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Peru – COVID-19: Additional Fiscal Measures and Controls on Freedom of Movement

Peru– Fiscal Measures & Controls on Freedom of Movement

Due to the State of Emergency Peru is facing, several urgent decrees have been published that allow individuals to more readily access funds, earlier than expected, in their pension funds and CTS bank accounts; also employers should see their and their employees’ burdens lightened with a temporary suspension of their private pension fund withholding and payment remitting obligations.

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Due to the State of Emergency Peru is facing, several urgent decrees1 have been published over the past few days establishing extraordinary measures concerning economic and financial matters, as well as more stringent rules around movement of individuals (including curfews) in order to:

  • mitigate the negative economic effects of the crisis related to the pandemic; and
  • prevent and control further spread of the coronavirus and COVID-19.

(For related coverage, see GMS Flash Alert 2020-062, March 16, 2020.) 

WHY THIS MATTERS

The decrees contain measures that are expected to bring some fiscal relief to companies, small businesses, and individuals facing financial difficulties due to the COVID-19 crisis.  With the promulgation of these decrees, individuals can more readily access funds, earlier than would otherwise be possible, in their pension funds and CTS bank accounts and employers should see their and their employees’ burdens lightened with a temporary suspension of their private pension fund withholding and payment remitting obligations. 

The government has also introduced more restrictions on movement with the imposition of curfews and managed outings by individuals for purposes of shopping for essential supplies like food, medicine, and emergency supplies, etc.

Measures on Subsidies, Employment, Private Pension Fund Contributions, and Facilitating Access to Funds

Please find below the main measures adopted by Peru’s government by means of these decrees:

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Social Measures; Curfews, Managed Outings, Face-Masks

In addition, as from April 3, 2020, only one person per family is allowed to go out to buy essential food and emergency supplies, according to the following schedule:

  • Monday, Wednesday, and Friday: Only male individuals.
  • Tuesday, Thursday, and Saturday: Only female individuals.
  • Sunday: Isolation is mandatory for all individuals for the entire day.

For Lima, there is a curfew in place that goes from 6:00 pm until 5:00 am.  In other regions such as Tumbes, Piura, Lambayeque, La Libertad, and Loreto, the curfew starts at 4:00 pm.   

Finally, Supreme Decree No. 057-2020-PCM also establishes the mandatory use of face masks.

FOOTNOTE

1  Some of the relevant decrees (in Spanish) are noted below:

Supreme Decree No. 057-2020-PCM (Decreto Supremo Nº 057-2020-PCM at: https://cdn.www.gob.pe/uploads/document/file/574872/DS_057-2020-PCM.pdf).

Urgency Decree No. 034-2020 (Decreto de Urgencia Nº 034-2020 at: https://cdn.www.gob.pe/uploads/document/file/574665/DU_034-2020.pdf).

Urgency Decree No. 033-2020 (Decreto de Urgencia Nº 033-2020 at: https://cdn.www.gob.pe/uploads/document/file/572106/DU033_2020.pdf).

Thought Leadership from KPMG

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Date: Thursday, April 09, 2020

Time: 12:00 PM BST

To register and for more information, click here.

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The information contained in this newsletter was submitted by the KPMG International member firm in Peru.

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