Countries › Peru › Guide › 3. Investing › Works for taxes (Obras por Impuestos): financing public projects and paying income tax and IGV with CIPRL certificates

Works for taxes (Obras por Impuestos): financing public projects and paying income tax and IGV with CIPRL certificates

Last verified: 2026-10-28 · Status: Changing

Under Ley Nº 29230 a private company can finance and build a public project for a regional or local government, a public university or a national entity, and is repaid with Treasury certificates (CIPRL or CIPGN) that it uses to pay its own taxes. Since Ley Nº 32460 of 2 October 2025 the certificates can cover up to 80 percent of income tax advances and balances, ITAN, the special mining tax, IGV and excise, instead of 50 percent of the prior year's income tax, and the mechanism now also covers services and territorial planning. A new regulation (DS Nº 038-2026-EF) has applied since 13 March 2026 and was adjusted on 24 October 2026.

USD figures use S/ 3.452 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 27 October 2026 and shown in the Banco Central de Reserva del Perú statistics series PD04640PD. Amounts in UIT use the 2026 tax unit of S/ 5,500 (Decreto Supremo Nº 301-2025-EF, as cited in SUNAT Resolución de Superintendencia Nº 000016-2026). Amounts that the law sets in US dollars are quoted as written. Conversions are for orientation only.

Key facts

Maximum share of eligible tax payments that can be settled with CIPRL	80 %Ley 29230 art. 7.2 as amended by Ley 32460, as of 2026-10-28 · in force
Validity of CIPRL certificates	10 yearsTUO Ley 29230 (DS 081-2022-EF) art. 8, as of 2026-10-28 · in force
Annual uplift on CIPRL carried forward because of the cap	2 % per yearTUO Ley 29230 art. 9.3, as of 2026-10-28 · in force
Performance guarantee (bank letter of guarantee) per awarded obligation	4 %Reglamento Ley 29230 (DS 038-2026-EF) art. 113.3, as of 2026-10-28 · in force
Admissible economic offer range in a competitive Works for Taxes process	90 to 110 percent of the reference amount textDS 038-2026-EF art. 104.3, as of 2026-10-28 · in force

The rule

1. Private companies that sign an investment agreement (convenio de inversión) may finance, execute or propose public investment projects and optimization, marginal expansion, rehabilitation and replacement investments (IOARR) within the national public investment system, provided they are consistent with development plans and have their feasibility declaration or approval. Regional and local governments (and their associations) may sign these agreements, and the company transfers the finished project to the public entity.
Example: A mining company finances and builds a S/ 10,000,000 school for a provincial municipality and hands it over on completion.Texto Único Ordenado de la Ley Nº 29230, approved by Decreto Supremo Nº 081-2022-EF, Art. 2 and art. 6, 2022-04-29 official text · verified 2026-10-28

2. National government entities are also authorized to execute projects, IOARR and operation or maintenance activities through Works for Taxes. The Treasury (Dirección General de Tesoro Público) pays the company with CIPGN certificates, which follow the CIPRL rules where applicable; using this route is not treated as public borrowing, and the entity must hold a budget certification before calling the selection process.Ley Nº 29230 as amended by Ley Nº 32460 (El Peruano, 2 October 2025), Art. 2-B.1 to 2-B.7 as worded by Ley 32460 art. 1, 2025-10-02 official text · verified 2026-10-28 · changed: Ley Nº 32460 (2 October 2025) rewrote art. 2-B on national government projects, adding operation and maintenance and the CIPGN payment route.

3. The company is repaid with Certificados de Inversión Pública Regional y Local (CIPRL) issued by the Ministry of Economy and Finance for up to the total amount invested under the agreement. CIPRL are valid for ten years from issue and are negotiable, except when the company itself is the builder of the project.Texto Único Ordenado de la Ley Nº 29230 (DS Nº 081-2022-EF), Art. 8 and art. 9.1, 2022-04-29 official text · verified 2026-10-28

4. CIPRL may be applied by the company against up to 80 percent of its advance payments, annual balances, debts or other obligations for: corporate income tax (third category), the temporary net assets tax (ITAN), income tax under the special regime and the MYPE regime, the special mining tax, IGV and the selective consumption tax, with no order of priority among them. Before Ley 32460 the cap was 50 percent of the corporate income tax for the previous year and only income tax advances and balances qualified.
Example: A company whose monthly income tax advance is S/ 1,000,000 may settle up to S/ 800,000 of it with CIPRL and pays S/ 200,000 in cash. / About US$289,687 of advance, of which about US$231,750 can be paid with certificates.Ley Nº 29230 as amended by Ley Nº 32460, Art. 7.2 of Ley 29230 (art. 9.2 of the TUO) as worded by Ley 32460 art. 1, 2025-10-02 official text · verified 2026-10-28 · changed: Ley Nº 32460 (2 October 2025) raised the usable share from 50 percent of the prior year's income tax to 80 percent of the payments of a wider list of taxes, including IGV.

5. CIPRL not used in the year because of the cap can be used in later years, and when used the Treasury recognizes an additional 2 percent a year on that amount by issuing new CIPRL. Certificates still unused at the end of their validity because of the cap can be refunded by SUNAT.Texto Único Ordenado de la Ley Nº 29230 (DS Nº 081-2022-EF), Art. 9.3 and art. 9.4, 2022-04-29 official text · verified 2026-10-28

6. The State may also receive services for taxes, including preparing urban development, territorial conditioning and metropolitan plans, urban and rural cadastre and microzoning studies, valued at market prices or the entity's tariffs. Public entities may finance health, sanitation and education services in rural, border or emergency areas through the same procedures, paid with CIPGN or CIPRL. The regulation sets a term of one to three years for services, which may differ when the nature of the service or special laws require it and the entity justifies it before prioritization.Ley Nº 29230 as amended by Ley Nº 32460; Reglamento approved by DS Nº 038-2026-EF as amended by DS Nº 225-2026-EF (El Peruano, 24 October 2026), Ley 29230 art. 3-A and twenty fifth final provision (added by Ley 32460 art. 2); Reglamento art. 82.2, 2026-10-24 official text · verified 2026-10-28 · changed: Ley 32460 (2 October 2025) added Servicios por Impuestos; DS Nº 225-2026-EF (24 October 2026) let the one to three year service term be varied with technical justification.

7. Public entities run the selection of the company, with ProInversión's technical assistance or by fully delegating the process to it. If only one company is interested, the project is awarded directly; with two or more interested parties or bidders, a selection process under the regulation applies. In that process an economic offer is admitted only if it is between 90 and 110 percent of the reference amount; above the reference amount (by up to 10 percent) the bidder is invited to reduce to it, and for private initiatives the reference amount cannot be exceeded.TUO Ley Nº 29230 (DS Nº 081-2022-EF); Reglamento de la Ley Nº 29230 approved by Decreto Supremo Nº 038-2026-EF (El Peruano, 13 March 2026), TUO art. 7; Reglamento art. 104.3 and 104.4, 2026-03-13 official text · verified 2026-10-28 · changed: DS Nº 038-2026-EF (13 March 2026) replaced the regulation approved by DS Nº 210-2022-EF and its 2024 amendment DS Nº 011-2024-EF.

8. The company must give the public entity a performance guarantee only in the form of a bank letter of guarantee, unconditional, joint and several, irrevocable and payable on first demand in Peru, issued by an SBS supervised company rated B or better or by a first category foreign bank on the BCRP list, for 4 percent of the awarded amount of each obligation in the agreement.
Cost to do it: Letter of guarantee for 4 percent of each awarded obligation, plus the issuing bank's fee (not regulated).
Example: For a S/ 10,000,000 works obligation the guarantee is S/ 400,000. / About US$115,875 on a project of about US$2,896,871.Reglamento de la Ley Nº 29230 (DS Nº 038-2026-EF), Art. 113.1 to 113.3, 2026-03-13 official text · verified 2026-10-28

9. If the public entity fails to request the certificates through the valued documents platform, the company may apply to the MEF's Dirección General de Política de Promoción de la Inversión Privada. Within three business days that office asks the entity to confirm within five business days whether the conditions are met; silence leads the Treasury to issue the CIPRL or CIPGN, and once confirmed the Treasury issues and delivers them within ten business days.Ley Nº 29230 as amended by Ley Nº 32460, Art. 11.3 to 11.9 as worded by Ley 32460 art. 1, 2025-10-02 official text · verified 2026-10-28

10. Disputes under the investment agreement go first to direct negotiation in good faith within a 30 business day limitation period from the dispute, with a copy of the request to ProInversión; the period can be extended up to 60 business days when a third party opinion is needed. If direct negotiation fails, either party may go to conciliation or arbitration within the following 30 business days.Ley Nº 29230 as amended by Ley Nº 32460, Art. 16.1 to 16.3 as worded by Ley 32460 art. 1, 2025-10-02 official text · verified 2026-10-28

Feature	Before Ley 32460	After Ley 32460 (published 2 October 2025)
Cap	50 percent of the prior year's corporate income tax	80 percent of the payments, balances, debts or other obligations of the listed taxes
Taxes that can be paid	Corporate income tax advances and annual balance	Corporate income tax, ITAN, special regime and MYPE income tax, special mining tax, IGV and excise
What can be financed	Projects and IOARR	Projects, IOARR, operation and maintenance, services for taxes and territorial planning tools

How the 2025 reform changed the use of certificates (Ley 29230 art. 7.2, TUO art. 9.2).

Worked example

A company finances a S/ 10,000,000 water project (about US$2,896,871) for a district municipality. It posts a S/ 400,000 bank guarantee (4 percent, DS 038-2026-EF art. 113.3) and, on accepted milestones, receives CIPRL for the amount invested (TUO art. 9.1).
Its monthly income tax advances and IGV total S/ 1,000,000. It settles up to S/ 800,000 a month with CIPRL (Ley 29230 art. 7.2 as amended), so the S/ 10,000,000 is recovered in about 12.5 months of payments, instead of being capped at half of last year's income tax as before October 2025.
Certificates left over in a given year keep their value and earn 2 percent a year when used later (TUO art. 9.3); anything left unused at the end of the ten year validity can be refunded by SUNAT (art. 9.4).

Step by step

Review the public entities' prioritized project lists and the annual maximum capacity caps (topes máximos de capacidad anual) that the MEF approves by supreme decree, or propose a project yourself as a private initiative.
Express interest when the entity, or ProInversión acting for it, publishes the call. With a single interested party the project is awarded directly; with more, a selection under DS 038-2026-EF follows.
Price the offer inside the 90 to 110 percent band of the reference amount, and line up a bank able to issue the 4 percent performance letter of guarantee.
Sign the investment agreement with the public entity.
Execute and obtain conformity of each milestone; the entity then requests the certificates. If it does not, apply to the MEF under art. 11.3 to 11.9 (3 plus 5 business days to confirm, 10 business days to issue).
Apply the certificates in SUNAT payments within the 80 percent cap and track validity (ten years) and the 2 percent carry forward uplift.

Common traps

Older guides quote a cap of 50 percent of last year's income tax. That rule was replaced by Ley Nº 32460 on 2 October 2025; check which version a document is applying.
The 2022 regulation (DS Nº 210-2022-EF) and DS Nº 011-2024-EF were repealed by DS Nº 038-2026-EF on 13 March 2026. Agreements and bases prepared on the old regulation need to be checked against the new numbering.
CIPRL are not negotiable when the company that receives them is itself the builder of the project (TUO art. 8). Plan cash flow on the basis that you will use them against your own taxes.
The performance guarantee can only be a bank letter of guarantee (DS 038-2026-EF art. 113.1), from an SBS supervised issuer rated B or better or a BCRP listed foreign bank.
Missing the 30 business day direct negotiation limitation period, or the following 30 business days to go to conciliation or arbitration, can forfeit the claim (Ley 29230 art. 16).
The national level CIPGN are paid from the entity's own budget sources; the entity must hold a budget certification before calling the process (art. 2-B.7). Confirm that commitment before bidding.

Sources

← Foreign investment in Peru: open entry, ProInversión registration, legal stability agreements, early VAT recovery and restricted sectorsPublic private partnerships and asset projects in Peru: Ley Nº 32441, ProInversión, unsolicited proposals and contract terms →

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