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August 2, 2023

Peru enacts regulations on preferential depreciation rates for buildings, construction and hybrid and electric vehicles

  • A new Supreme Decree establishes regulations for Law 31652, which incorporated preferential depreciation regimes for buildings and construction, as well as for hybrid and electric vehicles.
  • This Alert highlights key aspects of the regulations.

Supreme Decree 156-2023-EF, published on 21 July 2023, establishes regulations for the application of Law No. 31652, which incorporated the option for taxpayers to apply accelerated depreciation for buildings, construction and hybrid and electric vehicles, from 1 January 2023.


Law 31652 was published on 29 December 2022, establishing a preferential depreciation regime applicable to buildings, construction, and electric and hybrid vehicles (Preferential Depreciation Regime). Highlights of the regime follow.

Buildings and construction

Taxpayers are entitled to use a maximum depreciation rate of 33.33% if (i) the construction began no earlier than 1 January 2023 and (ii) at least 80% of the construction is completed by 31 December 2024. Note that the 33.33% rate is not applicable if the assets were totally or partially built before 1 January 2023.

Hybrid and electric vehicles

Taxpayers are entitled to use a maximum annual depreciation rate of 50% for hybrid and electric vehicles acquired in 2023 and 2024.

Supreme Decree 156-2023-EF

Supreme Decree 156-2023-EF introduces the following regulations to the Preferential Depreciation Regime.

Buildings and construction

  • To calculate the 80% percentage of work completed on a construction project, as required under Law 31652 for the special rate of 33.33% to apply, the following formula must be used:

Percent of completion = Cost incurred / Total estimated cost of the project

Percent of completion


Percentage of work progress

Cost incurred


Cost incurred up to 31 December 2024 for the construction of the assets subject to the Special Depreciation Regime for buildings and construction

Total estimated cost of the project


Estimated total cost of the project up to the date of obtaining the conformity of the work or the document established in the Law.

  • If the percentage of completion is less than 80%, it is understood that the requirement was not fulfilled.

Mining industry

Regarding construction of plants and other components of a mining concession, the following must be considered:

  • The start of construction occurs once the mining concession is approved and construction authorization is granted.
  • The end of construction occurs when the correspondent Authority issues the approval of verification inspection of the construction of the works and installations of the approved project.
  • Depreciation of buildings and constructions will not apply when a license or construction authorization is not granted.

Hybrid and electric vehicles

  • The depreciation accepted for tax purposes cannot exceed the maximum annual rate of 50%, even if the depreciation in the accounting records is lower. In addition, the tax depreciation of a fixed asset will not be accepted if the depreciation is not duly registered in the accounting records within the corresponding taxable year.

The Supreme Decree is effective as of 22 July 2023.


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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