In Peru changes have been made to the income tax regulations regarding financial derivatives and the tax basis on indirect transfers of Peruvian shares through Supreme Decree No. 088-2015-EF on 18 April 2015. The changes became effective as from 19 April 2015.
According to the new rule income obtained from financial derivatives of nonresidents will be considered as sourced in Peru only if the settlement date of the derivative occurs within three calendar days from the date of the contract given that the underlying asset is based on the exchange rate of the Peruvian currency (PEN) against any other foreign currency. Also, those financial derivatives will be subject to a withholding tax rate of 30%.
The new rule also has extended the tax basis certification rule to include indirect transfers of Peruvian shares.
