Rates for the payment of the Income Tax 2017 are modified in Peru

After obtaining approval by the Peruvian Congress to be granted Legislative Powers, the Executive has issued a series of measures aimed at broadening the tax base and boosting business formalization.

One of the actions that will come into effect in January, through Legislative Decree No. 1261, is the modification of the rates established for the payment of Income Tax during the periods 2017.

This is how people taxed with the tax payment in third category will pay 2.5% more than had been calculated for the next two years.

Below we present the new rates that citizens must pay according to law:

Rate of 5% for dividends of natural persons domiciled in the country, includes any other form of distribution of profits. According to Law 30296, a rate of 8% was envisaged for 2017 and 2018.

Rate of 5% for dividends of natural persons not domiciled in the country. According to Law 30296, a rate of 8% was envisaged for 2017 and 2018.

Rate of 29.5% for third category income. According to Law 30296, a rate of 27% was foreseen.

5% additional rate for presumed dividends: Presumed dividends are considered as sustained dividends with false, untrustworthy, or issued by individuals with withdrawal from the RUC, or by subjects not qualified to issue them, or constitute income of their related parties Domiciled, not subject to control.

Income Tax rate of bearer obligations, legal entities that pay or credit income from bearer obligations or other bearer securities, shall withhold 29.5% of the amounts paid or credited for tax purposes. For 2017 and 2018, a rate of 27%.

Dividend distribution rate, legal entities that distribute dividends or any other form of profits, will retain 5% of the same, except when the distribution is made in favor of legal entities domiciled. A rate of 8% was envisaged.

Rate for investment funds, investment fund management companies will withhold the tax by applying a rate of 29.5% to the taxpayer.

For more information you can write to the following email addresses: omago@omcabogados.com.pe and marketing@omcabogados.com.pe