January 4, 2022
Peru enacts law allowing the President to enact various tax measures
The President may issue Legislative Decrees to enact certain tax measures, including regulating how silent partnerships are taxed and extending the value-added tax (VAT) exemption.
On 27 December 2021, Peru enacted Law 31380, approving the President’s request to enact tax measures. The law, however, narrowed the scope of those tax measures. For information about the President’s request, see EY Global Tax Alert, Peru’s President asks Congress for power to enact different tax measures, dated 3 November 2021.
Law 31380 allows the President, for 90 calendar days, to enact various tax measures. Under the law, the President may enact the following provisions:
Other tax measures
The President will only be able to enact these provisions through Legislative Decrees until 27 March 2022. However, the President had to enact income tax measures on or before 31 December 2021, for those measure to apply for tax year 2022. A Tax Alert on those income tax measures is forthcoming.
Out of scope
Congress did not grant the President the power to enact the following measures:
Mining tax regime
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