Countries › Peru › Guide › 6. Taxes › Corporate income tax in Peru: the 29.5 percent rate, worldwide income, deductions, monthly advances, the MYPE and special regimes and the net assets tax

Corporate income tax in Peru: the 29.5 percent rate, worldwide income, deductions, monthly advances, the MYPE and special regimes and the net assets tax

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

Companies incorporated in Peru pay 29.5 percent on their worldwide net business income, with a credit for foreign income tax capped at the Peruvian average rate; branches of foreign companies pay the same rate but only on Peruvian source income. Small businesses can use the Régimen MYPE Tributario (10 percent on the first 15 UIT of profit) or the Régimen Especial (1.5 percent of monthly net revenue below S/ 525,000 a year). Tax is prepaid every month at no less than 1.5 percent of revenue, and companies with net assets above S/ 1,000,000 also prepay a 0.4 percent net assets tax that is credited against income tax.

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, from the Banco Central de Reserva del Perú statistics series PD04640PD. UIT based amounts use the 2026 UIT of S/ 5,500 set by Decreto Supremo Nº 301-2025-EF. Conversions are for orientation only.

Key facts

Corporate income tax rate (general regime)	29.5 %LIR art. 55 (DL 1261), as of 2026-10-28 · in force
Additional tax on indirect profit distributions by legal entities	5 %LIR art. 55 second paragraph, as of 2026-10-28 · in force
Minimum monthly advance payment	1.5 % of net revenueLIR art. 85 b), as of 2026-10-28 · in force
Régimen MYPE Tributario rate on first 15 UIT of net income	10 %DL 1269 art. 5, as of 2026-10-28 · in force
Régimen MYPE Tributario revenue limit	1700 UITDL 1269 art. 1 and 3, as of 2026-10-28 · in force
Régimen Especial monthly quota	1.5 % of net revenueLIR art. 120, as of 2026-10-28 · in force
Régimen Especial annual revenue cap	525000 PENLIR art. 118 a), as of 2026-10-28 · in force
ITAN net assets tax rate on assets above S/ 1,000,000	0.4 %Ley 28424 art. 6, as of 2026-10-28 · in force
ITAN exempt net assets	1000000 PENLey 28424 art. 6, as of 2026-10-28 · in force
UIT tax unit for 2026	5500 PENDS 301-2025-EF, as of 2026-10-28 · in force

The rule

1. Legal entities incorporated in Peru are domiciled and pay income tax on all their taxable income, wherever the source is. Branches, agencies and other permanent establishments of foreign entities are also domiciled, but only for their Peruvian source income, so a branch is taxed on what it earns in Peru and not on the head office's other business.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), as amended by Decreto Legislativo Nº 1424, Art. 6 and art. 7 letters d) and e), 2018-09-13 official text · verified 2026-10-28

2. Domiciled companies earning business (third category) income pay 29.5 percent of their annual net income. The rate has applied since 1 January 2017. Legal entities also pay an additional 5 percent on amounts treated as an indirect distribution of profits (for example expenses that benefit shareholders), due in the month after the indirect disposal.
Example: Net income of S/ 2,000,000 gives tax of S/ 590,000. / Net income of US$579,374 gives tax of US$170,915.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), as amended by Decreto Legislativo Nº 1261, Art. 55 first and second paragraphs, 2016-12-10 official text · verified 2026-10-28

3. Net income is gross income less the expenses needed to produce it and keep its source, unless a deduction is expressly prohibited. Royalties, fees for services, technical assistance and similar payments to non domiciled parties are deductible in the year they accrue only if paid or credited by the due date of that year's annual return; otherwise they are deducted in the year actually paid.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF); letter a.4) added by Decreto Legislativo Nº 1369, Art. 37 heading and letter a.4), 2018-08-02 official text · verified 2026-10-28

4. Income tax paid abroad on foreign source income that Peru also taxes is creditable, up to the lower of the foreign tax actually paid and the Peruvian average rate applied to that foreign income. Any unused credit is lost: it cannot be carried to other years or refunded.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), as amended by Decreto Legislativo Nº 1424, Art. 88 letter e), 2018-09-13 official text · verified 2026-10-28

5. Each month companies prepay income tax at the higher of two amounts: monthly net revenue times a coefficient (prior year tax divided by prior year net revenue), or 1.5 percent of monthly net revenue. Companies with no tax in the prior year pay 1.5 percent. Payments are due with the other monthly taxes within the first twelve business days of the following month, under the schedule SUNAT publishes.
Example: Monthly net revenue of S/ 1,000,000 with no prior year tax gives an advance of S/ 15,000. / Monthly net revenue of US$289,687 gives an advance of US$4,345.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), as amended by Ley Nº 29999; Texto Único Ordenado del Código Tributario (Decreto Supremo Nº 133-2013-EF), LIR art. 85 first paragraph letters a) and b); Código Tributario art. 29 letter b), 2013-03-13 official text · verified 2026-10-28

6. The Régimen MYPE Tributario is open to domiciled businesses with net revenue up to 1,700 UIT (S/ 9,350,000 in 2026). Annual tax is 10 percent on the first 15 UIT of net income (S/ 82,500) and 29.5 percent on the rest. While annual revenue stays at or below 300 UIT (S/ 1,650,000) the monthly advance is 1 percent of net revenue. Branches and permanent establishments of foreign entities are excluded, as are businesses linked to groups whose combined revenue exceeds the limit.
Example: Net income of S/ 300,000 pays S/ 72,412.50 under the MYPE regime instead of S/ 88,500 under the general regime. / Net income of US$86,906 pays US$20,977 instead of US$25,637.Decreto Legislativo Nº 1269 (Régimen MYPE Tributario del Impuesto a la Renta), Art. 1, art. 3, art. 5 and art. 6.1, 2016-12-20 official text · verified 2026-10-28

7. The Régimen Especial del Impuesto a la Renta (RER) lets small domiciled businesses in trade, industry or services pay a final monthly quota of 1.5 percent of net revenue instead of annual income tax. It is closed to businesses whose annual net revenue or annual purchases exceed S/ 525,000, or whose fixed assets other than land and vehicles exceed S/ 126,000.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), Chapter XV as substituted by Decreto Legislativo Nº 968, as amended, Art. 117, art. 118 letter a) and art. 120 letter a), 2006-12-24 official text · verified 2026-10-28

8. Companies in the general, MYPE and other income tax regimes whose net assets at 31 December of the prior year exceed S/ 1,000,000 pay the Impuesto Temporal a los Activos Netos (ITAN): 0.4 percent of net assets above S/ 1,000,000, in one payment or nine monthly installments. ITAN actually paid is offset against the income tax advances or the annual payment of the same year.
Cost to do it: 0.4 percent of net assets above S/ 1,000,000; on S/ 5,000,000 of net assets the ITAN is S/ 16,000 (about US$4,635), recoverable as a credit against income tax.
Example: Net assets of S/ 5,000,000 give ITAN of S/ 16,000. / Net assets of US$1,448,436 give ITAN of US$4,635.Ley Nº 28424 (Ley que crea el Impuesto Temporal a los Activos Netos), published 21 December 2004, rate as amended by Decreto Legislativo Nº 976, Art. 1 and art. 6; credit as described in SUNAT Informe Nº 000124-2025-SUNAT/7T0000, 2004-12-21 official text · verified 2026-10-28

Regime	Who can use it	Rate	Monthly payment	Rule
General regime	Any domiciled company or branch	29.5% of net income	Higher of coefficient or 1.5% of revenue	LIR art. 55 and 85
Régimen MYPE Tributario	Domiciled businesses up to 1,700 UIT (S/ 9,350,000) of revenue; not branches	10% up to 15 UIT (S/ 82,500), 29.5% above	1% of revenue up to 300 UIT of annual revenue	DL 1269 art. 3, 5 and 6
Régimen Especial (RER)	Revenue and purchases up to S/ 525,000 a year, fixed assets up to S/ 126,000	1.5% of monthly net revenue, final	Same quota	LIR art. 118 and 120
ITAN (additional prepayment)	Net assets above S/ 1,000,000 at prior 31 December	0.4% of the excess	Lump sum or 9 installments, credited against income tax	Ley 28424 art. 1 and 6

Income tax regimes for businesses in Peru in 2026 (UIT S/ 5,500)

Worked example

A Peruvian S.A.C. owned by a US parent closes 2026 with net income of S/ 2,000,000 (US$579,374). Its income tax is S/ 590,000 (US$170,915).
During 2026 it has prepaid monthly advances; if they add up to S/ 480,000, it pays the balance of S/ 110,000 (US$31,866) with the annual return in 2027. If its net assets at 31 December 2025 were S/ 5,000,000, it also paid ITAN of S/ 16,000 (US$4,635) in 2026 and credits it against the same income tax.
Distributing the after tax profit of S/ 1,410,000 abroad triggers the 5 percent dividend withholding, S/ 70,500 (US$20,423); see the withholding page for the rest of the payments abroad.

Step by step

Choose the regime when registering in the RUC (general, MYPE or RER); foreign branches go straight to the general regime.
Each month, compute the advance under LIR art. 85 and file it with IGV and payroll taxes by the SUNAT due date for your RUC's last digit.
If net assets at the prior 31 December exceed S/ 1,000,000, file and pay ITAN (lump sum or first installment) and track the credit against the advances.
Before the annual return due date, pay any royalties, service fees and technical assistance owed to related non domiciled parties so they stay deductible in the year.
File the annual income tax return under the schedule SUNAT publishes for the following year, applying any foreign tax credit and the advances and ITAN paid.

Common traps

The 1.5 percent minimum advance applies to revenue, not profit, so a loss making start up still prepays; art. 85 lets companies suspend advances from the February, March, April or May payment only under the conditions it sets.
Fees to a foreign parent that are booked but not paid by the annual return due date are not deductible that year (art. 37 a.4).
Unused foreign tax credits are lost; they cannot be carried forward or refunded (art. 88 e).
Expenses that benefit shareholders can be recharacterized as indirect distributions and taxed at an extra 5 percent on top of disallowance (art. 55).
A branch of a foreign company cannot use the MYPE regime and is deemed to distribute its profits at the annual return due date, triggering the 5 percent dividend tax.

Sources

Related: Peru country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

← Taxes in Peru: the core system for foreign investors, from the 29.5 percent corporate tax and 5 percent dividend withholding to IGV, interest limits, losses and SUNAT's review periodsWithholding tax on payments abroad from Peru: dividends, interest, royalties, technical assistance, services and the deductibility link →

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