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

July 18, 2024
2024-1400

Peruvian Tax Authority incorporates new scenarios as high-risk schemes under GAAR

  • The Peruvian Tax Authority has published an updated version of the list of high-risk schemes for tax planning that could be challenged under the Peruvian General Anti-Avoidance Rule (GAAR).
  • The updated list contains the 13 situations from the second version of the list and 11 new situations that are considered high-risk.
  • Taxpayers engaging in the respective transactions could be subject to challenge under Peru's GAAR.
 

On 9 July 2024, the Peruvian Tax Authority published on its official website an updated version (third version) of the list of high-risk schemes for tax planning that could be challenged under the Peruvian GAAR.

Background

In February 2020, the Peruvian Tax Authority published the initial version of the list with five initial tax planning situations (high-risk schemes) that would generate the application of the GAAR.

In October 2022, the Peruvian Tax Authority updated the mentioned list (second version) by incorporating 13 new scenarios that are considered as high-risk.

Updated list                                         

The Peruvian Tax Authority has now updated the second version of the list with the publication of a third edition, which includes the 13 schemes of the previous versions and incorporates 11 new situations.

Specifically, the updated list includes the following 24 high-risk schemes that could be challenged under the Peruvian GAAR:

  1. Deduction of payment of royalties in a brand/trademark use assignment scenario
  2. Transfer of a Peruvian company using a trust or similar entity
  3. Re-domiciliation of a company and use of Double Tax Treaties
  4. Assignment of trademarks and capitalization of credits
  5. Management contracts and management fees
  6. Assignment of a concession of an extractive industry (mining) with hidden payments for transfer of shares
  7. Sale and further repurchase of an automobile under a cancellation of contract scenario
  8. Direct transfer of Peruvian shares via capital contribution and subsequent capital reduction structure
  9. Artificial use of preferential tax regimes
  10. Loan via financial leasing structure
  11. Intermediation in the sale of minerals through an entity without economic substance
  12. Nonprofit entity making payments to an overseas supplier
  13. Transfer of real estate to the shareholder and further lease of said real state by the shareholder to the company
  14. Transfer of real estate under a demerger scheme
  15. Hidden loan and accrual of interest at fair market value
  16. International lease through a conduit company with no economic substance
  17. Disposal of shares with the appearance of being carried out by means of a stock exchange
  18. Value-added tax (VAT) exemption on sale of books
  19. Transfer of dividends through an entity resident in a jurisdiction of the European Union
  20. Indirect transfer of intangible assets
  21. Back-to-back credit between related parties using a foreign bank
  22. Transfer of research and development (R&D) functions to foreign subsidiary for exploitation of intangible
  23. Commission agent versus distributor
  24. Import and distribution of goods considered as services

Taxpayers engaging in the respective transactions could be subject to challenge under Peru's GAAR.

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

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

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

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