Managing Corporate Taxation in Latin American Countries - Peru

Extract

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Managing Corporate Taxation in Latin American Countries - Peru

Footnote

1. Andean Pact Commission, Multilateral Act No. 578 of 2004.

Overview

1. Income Tax

1.1. General Aspects

1.1.1. Income Tax Rate.

30% applicable to domiciled companies including Peruvian branches of foreign companies. Dividends and profit distribution are subject to a 4.1% withholding (not applicable to non domiciled companies).

1.1.2. Taxable Base. Income derived from capital, work or both factors, are deemed as taxable income. This includes income from habitual sale of goods, capital gains, and results of transactions with third parties. All revenues are subject to income tax unless otherwise excluded by law.

1.1.3. Deductions.

As a general rule all costs and expenses are deductible provided that they are necessary to produc...

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