Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 26, 2020
2020-5471

Peruvian Tax Authority establishes procedure for reporting certain information required for claiming the indirect foreign tax credit

On 20 March 2020, the Peruvian Tax Authority published Resolution 059-2020 (the Resolution), establishing the procedure taxpayers interested in claiming the indirect foreign tax credit must follow to communicate certain information to the tax authority. The Resolution is effective 21 March 2020.

Background

On 1 January 2019, Peru amended its Income Tax Law to include an indirect foreign tax credit. A Peruvian entity receiving foreign income as dividends or profits from nonresident entities may deduct:

  • The income tax withheld from the dividends or profits distributed (direct credit)

and

  • The income tax paid by the first-tier nonresident entity (i.e., the entity in which the Peruvian entity is a direct shareholder) and the second-tier nonresident entity (i.e., the entity directly owned by the first-tier entity) (indirect credit), provided certain conditions are met

To qualify for the indirect foreign tax credit, the Peruvian entity must directly or indirectly own 10% of the shares of the first-tier nonresident entity or second-tier nonresident entity for 12 months before the date in which the dividends are paid. The second-tier nonresident entity must be a resident of a country that has an information-exchange agreement with Peru or is a resident of the same country as the first-tier nonresident entity.

Additionally, taxpayers must communicate to the Peruvian tax authority the equity participation in the foreign companies, the profits obtained by the first and second tier nonresident companies, and the dividends distributed by them.

Communication to the Peruvian Tax Authority

Resolution 059-2020, effective 21 March 2020, establishes that taxpayers should communicate the following information through the Tax Authority’s online platform (SUNAT Virtual) in Excel format:

  1. Equity participation in foreign companies
  2. Profits obtained by the first- and second-tier nonresident companies and the dividends distributed by them

Once the information is entered, the taxpayer’s legal representative should print and sign the forms, and submit them in PDF to the following e-mail address: creditoindirecto@sunat.gob.pe. The legal representative also should attach the Excel file with the information contained in the PDF to the email.

If the information does not comply with these rules, it will be considered as not submitted.

The information must be submitted at the same time as the annual income tax return and may be modified by entering all the data required in the format again.

Taxpayers that submitted their information before 21 March 2020, in a different form from that established must submit it again to comply with the provisions of Resolution 059-2020.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Asesores S.C.R.L, Lima
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more