Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

January 18, 2023
2023-5069

Peru enacts new rules for tax incentives of expenses related to research and development

  • Law 31659 increases the deduction rates of expenses related to Scientific Research, Technological Development, and Technological Innovation. These tax incentives will be valid until 31 December 2025.

On 30 December 2022, Peru enacted Law 31659, increasing the deduction rates for Scientific Research, Technological Development, and Technological Innovation expenses (R&D expenses). The new tax incentives are effective as of 1 January 2023 until 31 December 2025.

Background

Law 30309 introduced a temporary tax incentive allowing taxpayers to deduct R&D expenses, according to the following rules:

  • Taxpayers with net income not exceeding 2,300 Tax Units (approx. US$2,996,000) were entitled to deduct: (i) 215%: if the R&D project was carried out directly by the taxpayer or through a Peruvian R&D center; or (ii) 175%: if the R&D project was carried out through non-Peruvian R&D centers.

  • Taxpayers with net income exceeding 2,300 Tax Units were entitled to deduct: (i) 175%: if the R&D project was carried out directly by the taxpayer or through Peruvian R&D centers; or (ii) 150%: if the R&D project was carried out through non-Peruvian R&D centers.

The tax incentives expired on 31 December 2022.

Law 31659

Law 31659 increased the deduction rates for R&D expenses and has extended such tax incentives until 31 December 2025, as follows:

  • Taxpayers whose net income does not exceed 2,300 Tax Units are entitled to deduct: (i) 240%: if the R&D project is carried out directly by the taxpayer or through a Peruvian R&D center; or (ii) 190%: if the R&D project is carried out through non-Peruvian R&D centers.

  • Taxpayers whose net income exceeds 2,300 Tax Units are entitled to deduct: (i) 190%: if the R&D project is executed by the taxpayer itself or by a Peruvian R&D center; or (ii) 160%: if the R&D project is executed by a non-Peruvian R&D center.

Law 31659 is effective as of 1 January 2023 until 31 December 2025.

_________________________________________

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

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more