Peru ratifies the OECD BEPS Convention, effective 1 October 2025, strengthening efforts to combat tax avoidance.

Peru deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS Convention) on 9 June 2025, underlining its strong commitment to prevent the abuse of tax treaties and base erosion and profit shifting (BEPS) by multinational enterprises.

The BEPS Convention will enter into force on 1 October 2025 for Peru.

Representatives from 104 jurisdictions have signed the BEPS MLI, and the OECD has received instruments of ratification, acceptance, or approval from 89 of those jurisdictions.

The BEPS Convention, negotiated by more than 100 countries and jurisdictions under a mandate from the G20 Finance Ministers and Central Bank Governors, is one of the most prominent results of the OECD/G20 BEPS Project. It is the world’s leading instrument for updating bilateral tax treaties and reducing opportunities for tax avoidance by multinational enterprises. Measures included in the BEPS Convention address treaty abuse, strategies to avoid the creation of a “permanent establishment”, and hybrid mismatch arrangements.

The BEPS Convention also enhances the tax treaty dispute resolution mechanism, especially through the addition of an optional provision on mandatory binding arbitration, which has been taken up by 33 jurisdictions.

Earlier, Peru ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) through Supreme Decree No. 013-2025-RE, published in the Official Gazette on 27 May 2025.