Peru taxes residents on worldwide income and non-residents on Peru-source income only. Peru operates a self-assessment system, with the tax authority (SUNAT) conducting post-filing review and audit within a statutory 4-year limitations period for reassessment.
The Peruvian tax year is the calendar year. Individual and corporate filing deadlines are staggered across March-April of the following year based on the taxpayer's RUC (tax ID) final digit, confirmed annually by SUNAT.
Peru's headline corporate income tax (CIT) rate is 29.5%.
The headline personal income tax (PIT) rate is 30%.
The standard VAT/GST (or equivalent consumption tax) rate is 18%.
A foreign individual is domiciled in Peru for tax purposes if resident or present in Peru for more than 183 calendar days within any 12-month period (temporary absences of up to 183 days don't interrupt continuity); Peruvian nationals are presumed resident unless they demonstrate foreign fiscal domicile. Domiciled status is fixed at the start of the fiscal year - a change during the year takes effect only from January 1 of the following year. Domiciled taxpayers are taxed on worldwide income; non-domiciled taxpayers only on Peru-source income, generally at a flat 30% rate on gross income with no expense deductions.
A non-Peruvian entity has a Peruvian permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Peru on the entity's behalf, following the OECD Model Treaty definition as applied under Peruvian domestic law and any applicable tax treaty - noting a recently-modified multilateral convention (affecting treaty relationships including Canada, Chile, South Korea, Portugal, and Mexico) has introduced new PE-relevant anti-abuse provisions requiring reassessment of pre-existing structures.
Peru's CFC regime (Regimen de Transparencia Fiscal Internacional, RTFI, Legislative Decree 1120) has been in force since 1 January 2013 and applies to BOTH individuals and corporate entities: any Peru-domiciled taxpayer subject to Peruvian tax on worldwide income - whether a natural person (persona natural) or a legal entity (persona juridica) - who owns a non-domiciled controlled entity (ECND) is covered. A non-domiciled entity is an ECND where a Peru-domiciled taxpayer, alone or together with Peru-domiciled related parties, holds more than 50% of the entity's capital, results, or voting rights as of the entity's fiscal year-end, and the entity's passive income exceeds specified thresholds. Passive income (dividends, interest, royalties, capital gains, financial investment income) is attributed and taxed currently regardless of distribution; genuine active business income is excluded. Foreign-source losses cannot be offset against Peru-source income.
Peru's original 3:1 debt-to-equity thin capitalization rule (which, from 2019-2020, briefly extended to both related and unrelated-party loans) was replaced effective January 1, 2021 by an EBITDA-based rule: net interest exceeding 30% of the prior year's tax-EBITDA is non-deductible, applying to both related and unrelated party debt. Disallowed interest carries forward up to four years, always subject to the same 30% cap.
Peru does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Peru does not have a comprehensive ATAD2-style anti-hybrid regime, though Peru's own CFC regime (Regimen de Transparencia Fiscal Internacional, RTFI - see CFC section above) addresses related cross-border deferral concerns for both individuals and corporate taxpayers.
No foreign bank account or foreign financial asset reporting regime exists requiring residents to separately disclose foreign accounts; foreign income is reported through the standard annual tax return.
Peru does not provide a broad participation exemption for foreign dividends in the European sense; dividends from a foreign subsidiary are generally taxable, with relief from double taxation available through Peru's foreign tax credit system rather than an outright exemption, and with specific rules coordinating this against Peru's own RTFI (CFC) regime to avoid double-counting previously-attributed profits.
Peru has a real foreign tax credit regime available to both individuals and companies for foreign tax paid on foreign-source income also taxed in Peru, capped at the Peruvian tax otherwise due on that income, with a credit available for foreign tax already paid on RTFI (CFC)-attributed income specifically.
Peru maintains 9 comprehensive bilateral double tax treaties, per PwC's Peru corporate and individual tax pages: Brazil, Canada, Chile, Japan, South Korea, Mexico, Portugal, Switzerland, and the UK (the UK treaty entered into force January 21, 2026, effective from 2027). Separately, Peru participates in the Andean Community's Decision 578 multilateral framework (a source-based standard rather than the OECD Model) with fellow members Bolivia, Colombia, and Ecuador. Peru ratified the OECD's Multilateral Instrument (MLI) on June 9, 2025. Peru has no comprehensive tax treaty with the United States.