Countries › Peru › Guide › 6. Taxes › 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 periods

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 periods

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

Peruvian companies pay 29.5 percent income tax on net income, and dividends paid abroad bear a final 5 percent withholding, so the combined burden on distributed profit is about 33 percent; small businesses below 1,700 UIT can pay 10 percent on their first 15 UIT. Other payments abroad are withheld at 4.99 percent (qualifying loan interest), 15 percent (technical assistance) or 30 percent (royalties, related party interest, other income). Sales bear an 18 percent IGV plus municipal tax, split 15.5 plus 2.5 percent in 2026 and moving to 14 plus 4 by 2029. Companies pay income tax monthly in advance, net interest is capped at 30 percent of EBITDA, losses carry forward under one of two systems, and SUNAT generally has four years to review.

USD figures use S/ 3.446 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 26 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 (DS 179-2004-EF, DL 1261), 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. 3, as of 2026-10-28 · in force
Withholding on dividends paid to non domiciled shareholders	5 %LIR art. 56 e) (DL 1541), as of 2026-10-28 · in force
Combined corporate tax and dividend withholding burden	33.025 %LIR art. 55 and art. 56 e), as of 2026-10-28 · in force
Withholding on qualifying foreign loan interest	4.99 %LIR art. 56 a), as of 2026-10-28 · in force
Withholding on interest paid to related foreign lenders	30 %LIR art. 56 j), as of 2026-10-28 · in force
Withholding on royalties paid abroad	30 %LIR art. 56 d), as of 2026-10-28 · in force
Withholding on technical assistance paid abroad	15 %LIR art. 56 f), as of 2026-10-28 · in force
Combined IGV plus IPM rate	18 %DL 821 art. 17 and DL 776 art. 76, as amended by Ley 32387, as of 2026-10-28 · in force
IGV rate for 2026 (excluding IPM)	15.5 %Ley 32387 art. 2, as of 2026-10-28 · in force
Municipal promotion tax (IPM) rate for 2026	2.5 %Ley 32387 art. 2, as of 2026-10-28 · in force
IGV rate from 2029 (IPM 4 percent)	14 %Ley 32387 art. 2, as of 2026-10-28 · in force
Net interest deduction cap	30 % of prior year tax EBITDALIR art. 37 a) (DL 1424), as of 2026-10-28 · in force
Loss carryforward, system a)	4 yearsLIR art. 50 a), as of 2026-10-28 · in force
Loss offset cap, system b) (unlimited time)	50 % of net incomeLIR art. 50 b), 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
Monthly taxes and advances due	12 business days of following monthCódigo Tributario art. 29 b), as of 2026-10-28 · in force
Statute of limitations (return filed)	4 yearsCódigo Tributario art. 43, as of 2026-10-28 · in force
Statute of limitations (no return filed)	6 yearsCódigo Tributario art. 43, as of 2026-10-28 · in force
Statute of limitations (withholding not paid)	10 yearsCódigo Tributario art. 43, as of 2026-10-28 · in force
Deadline to file a reclamación	20 business daysCódigo Tributario art. 137, as of 2026-10-28 · in force
Deadline to appeal to the Tribunal Fiscal	15 business daysCódigo Tributario art. 146, 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. Companies and other legal entities domiciled in Peru, which earn business income (third category income), pay income tax at 29.5 percent of their annual net income. The rate has applied since 1 January 2017. Net income is gross income less the expenses needed to produce it and keep its source, unless the law expressly prohibits the deduction. Special lower rates exist only for specific sectors under their own laws (agrarian sector under Ley 31110, aquaculture under Ley 31666, forestry under Ley 29763), and a legal entity also owes an additional 5 percent on indirect profit distributions, such as expenses that cannot be traced back for later control.
Cost to do it: No fee; the cost is the tax itself, settled through monthly advance payments and the annual return. Professional accounting and tax return preparation are a market cost not set by law.
Example: A Lima S.A.C. with net income of S/ 1,000,000 for 2026 owes S/ 295,000 of income tax, leaving S/ 705,000 of profit after tax. / About US$290,192 of net income at S/ 3.446 per dollar owes about US$85,607, leaving about US$204,585.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; art. 37 heading, 2016-12-10 official text · verified 2026-10-28

2. When a Peruvian company pays dividends or any other distribution of profits to a non domiciled shareholder, it withholds 5 percent as final tax. A Peruvian branch or other permanent establishment of a foreign company is deemed to distribute its profits on the due date of its annual income tax return, so the 5 percent applies to the profit available to the head office whether or not cash is sent. Other main rates for payments to non domiciled legal entities: interest on foreign loans 4.99 percent (cash loans must show the foreign currency entered Peru and the rate cannot exceed the lender's prime rate plus three points); royalties 30 percent; technical assistance 15 percent, with an audit firm report when the contract exceeds 140 UIT; and 30 percent for other income, which includes interest paid to related foreign lenders.
Cost to do it: No filing fee. The payer withholds and pays the tax to SUNAT in the monthly declaration; withholding not paid on time keeps SUNAT's collection right open for 10 years (see the last rule). An audit firm report is needed for technical assistance contracts above 140 UIT (S/ 770,000 in 2026); its fee is a market cost.
Example: From S/ 1,000,000 of pre tax profit: 29.5 percent corporate tax of S/ 295,000, a dividend of S/ 705,000, 5 percent withholding of S/ 35,250, and S/ 669,750 received abroad, a combined burden of 33.025 percent. / From a US$100 pre tax profit: US$29.50 corporate tax, a US$70.50 dividend, US$3.53 withheld, and about US$66.98 net to the foreign shareholder.Texto Único Ordenado de la Ley del Impuesto a la Renta (Decreto Supremo Nº 179-2004-EF), as amended by Decreto Legislativo Nº 1541 and Decreto Legislativo Nº 1424, Art. 56 letters a), d), e), f) and j), 2022-03-26 official text · verified 2026-10-28

3. Peru's value added tax is the Impuesto General a las Ventas (IGV), to which the Impuesto de Promoción Municipal (IPM) is added on the same base and under the same rules, so buyers see one combined 18 percent charge. Ley Nº 32387 of 16 June 2025 shifts revenue to municipalities without changing the total: the IPM rises by 0.5 percentage points a year from 1 January 2026 until it reaches 4 percent, and the IGV falls by the same amount until it reaches 14 percent. For 2026 the split is IGV 15.5 percent plus IPM 2.5 percent; the law's steps give 15 plus 3 in 2027, 14.5 plus 3.5 in 2028 and 14 plus 4 from 2029.
Cost to do it: No fee to register for IGV; it comes with the RUC tax registration. The cost is the tax on sales less IGV paid on purchases (credit), declared and paid monthly.
Example: An invoice for services worth S/ 10,000 in 2026 carries IGV of S/ 1,550 and IPM of S/ 250, for a total of S/ 11,800. / About US$2,901.92 of services carries about US$449.80 of IGV and US$72.55 of IPM, about US$3,424.26 in total.Ley Nº 32387, amending art. 17 of Decreto Legislativo Nº 821 (Ley del IGV e ISC) and art. 76 of Decreto Legislativo Nº 776 (Ley de Tributación Municipal), Art. 2; fourth final complementary provision; first and third complementary amending provisions, 2025-06-16 official text · verified 2026-10-28 · changed: From 1 January 2026 the 18 percent total is split IGV 15.5 percent plus IPM 2.5 percent (previously 16 plus 2), with further 0.5 point shifts each year through 2029 to IGV 14 plus IPM 4. The total charge to the buyer stays at 18 percent.

4. Domiciled companies pay income tax monthly in advance. Each month they pay the higher of two amounts: monthly net revenue multiplied by a coefficient (prior year tax divided by prior year net revenue), or 1.5 percent of monthly net revenue. Taxes determined monthly, advances and monthly payments on account are due within the first 12 business days of the following month, and taxes determined annually are paid within the first three months of the following year, with the annual return filed in the form and on the dates SUNAT sets.
Cost to do it: No fee to file; late payment accrues interest and fines under the Código Tributario.
Example: A new company with no prior year tax and S/ 2,000,000 of net revenue in a month pays an advance of S/ 30,000 (1.5 percent), credited against its 2026 annual tax. / About US$580,383 of monthly revenue means an advance of about US$8,706.Texto Único Ordenado de la Ley del Impuesto a la Renta, as amended by Ley Nº 29999; Texto Único Ordenado del Código Tributario (Decreto Supremo Nº 133-2013-EF), as amended by Ley Nº 30524, LIR art. 85 first paragraph letters a) and b) and art. 79; Código Tributario art. 29 letters a) and b), 2013-03-13 official text · verified 2026-10-28

5. Net interest (interest expense minus interest income) is deductible only up to 30 percent of the previous year's tax EBITDA, defined as net income after loss offsets plus net interest, depreciation and amortization. Disallowed net interest can be carried to the next four years, subject to the same cap. The cap does not apply to taxpayers with net revenue of 2,500 UIT or less in the year (S/ 13,750,000 in 2026), to banks and insurers, or to qualifying public infrastructure and public private partnership projects, and interest on locally placed public bond issues is deductible even above the cap.
Cost to do it: No fee; the cost is the tax on disallowed interest.
Example: A company with prior year tax EBITDA of S/ 10,000,000 can deduct up to S/ 3,000,000 of net interest; S/ 4,000,000 of net interest leaves S/ 1,000,000 disallowed, adding S/ 295,000 of tax unless used in the next four years. / About US$2,901,915 of EBITDA allows about US$870,575 of net interest.Texto Único Ordenado de la Ley del Impuesto a la Renta, as amended by Decreto Legislativo Nº 1424, Art. 37 letter a) numerals 1 and 2, 2018-09-13 official text · verified 2026-10-28

6. A domiciled company can offset a net business loss in one of two ways, chosen in the annual return: system a) against net income of the four following years, with any balance then lost; or system b) with no time limit, but only against 50 percent of each later year's net income. If the company does not choose, SUNAT applies system a), and the choice can only be changed once accumulated losses are used up.
Cost to do it: No fee; the choice is made in the annual return.
Example: A 2025 loss of S/ 2,000,000 and 2026 net income of S/ 3,000,000: system a) leaves S/ 1,000,000 taxable (S/ 295,000 of tax); system b) leaves S/ 1,500,000 taxable (S/ 442,500) and carries S/ 500,000 forward with no expiry. / About US$580,383 of loss against about US$870,575 of income: about US$290,192 taxable under system a) and about US$435,287 under system b).Texto Único Ordenado de la Ley del Impuesto a la Renta, as substituted by Decreto Legislativo Nº 970, Art. 50, 2006-12-24 official text · verified 2026-10-28

7. The Régimen MYPE Tributario lets small domiciled businesses pay annual income tax at 10 percent on the first 15 UIT of net income and 29.5 percent on the rest. Businesses with net revenue above 1,700 UIT in the prior year are excluded, and so are branches, agencies and other permanent establishments of foreign entities and businesses linked by capital, directly or indirectly, to others when their combined net revenue exceeds that limit. A business that passes 1,700 UIT during the year moves to the general regime for that whole year.
Cost to do it: No fee; a business opts in with the monthly return for its start month, filed on time.
Example: With 2026 net income of S/ 200,000: 10 percent on the first S/ 82,500 (15 UIT) is S/ 8,250 and 29.5 percent on the remaining S/ 117,500 is S/ 34,662.50, a total of S/ 42,912.50 against S/ 59,000 under the general regime. / About US$58,038 of net income owes about US$12,453 in total, against about US$17,121 under the general rate.Decreto Legislativo Nº 1269 (Régimen MYPE Tributario del Impuesto a la Renta), Art. 1, art. 3, art. 5 and art. 9, 2016-12-20 official text · verified 2026-10-28

8. SUNAT's power to determine tax, demand payment and impose fines expires after 4 years, or 6 years if the return was not filed, and 10 years when a withholding or collection agent did not pay over the tax it withheld. Taxpayers have 4 years to claim offsets or refunds. For annual taxes the period runs from 1 January after the filing deadline. To dispute an assessment or fine, the taxpayer files a reclamación with SUNAT within 20 business days of notice, and can then appeal to the Tribunal Fiscal within 15 business days (30 business days for transfer pricing assessments).
Cost to do it: Filing a reclamación or appeal carries no SUNAT fee. Counsel fees are a market cost not set by law.
Example: A 2026 annual return due in early 2027 starts the clock on 1 January 2028, so SUNAT can normally review 2026 until the end of 2031. / An assessment of about US$100,000 (S/ 344,600) must be claimed within 20 business days of notice; if SUNAT rules against the claim, the appeal to the Tribunal Fiscal must be filed within 15 business days.Texto Único Ordenado del Código Tributario (Decreto Supremo Nº 133-2013-EF); art. 43 as substituted by Decreto Legislativo Nº 953; art. 137 and art. 146 as amended by Decreto Legislativo Nº 1528, Art. 43, art. 44 numeral 1, art. 137 numeral 2 and art. 146 first paragraph, 2013-06-22 official text · verified 2026-10-28

Tax	Rate	Who pays or withholds	When	Rule
Corporate income tax (general regime)	29.5% of net income	Domiciled company or branch	Monthly advances (higher of coefficient or 1.5% of revenue); annual return in the first three months of the next year	LIR art. 55, 85; Código Tributario art. 29
Régimen MYPE Tributario	10% up to 15 UIT (S/ 82,500), 29.5% above	Domiciled businesses with revenue up to 1,700 UIT (S/ 9,350,000); not branches of foreign entities	Monthly and annual	DL 1269 art. 3, 5
Dividends to non domiciled shareholders	5%	Paying company withholds; branch profits deemed distributed on the annual return due date	Monthly declaration after payment	LIR art. 56 e)
Interest on qualifying foreign loans	4.99%	Peruvian borrower withholds	Monthly declaration	LIR art. 56 a)
Interest to related foreign lenders, other income	30%	Peruvian payer withholds	Monthly declaration	LIR art. 56 j)
Royalties	30%	Peruvian payer withholds	Monthly declaration	LIR art. 56 d)
Technical assistance	15%	Peruvian payer withholds; audit report above 140 UIT	Monthly declaration	LIR art. 56 f)
IGV plus IPM	18% total (15.5% + 2.5% in 2026)	Seller charges; credit for IGV on purchases	Monthly, within 12 business days of the following month	Ley 32387; Código Tributario art. 29 b)

Peru's main taxes for a foreign owned company in 2026, from the official texts cited in the rules above

Worked example

US$100 profit out of Peru: a Peruvian S.A.C. earns US$100 before tax, pays US$29.50 of corporate tax and distributes US$70.50; it withholds 5 percent (US$3.53) and the foreign parent receives about US$66.98. In soles at S/ 3.446: S/ 344.60 of profit, S/ 101.66 of tax, a S/ 242.94 dividend, S/ 12.15 withheld and S/ 230.79 net.
Peru has no double tax treaty with Argentina (Peru is not on Argentina's official list of treaties), so an Argentine parent faces the 5 percent Peruvian withholding with no treaty reduction and relies on Argentine domestic relief rules; see The Argentine Thread guide for the Argentine side.

Step by step

Register the company or branch with SUNAT to get its RUC before invoicing; IGV and income tax obligations start from the declared start of activities.
Choose the income tax regime in the first monthly return: the general regime, or the Régimen MYPE Tributario if eligible (branches of foreign entities are not).
Every month, within the first 12 business days of the following month on the dates SUNAT sets, file and pay IGV plus IPM, the income tax advance, and withholding on payments to non domiciled parties.
Before paying interest abroad, document that loan funds entered Peru and that the rate is within the prime plus three points cap to support 4.99 percent instead of 30 percent.
File the annual income tax return within the first three months of the following year on SUNAT's schedule, and choose the loss carryforward system in the first return with a loss.
Keep records for at least the four year review period (six if a return was not filed), and calendar 20 business days to dispute any SUNAT assessment.

Common traps

Interest to related foreign lenders, and any interest on loans whose cash never entered Peru, is withheld at 30 percent, not 4.99 percent.
A branch pays the 5 percent dividend tax even when it keeps the cash in Peru, because its profits are deemed distributed on the annual return due date.
The 30 percent of EBITDA interest cap uses the previous year's EBITDA, so a company whose prior year EBITDA was low or negative can find most of its interest disallowed for the year.
Not choosing a loss system in the return means SUNAT applies the four year system, and the choice cannot be changed while losses remain.
Withholding that is collected but not paid over keeps SUNAT's collection right open for 10 years, not 4.
The IGV and IPM split changes every 1 January until 2029; invoicing systems and price lists must show the right split even though the 18 percent total does not change.
Technical assistance above 140 UIT per contract (S/ 770,000 in 2026) needs an audit firm report to SUNAT to support the 15 percent rate.

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

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