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July 20, 2023

Peruvian Tax Authority establishes guidelines for gains or losses derived from exchange-rate differences from foreign currency loans

  • Gains or losses derived from exchange-rate differences for credits in foreign currency obtained from transactions with nonresidents must be considered in the Income Tax determination, even if the interest has not been paid within the period established for filing the Annual Income Tax Report.
  • This Tax Alert highlights the criteria used by the Peruvian Tax Authority.
  • Taxpayers should contemplate the Tax Authority position on the matter when preparing the annual Income Tax determination.

On 20 June 2023, the Peruvian Tax Authority issued Ruling 000732023, establishing guidelines for gains or losses derived from exchange-rate differences from foreign currency loans.


According to Peruvian Income Tax Legislation, when calculating taxable income certain deductions are allowed for expenses that are necessary to produce taxable income and to maintain its source (Tracing Method). These deductions can include interest on debts, provided that they have been incurred to acquire goods or services related to obtaining or producing taxable income in the country or to maintain its producing source.

In addition, expenses incurred in doing business with nonresident entities will be deductible (i) in the year accrued if the expenses were paid or credited within the period established for filing the Annual Income Tax Return, or (ii) in the year in which they are effectively paid, if the expenses remained unpaid in the year incurred.

On the other hand, under Peruvian tax law, exchange-rate differences arising from transactions that are entered into for taxable activities and arising from credits obtained from financing are to be considered in the calculation to determine net income, whether the difference is recognized as profit or in loss.

Ruling 0000732023

The Peruvian Tax Authority concluded that the gain or loss derived from exchange-rate differences for credits in foreign currency, obtained from financing the taxable activity of a resident entity that accrued interest in the foreign currency, must be considered in determining taxable income, even if the interest has not been paid within the period established for filing the Annual Income Tax Return.


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

Ernst & Young Asesores Empresariales 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

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor


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