On 30 December 2023, Peru published Law No. 31969 in the Official Gazette. The law introduces new incentives to enhance competitiveness and stimulate job creation in various sectors, including agriculture and textile industry.
One key incentive is the introduction of a 20% tax credit for reinvesting profits after taxes between 2024 and 2028. This incentive exclusively applies to the textile and clothing industries. A special depreciation regime for machinery and equipment acquired between 2024 and 2028 has also been established to further incentivize the textile and clothing sectors. Under this regime, machinery and equipment acquired in 2024 and 2025 can be depreciated at an annual rate of up to 33.33%, while those acquired in 2026, 2027, or 2028 can be depreciated at an annual rate of up to 20.0%.
New workers in the textile and clothing sectors, agricultural and irrigation, agro-export, and agro-industrial sectors are eligible for an extra deduction on the basic remuneration. The new deduction rate is set at 70% in 2024, 50% in 2025, and 30% in 2026, 2027, and 2028.
