On 31 October 2019, Peru published an Urgent Decree 010-2019 in the official gazette modifying Legislative Decree No. 30309. The Decree promotes scientific research, technological development and technological innovation. The tax benefits are extended for an additional three years, until 31 December 2022.
Previous Legislative Decree No. 30309 is effective until this year. The tax benefits are extended making it more attractive and efficient, especially for smaller companies (revenues that do not exceed 2,300 UIT), which usually have greater financing problems and higher relative costs for the administration, formulation and execution of scientific research, technological development and technological innovation (R&D) projects.
Moreover, the Decree clarifies about deduction percentage for the eligible taxpayers who incur expenses in scientific research projects, technological development, and/or technological innovation. The Decree will be effective from 1 January 2020.
