The UK’s His Majesty’s Revenue and Customs (HMRC) issued a joint declaration on 17 May, 2024, announcing the successful conclusion of negotiations for an income tax treaty with Peru.
Discussions were held over the course of several years between HMRC and the Ministry of Economy and Finance of Peru regarding a Double Taxation Agreement (DTA).
A consistent ask from businesses in both the UK and Peru; the DTA is a bilateral treaty to address how each country will tax cross-border income, prevent tax avoidance and evasion, and provide relief from double taxation.
It also establishes limits on how each country’s domestic legislation can tax cross border income such as payments of dividends, interest and royalties.
Both nations welcome the conclusion of the negotiations. The signing of this agreement will have an important role to play in increasing cross-border trade and investment, providing long term certainty and stability to business, and in enhancing our bilateral relationship.
This treaty is the first of its kind between the two nations and will require signing and ratification before it can take effect.
