On 4 June 2019, the Peruvian tax authority (SUNAT) published new guidance (Informe No. 046-2019-SUNAT/7T0000) for the determination of the market value of shares in relation to the rules for the taxation of the indirect transfers of shares in Peruvian entities.
Under the new guidance, the ownership interest is required for the indirect transfer rules to apply when foreign holding companies calculate whether they have a 50% or more ownership interest in a Peruvian entity in accordance with the last balance-sheet and a transfer is generally considered an indirect transfer of a Peruvian entity’s shares, and subject to tax and the transfer also represents 10% or more of the capital of the foreign holding company.
Further, for the determination of the market value, article 10 of the Peruvian income Tax act and other related statutes determine that if the Peruvian entity is not listed on any stock exchange or other regulated market, its fair-market value will be the value registered in its last audited financial statement corresponding to 31 December of the year immediately preceding the year of the transfer. The same rule applies if the entity is listed but there is no quotation in the 12 months preceding the transfer.
