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Peru: Tax developments in response of COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 18 November 2020

Specific rule to carryforward for losses incurred 2020 fiscal year

  • By means Legislative Decree No. 1481 (published on May 8, 2020) specific rule were established related to carryforward for losses incurred 2020 fiscal year. 
  • This measure is applicable to companies opt to carry forward to tax losses in accordance with the System A established in the Income Tax Law (*).  
  • In this sense, the Legislative Decree No. 1481 establish that such companies may carry forward for tax losses incurred in tax year 2020 forward for five years instead of four, counted from 2021 until 2025 fiscal year.

(*) System A: Tax losses incurred in a fiscal year may be carried forward for taxpayers to offset 100% of earnings obtained in the following four fiscal years. 

System B: Tax losses incurred in a fiscal year may be carried forward indefinitely for taxpayers to offset 50% of earnings in future fiscal years.

Special depreciation rules 

By means Legislative Decree No. 1488 (published on May 10, 2020), special depreciation rules were established under which the companies may apply 20% annual depreciation in case of buildings and constructions provided that the following conditions are met:

  • its construction started on or after January 1, 2020, and, 
  • at least 80% of the progress of the construction is complete until December 31, 2020.

Taxpayers who acquire assets (i.e. buildings and constructions) during 2020, 2021 y 2022 fiscal years that met conditions indicated in points i) and ii), may also apply the 20% annual depreciation. 

However, said 20% annual depreciation will not be applicable when said assets have been totally or partially built before January 1, 2020.

In addition, taxpayers may apply the following annual depreciation percentages in case of assets acquired in fiscal years 2020 and 2021:

peru tax development table 1

Depreciation regime applicable to hotels and lodgings, travel and tourism agencies, restaurants and non-sporting entertainment activities: 

Under this regime, taxpayers may apply a % depreciation for fiscal years 2021 and 2022 for the following assets that, as of December 31, 2020, have not been fully depreciated:

Buildings and constructions  = 20% annual depreciation. 

Ground transportation vehicles (except railways) = 33.33% annual depreciation.

'Electronic Billing Systems (in Spanish, Sistema de Facturación Electrónica)

Extension of the date of appointment of companies supervised by the Superintendence of Banking and Insurance as Electronic Issuers:

table 2

New dates according to annual revenue obtaining in 2019 fiscal year

table 3

Early VAT Recovery Regime for MYPE (in Spanish, Régimen de Recuperación Anticipada del IGV – RERA MYPE)

Early VAT Recovery Regime for MYPE was created  through Law No. 30296 (published on December 31, 2014) and is applicable to companies considering as MYPE (i.e. Micro and Small scale companies, in Spanish, Micro y Pequeñas empresas). 

By means Legislative Decree No. 1463 (published on April 17, 2020), provides as follows: 

Extend the period of validity of Early VAT Recovery Regime for MYPE companies with annual revenue not higher than 300 Tax Unit:

  • Until December 31, 2023.

Temporary inclusion of companies in the Early VAT Recovery Regime for MYPE, provided that such companies obtain revenue  higher than 300 Tax Unit up to 2,300 Tax Unit and have opted for the MYPE Tax Regime or the IT General Regime:

  • Until December 31, 2021.

Alternative Regime for the Postponement and/or Payment in installments (Fractionation) of the tax debts administered by SUNAT or the Health Contribution of Essalud

  • In order to mitigate the impact of the measures set forth in the declaration of the State of National Emergency, Legislative Decree No. 1487 (published on May 10, 2020) has established an Alternative Regime for the Postponement and/or Payment in installments (Fractionation) of the tax debts administered by SUNAT, which constitute income from the Public Treasury (IT, VAT, among others) or the Health Contribution of Essalud.
  • The application to this alternative regime may be made until September 30, 2020.