Maximizing Tax Benefits for Business Expansion in Peru

Peru • January 6, 2025 • Written by: Ongresso - Business Beyond Borders

Expanding your business into Peru offers a wealth of opportunities, but navigating the complexities of its tax system can be challenging. From understanding tax incentives to staying compliant with local regulations, businesses often face hurdles that can impact their profitability. The key to success lies in leveraging Peru’s tax benefits effectively while minimizing risks.

Unlocking Peru’s Tax Incentives

Peru’s government actively encourages foreign investment through a variety of tax incentives tailored to specific sectors and regions. Understanding and leveraging these benefits can significantly enhance your profitability.

Key Tax Incentives in Peru:

Sector-Specific Incentives: Industries like mining, agriculture, and renewable energy enjoy tailored benefits, including reduced tax rates and exemptions.
VAT Refunds for Exporters: Businesses engaged in export activities can recover VAT paid on inputs, improving cash flow.
Free Trade Zones: Operating within these zones offers exemptions from duties and taxes, streamlining operations and reducing costs.
Accelerated Depreciation: Investments in assets like machinery or infrastructure qualify for faster depreciation, reducing taxable income.

Navigating Complex Compliance Requirements

While Peru offers many tax benefits, ensuring compliance is critical. The country’s tax authority, SUNAT, enforces strict regulations, and non-compliance can lead to audits, fines, and reputational risks.

Key Areas to Monitor:

Corporate Tax Rates: The standard rate applies, but businesses must confirm whether special rates or exemptions are applicable.
Transfer Pricing: Multinational companies must justify intra-group transactions to avoid disputes.
Filing Obligations: Peru has rigid tax deadlines; timely and accurate submissions are non-negotiable.
Documentation: Maintaining detailed financial records is vital for audits and tax filings.

Tailored Tax Strategies with Ongresso

At Ongresso, we understand that every business has unique needs. Our team of tax and legal experts offers customized solutions to help you maximize Peru’s tax advantages while staying compliant with local laws.

Our Comprehensive Tax Services:

Tax Planning and Optimization: We identify applicable incentives and create strategies to minimize liabilities.
Regulatory Compliance Support: Our experts ensure that your filings and documentation meet all local requirements.
Real-Time Legal Updates: Stay ahead of regulatory changes with our proactive approach.
Representation and Audits: Ongresso offers local representation and handles audits, minimizing disruptions to your business operations.

The Ongresso Advantage

With years of experience in Latin American markets, Ongresso is your trusted partner for navigating Peru’s tax landscape.

Why Choose Us?

Local Expertise: We understand Peru’s unique tax environment, ensuring precise and effective solutions.
Proven Track Record: Ongresso has successfully assisted numerous multinational companies in optimizing their tax strategies.
Tailored Solutions: Our strategies are designed around your business’s specific goals and challenges.
Comprehensive Services: From setup to annual compliance, we handle every aspect of tax management, freeing you to focus on growth.

Take the Next Step

Optimizing your tax strategy is essential to unlocking the full potential of your business in Peru. Partner with Ongresso to navigate the complexities of Peru’s tax system with confidence.

Contact us today for a personalized consultation and take the first step toward maximizing your tax benefits in Peru. Let us handle the complexities so you can focus on success!