PERU

On December 27, the Peruvian Congress enacted the law that delegates to the Executive Branch the power to legislate on tax, fiscal, financial and economic reactivation matters, for a period of 90 days. The approved norm grants the government the power to issue measures to fight tax evasion and avoidance, promote the use of means of payment, strengthen the management processes and technological innovation of Banco de la Nación, among others. However, the Government will not be able to modify taxes to individuals or tax digital platforms. The law is already in force.

Below you will find more information on the powers granted to the Executive Branch:

• To amend the Income Tax Law and other regulations to ratify and specify the non-deductibility of disbursements linked to conducts typified as crimes, such as the crime of bribery, in all its modalities. As well as to modify the provisions established on the basis for requiring reliable and/or dated documents to prove that there is no unjustified increase in assets.
• Modify the law for the fight against evasion and for the formalization of the economy, in order to promote the use of means of payment, and reduce the amount up to 500 dollars or 2,000 soles, from which means of payment are used.
• Facilitate the existence of entities or offices whose operations are up to 100% digital in the financial system, as well as allowing publications to be made by virtual or digital means.
• Extend the validity of the exoneration of the General Sales Tax applicable to the issuance of electronic money, as well as the benefits established in the norm on the refund of taxes levied on acquisitions with donations from abroad and imports of diplomatic missions and others.
• Modify the General Customs Law and the Customs Offenses Law to facilitate and provide predictability to foreign trade operations, improve special customs regimes, streamline processes and optimize the repression of customs offenses, including aspects of tax obligations, customs, refunds, typicity of customs offenses and their infractions.
• Adapt the regulations applicable to companies in the financial system, related to the composition of effective equity to the Basel Ill standard, in order to improve the quality of effective equity and strengthen the solvency and stability of the Peruvian financial system, in order to protect savers.