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09 March 2023 Peru amends regulations on temporary capital gain tax exemption for securities transferred through the Lima Stock Exchange by individuals
In 2015, Peru enacted Law 30341, which temporarily exempts from capital gains tax (CGT) the transfer of securities listed and traded through the LSE if the following requirements are met: In any given 12-month period, the taxpayer and its related parties must not transfer more than 10% of the shares issued by the company whose shares are being sold. In the case of American Depositary Receipts and Global Depositary Receipts, they should be considered the underlying shares. On 30 December 2022, Law 31662 extended the exemption through 31 December 2023, subject to the following requirements: The exemption granted now for individuals is only up to 100 Tax Units (approximately US$130,260). Any excess over this threshold is taxable in Peru. On 1 March 2023, Supreme Decree 027-2023 amended the regulations of Law 30341 amended by Law 31662, establishing the following: The exempted amount of 100 tax Units (approximately US$130,260) will be computed independently for each individual. For those transactions triggering a capital gain subject to the exemption, the exempted amount not deducted in the previous months of the fiscal year shall be deducted until it is exhausted. If there is an outstanding balance, the withholding tax shall be made only with respect to the transactions that have exceeded the exempted amount. Supreme Decree 027-2023 is effective as of 2 March 2023, the day following its publication in the Official Gazette. Roberto Cores | roberto.cores@pe.ey.com Ramón Bueno-Tizón | ramon.bueno-tizon@pe.ey.com Ingrid Zevallos | ingrid.zevallos@pe.ey.com Claudia Miranda | claudia.miranda@pe.ey.com Krizia Hurtado | krizia.hurtado@pe.ey.com Lucas Moreno | lucas.moreno1@ey.com Ana Mingramm | ana.mingramm@ey.com Pablo Wejcman | pablo.wejcman@ey.com Enrique Perez Grovas | enrique.perezgrovas@ey.com
Raul Moreno, Tokyo | raul.moreno@jp.ey.com Luis Coronado, Singapore | luis.coronado@sg.ey.com Document ID: 2023-5277 | |