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.
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:
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
KPMG LLP (U.K.) Is Holding a COVID-19 Webinar Series: Tax & Legal Considerations
As businesses work through the government support measures available and adapt to the implications of COVID-19, a raft of issues are facing tax teams and business leaders. Businesses need to make sure they enhance the support available through tax, and that short-term measures taken today don’t cause long-term tax or legal risks
Date: Thursday, April 09, 2020
Time: 12:00 PM BST
To register and for more information, click here.
Please Take Our COVID-19 Spot Survey – Implications on Total Rewards Programs
As the challenges of COVID-19 continue, multinational organizations must evaluate their total rewards programs and identify both temporary and longer-term responses for their employees. KPMG has developed a 5-minute survey on the impact of COVID-19 on total rewards programs. Take the COVID-19 Spot Survey – Implications on Total Rewards Programs
RELATED LINKS
The information contained in this newsletter was submitted by the KPMG International member firm in Peru.
SUBSCRIBE
To subscribe to GMS Flash Alert, fill out the subscription form.
© 2021 Caipo y Asociados S. Civil de R. L. y KPMG Asesores S. Civil de R. L., sociedades civiles de responsabilidad limitada peruana y firmas miembro de la organización global KPMG de firmas miembro independientes afiliadas a KPMG International Limited, una compañía privada inglesa limitada por garantía. Todos los derechos reservados.
Para obtener más detalles sobre la estructura de la organización global KPMG, visite https://home.kpmg/governance.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
