Peru » Taxes

General Sales Tax	Income Tax	VAT

General Sales Tax

The General Sales Tax (locally known as IGV, Peruvian value added tax) applies to the sale of goods and chattels, imports, services rendered or utilised in the country, as well as to construction contracts and to the first real estate sold by its constructor in the country.

Income Tax

Income Tax is annually applied to every income earned by individuals classified as domiciled or non-domiciled. Domiciled taxpayers are subject to the following income tax rates: 30% of net income Tax payable by corporate bodies, partnerships and joint venture on third-category income. 15% to 30% on annual aggregate net income. Tax payable by individuals on first, second, fourth and fifth income categories. Non-Domiciled taxpayers are subject to the following income tax rates: 10% sole rate. Tax payable by individuals on second income category. 30%. Tax payable by individuals or companies earning income from Peruvian sources directly.

VAT

Regarding the Sales Tax (Value Added Tax), the tax rate is 18% and is applied to the full revenue of the sale of movable goods and services performed or used by domiciled companies.