Executive Branch submits request to Congress for powers to legislate on tax, fiscal and financial matters
5 noviembre 2021

PERU

On October 27, the President of Peru, Pedro Castillo, presented to Congress a bill that proposes to delegate to the Executive Branch the power to legislate on tax, fiscal and economic reactivation matters, for a period of 120 calendar days. With this proposal, the Executive Branch seeks to make a series of modifications in tax and fiscal matters. Among the main measures, the Executive Branch plans to tax digital platforms, as well as to amend the General Customs Law and the Customs Offences Law, in order to facilitate and provide predictability to foreign trade operations. It is expected that the bill will be sent to committee in the coming days.

Below you will find more information on the measures proposed by the Executive Branch:

  • Set up a mechanism for collecting the General Sales Tax for transactions carried out with non-domiciled taxpayers in the digital economy and adapt the tax regulation, as appropriate, which includes amending the rules of regularity and the criteria of employment or consumption in the country.
  • Amend the quantitative aspect, the determination of income tax for domiciled taxpayers with regard to earned income and income from foreign sources, including the inclusion of a higher marginal rate and the modification of the limit of twenty-four Tax Units (UIT) and the 20% deduction.
  • To extend the validity of the General Sales Tax exemption applicable to the issuance of electronic money, as well as to rationalise the scope of the General Sales Tax exemption for the importation of fast delivery or equivalent shipments made under normal conditions
  • Modify the law for the fight against evasion and for the formalization of the economy.
  • Amend the General Customs Law and the Customs Offences Law to facilitate and provide predictability to foreign trade operations, improve special customs regimes, streamline processes and optimise the repression of customs offences, including aspects of tax and customs obligations, refunds, customs offences and their infractions.
  • Improve and consolidate the rules, criteria, scope, sources and mechanisms of financing, functions, competencies and processes applicable to the modalities of Public Private Partnerships and Assets in order to promote and protect projects and investments developed within the framework of the National System for the Promotion of Private Investment.

 

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