The parliament of Peru published Draft Law No. 4743/2015-PE on 26 August 2015. The Draft law proposes certain tax incentives designed for increasing investment in the stock market.
The proposed tax incentives are as follows:
-Providing exemption from income tax on gains derived from the sale of shares through the stock market provided that during the 12-month period prior to the sale of the shares the taxpayer or its related parties did not transfer ownership of 10% or more of the total shares issued by the enterprise; and that the shares are regularly traded on the stock market with a specified minimum trading volume.
-An entity acting as a market maker under the criteria established by the Supervisor of the Stock Market may suspend advance payment of income tax for a period of 2 years as from the fiscal year in which it is incorporated. The entity will have to meet the requirement set out in article 85.i.c. of the Income Tax Law.
If approved the proposed measures would enter into force on 1 January 2016.
