Tax Benefits for Businesses Entering the Peruvian Market

Peru • January 21, 2025 • Written by: Ongresso - Business Beyond Borders

Expanding into a new market always presents a range of challenges and opportunities. For businesses considering entry into Peru, understanding the local tax landscape is crucial. Companies are often deterred by the complexities and potential financial burdens of new tax environments. However, Peru offers various tax incentives that can significantly ease this transition and make the market more attractive to foreign investors. At Ongresso, we leverage our extensive experience and deep regional knowledge to help businesses navigate these complexities efficiently.

Peru has implemented several tax incentives to attract foreign investment and stimulate economic growth. Here are some of the key benefits:

Tax Stability Agreements

Protection from Tax Changes: These agreements provide foreign investors with protection from future tax changes for up to 10 years, ensuring a stable and predictable tax environment.
Eligibility Criteria: Companies need to invest a minimum amount, usually significant, in specific sectors to qualify.

Temporary Tax Exemption for New Businesses

Startup Exemption: New businesses in specific sectors or regions can benefit from temporary tax exemptions, usually for the first 3-5 years.
Encouragement of Regional Development: These exemptions are often targeted at developing regions, promoting economic balance across the country.

Accelerated Depreciation Rates

Faster Capital Recovery: Businesses can depreciate their assets at an accelerated rate, reducing taxable income in the early years.
Sectors Benefited: This benefit is typically available for investments in infrastructure, machinery, and certain industrial sectors.

Special Economic Zones (SEZs)

Tax Advantages in SEZs: Companies operating in SEZs may enjoy reduced income tax rates, exemptions from import duties, and other local taxes.
Focus on Export-Oriented Activities: SEZs are designed to boost export-oriented businesses, offering additional incentives for such activities.

Research and Development (R&D) Tax Credits

Encouraging Innovation: Businesses investing in R&D can claim significant tax credits, encouraging innovation and technological advancement.
Eligible Expenses: These credits often cover a wide range of expenses, including salaries, materials, and overheads related to R&D activities.

Investment in Key Sectors

Sector-Specific Incentives: Peru provides additional tax incentives for investments in key sectors such as mining, agriculture, and tourism.
Customs and VAT Benefits: Investors in these sectors may benefit from exemptions or reductions in customs duties and VAT.

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.

Ready to 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!