In Peru, the main taxes such as General Sales Tax (IGV) and Income Tax (IR) are collected by the Central Government, through the National Superintendence of Tax Administration (SUNAT). There are also other taxes collected by municipal governments.

Types of Taxes in Peru

The Central Government, the Ministry of Economy and Finance, as well as the National Superintendence of Customs and Tax Administration (SUNAT) are the main entities in charge of tax collection.

Thus, within the main types of taxes are:

• General Sales Tax (IGV).
• Income Tax (Impuesto a la Renta).
• Selective Consumption Tax (Impuesto Selectivo al Consumo).
• Financial Transaction Tax (ITF).
• Import Tax (Tariff).
• New Simplified Single Regime (NRUS).
• Vehicle Tax.
• Excise Tax.
• Special Tax on Mining.
• Temporary Tax on Net Assets (ITAN).

Next, we will explain each one of them

General Sales Tax (IGV)

It is a type of indirect tax that is levied at the time of a purchase transaction, whether of goods or services; construction contracts, first sale of real estate and importation of goods. There is an obligation to pay it as an individual or legal entity.

Within the classification of taxes, the IGV is the most common tax operation and the one to which most citizens are subject.

The rate of the General Sales Tax, IGV, is 18%. This corresponds to 16 % of the rate itself and 2 % for the Municipal Promotion Tax. It is applied on the total amount of the transaction.

Income Tax

It is a type of direct tax. In the classification of taxes, it is the most important in our country, since it constitutes one of the main revenues for the budget and financing of the nation.

In Peru, this tax category is subdivided into five categories. Each one obeys to the origin of the income received and/or accrued on which the corresponding tax will be calculated.

First category: This is the income derived from the rental and/or assignment of real or personal property, such as the rental of machinery, cars, trucks, houses, apartments, among others. This must be paid even if the rent is not paid.

Second category: Income known as "capital gain"; since it comes from the results obtained from securities, investments, invested capital or gains on the transfer of real estate such as: stocks, bonds, mutual fund participations, royalties, interest, etc.

Third category: Income generated by individuals and businesses with economic or entrepreneurial activities.

Fourth category: Income generated by independent workers and/or persons acting as directors.

Fifth category: Income generated by dependent workers, i.e., those who are on the payroll.

Selective Consumption Tax (ISC)

The Selective Consumption Tax is a tax that, unlike the IGV, is only levied on certain consumer goods.

The purpose of the ISC can be divided into two objectives. The first is to discourage the acquisition and consumption of products that may cause negative alterations to the individual, society and the environment. The second is to grant a greater contributive capacity to those who are able to acquire sumptuous or luxury goods.

Tax on Financial Transactions (ITF)

It was created to tax some of the transactions carried out through the companies of the financial system.

This tax is calculated on the basis of 0.005% of the total amount of the transaction.  All individuals and legal entities with bank accounts, as well as those who carry out financial activities in such entities, are subject to the payment of the FTT.

However, some transactions are exempted from payment. The complete list can be consulted in the third chapter of the Law for the Fight against Evasion and for the Formalization of the Economy.

Import Tax (Tariff)

Within the classification of taxes in Peru, there is a tariff. This is a type of tax levied on products imported into the national territory. These may be raw materials or final products for sale.

The tariff is calculated in three possible ways:

Ad-valorem tariff: It is a percentage calculation on the CIF import value (which includes cost, insurance and freight).

Specific tariff: It is calculated with a certain amount of monetary units per unit of import volume.

Mixed tariff: Tax composed of an ad-valorem and a specific tariff.

New Simplified Single Regime (NRUS)

It is a tax regime created for small traders and producers, which allows them to pay a monthly fee based on their purchases and/or income, which replaces the payment of various taxes.

This regime is aimed at individuals who sell merchandise or services to final consumers. Persons who carry out a trade or profession may also be included in the New RUS.

Vehicle Tax

The vehicle tax is levied on the ownership of vehicles, cars, vans, trucks, buses, etc. It is a tax levied by the provincial municipality and is calculated by taking 1% of the original value at which the vehicle was acquired, being an amount that should not be less than the Referential Table that is updated every year.

The payment of this tax obligation is made in January of each year, during the first three years after the acquisition of the vehicle.

Alcabala Tax

This tax is levied on transfers of real estate, urban and rural, for valuable consideration or free of charge, regardless of its form or modality. The purchaser or acquirer of the urban and/or rustic property is subject to declare and pay, regardless of its acquisition modality.

The calculation for the payment of this tax modality is made on the basis of the value of the transfer or, in any case, the self-assessed value of the property. On this, after deduction of 10 UIT, the calculation of 3% is applied.

Special Tax on Mining

It is a tax levied on the operating profit obtained by the subjects of the mining activity from the sales of metallic mineral resources. It was created by Law No. 29789 and establishes that the tax will be collected and administered by SUNAT.

Temporary Tax on Net Assets (ITAN)

It is a tax that must be declared and paid by those who belong to the General, Mype, Amazonian, Agrarian regimes or establishments in border areas, under certain conditions and with certain exceptions. It applies 0.4% of the total amount of net assets exceeding one million soles, according to your annual balance sheet.

Taxes on casinos and slot machines

This is one of the most specific types of taxes since it only applies to individuals and companies that operate games of chance and slot machines. They must pay 12% of the difference between net income and maintenance expenses.

As evidenced, there are several types of taxes in Peru, which are aimed at taxing different sectors in order for the State to be able to collect them. As a Taxpayer you have the responsibility to comply with your tax obligations, declaring and paying on time what is due to you in order to avoid being fined.

If you are facing doubts about the types of taxes and how to proceed, in Vega & Abogados we are able to help you. Contact us, we will be glad to help you get your company's tax situation on track.