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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

Law 31380 allows the President, for 90 calendar days, to enact various tax measures. Under the law, the President may enact the following provisions:

Income tax

  • Modify the rates applicable to nonresidents for fishing and the commercialization of hydro biological resources
  • Regulate how associative contracts (silent partnerships) are taxed
  • Modify the fair market value rules applicable to securities

Stability contracts

  • Modify the rules for stability contracts on tax matters into which Peruvian companies with foreign investments and the Government enter (i.e., a contract that sets a fixed corporate income tax rate)


  • Extend the current VAT exemption

Tax Code

  • Improve the Peruvian tax authorities’ powers in audits

  • Simplify rules on tax claims and procedures

Other tax measures

  • Allow the Tax Authority to create profiles for each taxpayer and classify them based on their compliance with their tax obligations

  • Improve the Tax Identification Registry

  • Modify the rules for using the Peruvian banking system in transactions carried out by taxpayers

  • Modify the provisions in Peru’s legislation for taxes imposed by local governments

  • Establish an accelerated depreciation regime for the aquaculture and forestry sector

  • Modify the terms for the payment of customs duties, refunds and the creation of a special customs regime for isolated border towns

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:

Income tax

  • Modify the rates applicable to nonresidents for international activities performed partially in Peru and partially abroad

  • Modify the rules for deducting expenses and costs for purposes of determining the corporate income tax

  • Tax dividend distributions between Peruvian corporations

  • Modify the rates and deductions applicable to an individual’s labor income

Mining tax regime

  • Modify the mining tax regime, including revising the deductibility of the amount effectively paid as a mining royalty, a special tax on mining, and the so-called special mining burden


  • Establish a mechanism for the collection of VAT in the digital economy (online platforms)

  • Subject life insurance policies to VAT


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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