On 31 December 2020, Peru has issued Law No. 31110 in the official gazette modifying new regime and tax incentives for agribusiness. The new Law replaces previous Law No. 27360 and is effective from 1 January 2021. The Law aims to develop agriculture sector, and to help the taxpayers relating the applicable sector.
The Law is applicable for agribusiness activities and using mainly agricultural products outside Lima and Callao province, and agricultural producers with five hectares or less of production. Activities related to wheat, tobacco, oil seeds, oils and beer are the out of scope of this Law.
Income tax rate applicable under this regime are as follows:
Corporate income tax (CIT) rate for taxpayers whose net income does not exceed 1,700 tax units
| Fiscal Year | CIT rate |
| 2021–2031 | 15% |
| From 2032 | 29.50% |
Corporate income tax (CIT) rate for taxpayers whose net income exceed 1,700 tax units
| Fiscal Year | CIT rate |
| 2021–2022 | 15% |
| 2023-2024 | 20% |
| 2025-2027 | 25% |
| From 2028 | 29.5% |
Monthly advance payments of income tax will be calculated by as following rates to their monthly net income:
| CIT rate | Advance payments tax percentage |
| 15% | 0.80% |
| 20% | 1% |
| 25% | 1.30% |
| General regime (29.5%) | 1.50% |
The Law also establishes 20% accelerated depreciation rate per year on the amount of investments in hydraulic infrastructure and irrigation works; and Value-added tax (VAT) benefits as well.
