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January 21, 2021
2021-5076

Peru-Japan income tax treaty will apply beginning 1 January 2022

On 30 December 2020, Peru’s President ratified the Peru-Japan income tax treaty through Supreme Decree No. 060-2020-RE.

On 14 January 2021, the Japanese Ministry of Foreign Affairs’ confirmed that Japan received notification that Peru had completed, on 30 December 2020, all necessary internal procedures for the treaty’s entry into force. Therefore, the following measures will apply:

  1. Entry into force and effective dates: The treaty will enter into force on 29 January 2021 (the 30th day after the date in which both countries had completed their internal procedure for ratifying/approving the treaty). In Japan, the treaty applies beginning on or after 1 January 2022. In Peru, the treaty applies to income taxes paid, credited to an account or accounted as an expense on or after 1 January 2022.
  2. Exchange of information: The treaty’s exchange-of-information provisions generally apply beginning 29 January 2021. For provisions on assistance in collecting taxes, the date will be confirmed through an exchange of diplomatic notes from the Governments of both countries.

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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 Abogados, Latin America Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific

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