On 6 May 2019, the Peruvian Minister of Economic issued a Supreme Decree 145-2019-EF, which contains the provisions for the Peruvian General Tax Avoidance Scheme (GAAR) for tax purposes, which allow the Peruvian tax administration to prevent tax avoidance, including tax evasion, cross-border transactions. The decree provides for the following measures:

The new Decree establishes a non-exhaustive list of situations/scenarios in which a tax auditor can apply the Peruvian GAAR. In order to apply the GAAR, the Peruvian tax authorities will analyze any situation, considering the factors, among others that is specified in the Supreme Decree.

The new law also generates the procedure for applying GAAR, as well as the functions and procedures of the GAAR Review Committee. It specifies that the application of GAAR as part of the tax authorities inspection procedure framework.

This new Decree applies to audits of all transactions, including transactions between related parties. The Peruvian commission will remain as a competent stakeholder to review any tax audit related to tax avoidance and the correct application of the GAAR.

The review will include the taxpayer´s position on transactions deemed tax avoidance by the Peruvian tax administration. Its opinion is not subject to appeal.

Before applying a GAAR, a control or audit area, a SUNAT that performs a final control procedure must first obtain the opinion of the Review Committee on whether there are enough elements to apply the GAAR. Regardless of whether GAAR is applied, it must be consistent with the opinion of the Committee.

This Supreme Decree 145-2019-EF effective from 7 May 2019.