In Peru, Law Decrees Nos. 1258 and 1261 establishing certain amendments to the Income Tax Law were published in the Official Gazette on 8 and 10 December 2016 respectively.
According to the amendments the general corporate income tax rate has been increased from 28% to 29.5%.
The income tax rate for capital gains derived from the disposal of immovable properties situated in Peru and owned by Peruvian non-residents has been reduced from 30% to 5%. For dividends derived from Peruvian sources, the income tax rate has been reduced from 6.8% to 5%. However, for dividend distributions made in 2017 but where the corresponding profits were generated between 1 January 2015 and 31 December 2016, the previous rate of 6.8% will be applicable.
These amendments are effective as from 1 January 2017.
