Executive Branch plans to request legislative powers on tax matters next week
23 septiembre 2021


On September 23, the Minister of Finance, Pedro Francke, announced that next week the Executive Branch will request legislative powers to Congress in order to legislate on economic and tax matters. He stated that a series of modifications in tax and fiscal matters will be sought. Also, the regulation would add a proposal to tax digital commerce and international digital platforms. In case this motion is approved by the Legislative, the Executive Branch will be able to legislate, for a limited period of time and through decrees, without the need to submit bills to Congress on these issues.

Francke explained that the tax reform would cover various aspects, from tax evasion to improving tax administration or changes in the mining sector. A simplified taxation system for micro and small companies (Mype in Spanish) will also be implemented. In this line, the Minister stated that he expects to reach a consensus with the Legislative, in order to have a “much more functional, fair and equitable tax system for all Peruvians”.

At the same time, the regulation would also include a proposal to tax the use of different digital platforms such as Uber, Disney Plus, Netflix, HBO Max, Prime Video, among others. Regarding the application of this tax Francke did not provide further details, but he did explain that they are working on its design, since this tax burden is not clearly established in the Peruvian legislation.