be considered a sale for Income Tax and Alcabala Tax purposes.
- Income attributed or distributed to the person adhering to this Regime by a non-domiciled controlled entity that does not report as an intermediary or agent for this regime, the transfer to the adhering person is not mandatory. If the transfer is made, it shall be considered a sale for Income Tax purposes.
- The acquisition value referred to by paragraph 8.1 of Article 8shall be considered a computable cost of the relevant goods or rights for Income Tax purposes.
- The above shall not apply to cash, goods, or rights transferred to a trust valid by December 31st, 2022.
- Payments made under this Exceptional Regime shall not be able to be used as a credit against any tax, nor deducted as an expense for Income tax or any other tax purposes.
- Adhesion to this exceptional regime does not prevent the application of anti-money laundering regulations.