Peru has introduced a new legal framework to support maritime cabotage and the national naval industry, including a reinvestment incentive allowing eligible national shipping companies to deduct qualifying reinvested profits from their net taxable income.
Peru has enacted Law No. 32706, introducing tax incentives and industry measures aimed at modernising the country’s commercial fleet used for national coastal shipping while strengthening the domestic naval industry, including shipbuilding, repair and maintenance.
The law was promulgated on 3 July 2026 and published in the Official Gazette on 4 July 2026.
It establishes a framework to promote maritime cabotage for passenger and cargo transport and applies to authorised national shipping companies, licensed shipyards and businesses operating across the naval industry value chain. Foreign shipping companies remain subject to Legislative Decree 1413 and Law 32049 and are not eligible for the new incentives.
Reinvestment tax incentive
The legislation introduces a reinvestment of the profits regime under which eligible national shipping companies may deduct 100% of qualifying reinvested profits from their net taxable income in the fiscal year the investment is made. The deduction is capped at 30% of total taxable income.
Qualifying investments include the acquisition of nationally built vessels, fleet modernisation, port infrastructure development and upgrades to shipyard equipment.
To qualify, companies must derive at least 40% of their income from cabotage operations, maintain a verified operational plan and comply with national crew participation requirements. The reinvestment regime will remain in force for five years following the publication of the implementing regulations.
Support for the naval industry
The law authorises the government to propose Special Economic Zones (SEZs) focused on maritime cabotage and naval industry clusters to facilitate administrative procedures and encourage technological innovation.
It also introduces procurement preferences for nationally built vessels. In public procurement, domestically constructed vessels will receive additional evaluation consideration, while state-owned vessels will prioritise national construction where a technically viable offer is available.
Financing measures
To support investment in the sector, COFIDE has been authorised to develop financing programmes for maritime cabotage projects. In addition, the Fondo MIPYME will provide specialised support for small and medium-sized suppliers operating in the naval industry.
Environmental requirements
The legislation requires vessels to comply with international environmental standards.
Additional incentives are available for companies adopting clean technologies, including hybrid or electric propulsion systems. Shipyards that meet sustainability requirements may also obtain a Certificación Verde.
Implementation timeline
The Executive branch has 180 days to issue the implementing regulations for the law. Existing Peruvian-flagged vessels will have 24 months to comply with the new maintenance and technical standards.
Implementation will be financed through the existing budget of the Ministry of Transport and Communications (MTC) without requiring additional public funding.
Separately, the MTC has been directed to evaluate and implement measures within 180 days to accelerate efforts to reduce the digital connectivity gap in the department of Loreto, prioritising areas with limited or no telecommunications coverage.
