17/06/2024
Update on Peru’s Executive Branch petition to Congress for powers to legislate on tax matters.
Bill No. 07752/2023-PE submitted to Congress on May 3 recently got a favorable opinion from the Constitution and Regulations Committee. However, according to the latter’s opinion, powers would only be granted to legislate on tax matters in some of the areas requested in the initiative. Among the latter, the following proposed amendments stand out:
• Establish a mechanism for collecting VAT on transactions carried out with nonresident suppliers of goods and services within the framework of the digital economy.
• Include remote gaming and remote sports betting within the scope of application of the Excise Tax.
• Amend the section of the Income Tax Law referring to other valuation methods for transactions carried out within the scope of application of transfer pricing to reflect the economic reality of the transaction and to guarantee the principle of legal reserve.
• Improve the rules governing advance pricing arrangements with the precision that the rules are refined in accordance with the minimum standard of Action 14 of the OECD BEPS
• The simplification of requirements for the registration in the centralized registry of taxpayers (RUC) of nonresident legal entities and legal bodies incorporated abroad, which are obliged to file the declaration of the beneficial owner when they have a branch, agency, or other permanent establishment in the country.
The Bill will be debated in the Plenary of Congress. If approved, it will be passed to the Presidency of the Republic for subsequent enactment.
