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October 10, 2022
Peruvian Congress ratifies Convention to Harmonize Double Tax Treaties of Pacific Alliance
On 5 October 2022, the Peruvian Congress enacted Legislative Resolution 31580 ratifying the Convention to Harmonize the Double Tax Treaties of the Pacific Alliance countries (hereinafter the Convention).
On 14 October 2017, Chile, Colombia, Mexico and Peru signed the Convention that will harmonize the tax treatment of pension funds under the Double Tax Treaties of the Pacific Alliance. The Convention was pending ratification by Peru.
For Peru, the Convention amends the Double Tax Treaty signed with Chile and Mexico to establish the tax treatment applicable to pension funds. For the specific case of Colombia, as Peru does not have a Double Tax treaty signed with Colombia but a Multilateral Agreement on Double Taxation of the Andean Community, the Convention introduces a Protocol applicable to Peru and Colombia to harmonize the tax treatment exclusively for pension funds.
The main aspects of the Convention are:
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