The Executive Branch of Peru issued Decree No. 1264 on 11 December 2016 providing for a temporary tax amnesty regime to regularize unreported assets.
The benefits of the tax amnesty regime are the abolition of fines, sanctions and any past income tax liabilities related to the unreported assets.
Individuals and estates of deceased persons who were resident in Peru in any fiscal year prior to 2016 may be able to apply for the tax amnesty regime. But individuals who from 2009 have held or currently hold a position in the government and their spouses, concubines or any relatives within the second degree of consanguinity and second degree of affinity will not be able to apply for the tax amnesty regime. Also, individuals convicted of certain crimes will be unable to apply for the regime.
Unreported income which was generated up to 31 December 2015 may be subject to the tax amnesty regime. But, assets in terms of money, goods and/or rights which were located in blacklisted jurisdictions are excluded from the regime.
The tax rates applicable to this tax regime are as follows:
- 7%-in case of unreported income is declared, repatriated and invested in Peru; and
- 10%-in case of declaration only of the unreported income to the tax authorities;
The tax regime is effective from 1 January 2017 and eligible taxpayers will be able to apply for the regime until 29 December 2017.
