Personal income tax
The tax year in Peru follows the calendar year and income taxes must be declared within three months of the end of the tax year. In Peru taxable income is classed as income from either self-employment or employment. You will be fined if you do not file your tax return or you file it late.
Peru uses progressive taxation on personal income. There are currently two tax brackets, 15% for an annual income of up to 50,000 Soles and 30% for an income over 50,000 Soles. Peruvian income tax is collected by the SUNAT (Superintendencia Nacional de Administración Tributaria).
Up to 20% of the salary paid to its employees by a company is exempt from tax. Non/residents receive a tax rate of 30% and are taxed at a flat rate of an official tax unit known as the UIT (Unidad Impositiva Tributaria) is used to efficiently calculate tax liability.
VAT and corporation tax
VAT tax stands at 18%, however exporting goods out of Peru is exempt from this tax. Goods classed as luxury goods in Peru can be subject to a tax as high as 118%.
The basic Peruvian corporation tax rate stands at 30% however in the Amazon region it is 10%. Smaller companies that turn over less revenue can be imposed a tax of 2.5%. It is important to note that Peruvian franchises or branches of international companies are subject to Peruvian tax rates regardless of the location of their headquarters.
Capital gains on property
Capital gains tax for non-residents who are selling property in Peru is set at 30%. This is calculated by the difference between the investment capital and the market value of the property.