Peru

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Business Environment

Business Practices

General information: IDRC, Situation and Promotion of SMEs in Peru
Doing Business , (World Bank)
Opening hours and days: Banks are open from Monday to Saturday, from 9 am to 1 pm and from 3 pm to 6 pm Shops are open from Monday to Saturday from 9 am to 8 pm. Public administrations from Monday to Friday from 9 am to 5 pm (in winter) and from 8 am to 3 pm (in summer).

Public holidays

New Year's Day	1 January
Monday Thursday and Good Friday	variable
Labor Day	1 May
Feast of St Peter and St Paul	29 June
Independence Day celebrations	28 and 29 July
Saint Rosa of Lima	30 August
Angamos Battle	8 October
All Saints Day	1 November
Immaculate Conception	8 December
Christmas Day	25 December

Holiday compensation: If a public holiday falls on a Saturday or Sunday, the Monday is a holiday instead.

Periods when companies usually close

Summer

Company activity slows down during the summer over a period between the end of December and the end of February.

Accounting Rules

Tax year: The fiscal year begins on 1 January and ends on 31 December of the same year.
Accounting standards: IAS, IFRS
Accounting regulation bodies: Dirección nacional de contabilidad publica
(National Directorate of Public Accounting)
Colegio de Contadores Publicos de Lima
(College of Public Accountants in Lima)
Accounting reports: As the structure of accounts is inspired by various models, it is difficult to establish a precise plan of their presentation.
Publication requirements: Accounts must be established in national currency in accordance with the new accounting plan introduced in 1987. Accounting must be kept in accordance with current standards but companies have no obligation in terms of structure for annual reports : nevertheless, they have to publish a balance sheet, a profit and loss account and annexes which should be guaranteed by an independent auditor.
Professional accountancy bodies: National Directorate of Public Accounting
Certification and auditing: The certification of accounts became compulsory in Peru in 1974, with the creation of the "Comision Nacional de Empresas y Valores". The national accounting system was implemented in 1987 to harmonize and standardize operations and financial results.
Accounting news: El Peruano
El Comercio
Gestion on line
La Industria
Sintesis
Acesor
Revista Empresa Privada

Tax Rates

Consumption taxes

Nature of the tax: Value added tax (VAT).
Tax rate: VAT standard rate is 19%.
Reduced tax rate: There is a reduced VAT rate of 2% for certain products and some exemptions (0%) for foodstuffs, urban passenger transport, the international transport of cargo, life assurance polices, some financial products, books, construction and maintenance of ships.
Other consumption taxes: Peru has established a consumption tax, "Impuesto Selectivo al Consumo", for the sale and import of goods such as cigarettes (125%), alcoholic drinks (20%); sparkling and mineral water, luxury items, fuel (fixed sum), gambling and betting.

Corporate taxes

Company tax: 30%
Capital gains taxation: In Peru, an entity is considered to be resident when it is registered in the country. The resident companies are taxed on their global incomes. The non-resident companies and the branches of foreign companies are only taxed on their incomes generated in Peru. The incomes generated abroad by the residents are submitted to the same tax treatment than those generated in Peru. All the incomes generated by the company, including capital incomes, are submitted to taxation. The distribution of dividends between foreign companies is not taxed. The foreign dividends received by a Peruvian company are included in the tax base and taxed at corporate normal rate with a tax credit on foreign taxes paid on the dividends.
Main allowable deductions and tax credit: In Peru, the following are exempt: capital gains deriving from the alienation of personal property on the Registro Publico del Mercado de Valores through negotiation mechanisms provided for by the "Ley del Mercado de Valores", the alienation of securities and contracts on goods and services carried out in the commodity markets and the re-evaluation of personal securities issued through public offer, by legal entities incorporated or established in Peru.
Other corporate taxes: Municipal authorities tax real estate at 0.2%, 0.6% or 1%, according to the value of the property. The employer contributes 27% to the social security of his employees. The transfer of real estate is taxed at 3%. A temporary Tax on net Assets of 0.5% is levied on companies whose total assets are over 1 million PEN.

Individual taxes

Tax rate

Individuals income tax	Progressive rate which is made according to a system of annual units. One unit is equal to PEN 3,100.
0 to 7 units	0%
7 to 34 units	15%
34 to 61 units	21%
Beyond 61 units	30%

Allowable deductions and tax credit: The taxpayers benefit from various deductions according to the nature of their income (salary, pension, etc.). For example, the employees of a company benefit from tax relief of 20%.
Special expatriate tax regime: No

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the conventions signed
Whithholding taxes: Dividends: 4.1%, Interests: 30%, Royalties: 30%

Sources of fiscal information

Tax Authorities: Fiscal administration of Peru (in Spanish)

Intellectual Property

National organizations: Peru signed the Paris Convention concerning the protection of industrial property and the agreement which establishes the World Intellectual Property Organization (WIPO).
The INDECOPI is the Peruvian organization responsible for the protection of patents and trademarks.
Regional organizations: As a member of the Andean Community, Peru is subject to the legislation of the Andean Community regarding intellectual property which controls industrial property (Régimen común de Propiedad industrial), copyright and related rights.

National regulation and international agreements

Type of property and law	Validity	International agreements signed
Patent Industrial Property Law (Legislative Decree No. 823)	20 years
Trademark Industrial Property Law (Legislative Decree No. 823) 23 April, 1996	10 years, renewable for consecutive periods of 10 years	Trademark law treaty Nice agreement Protocol relating to the Madrid Agreement
Design Industrial Property Law (Legislative Decree No. 823)	10 years
Copyright Industrial Property Law (Legislative Decree No. 823)	20 years
Industrial Models Industrial Property Law (Legislative Decree No. 823)	10 years

Legal Framework

Independence of justice: Third party opinion believes Peru’s judicial system is not completely independent though the government is trying hard to change this. General perception of the judicial system is that it is inefficient, overloaded and riddled with bureaucratic and political influence.
Equal treatment of nationals and foreigners: It is considered that foreign nationals cannot expect an impartial trial from the country’s judicial system.
The language of justice: There are two judicial languages used in the country: Spanish and Quechua.
Recourse to an interpreter: Having an interpreter is possible.
Sources of the law and legal similarities: The main source of the law in Peru is the constitution of 1993. The country’s legal system is based on a civil law system. Peru accepts compulsory International Court of Justice (ICJ) jurisdiction but with reservations.
Checking national laws online: Teleley (Portal Legal del Perú)
Peruvian legislation (Digital archives)

Standards

National standards organizations: Instituto nacional de Defensa de la Competencia y de la Proteccion de la propiedad intelectual
Integration in the international standards network: The Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual - INDECOPI (National Institute for the Defense of Competition and Intellectual property), is integrated in the Pan American Commission for Technical Standards at the regional level, and is a member of the International Organization for Standardization and the International Electrotechnical Commission.
Classification of standards: Several companies certified by the Technical Regulation Commission of INDECOPI are authorized to issue a certificate of conformity with Peruvian standards. These companies are the following: INASA, SGS del Peru, BSI Inspectorate Peru, EQUAS S.A. and SG Nortek.
Online consultation of standards: All information about Peruvian standards can be found on the INDECOPI website.
Certification organizations: Instituto nacional de Defensa de la Competencia y de la Proteccion de la propiedad intelectual (Institute for the defense of competition and protection of intellectual property).

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