Peru corporate tax - guide for international expansion

Are you planning to expand your business operations to Peru? Understanding the country's corporate tax system is essential for making informed decisions about your South American expansion strategy.

Peru offers an attractive business environment with competitive tax rates and growing economic opportunities. However, navigating the local tax obligations requires careful planning and compliance with Peruvian regulations. Whether you're establishing a subsidiary or exploring new markets, having the right financial infrastructure is crucial for success. Wise Business can help streamline your international payments and manage multi-currency transactions as you establish your presence in Peru.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Peru Corporate tax rate in 2025

The standard corporate income tax rate in Peru is 29.5%. This rate is applied to the worldwide net income of companies considered resident in Peru for tax purposes (those incorporated in Peru). Companies incorporated abroad and considered non-domiciled are generally subject to an income tax rate of 30% over their gross Peruvian-source income.¹

Peru's corporate tax system applies to both resident and non-resident companies. Resident companies are taxed on their worldwide net income, while non-resident companies are only taxed on their Peruvian-source income. The tax is calculated on net taxable income for residents and is payable annually.¹

The country also imposes additional taxes on certain transactions, including a 5% withholding tax on dividends and other profit distributions made to non-resident entities. Furthermore, various withholding tax rates apply to payments to non-residents for items like royalties, service fees, and interest, with rates typically ranging from 4.99% to 30% depending on the specific type of income and whether certain requirements are met.²

Read more about Corporate Tax Planning best practices

How to pay corporate tax in Peru

Corporate tax payments in Peru are managed through SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria), the country's tax authority. Companies must register with SUNAT and obtain a RUC (Registro Único de Contribuyentes) number before commencing operations.³

The annual corporate tax return must be filed with the final tax payment due generally in the first week of April of the year following the tax year. The specific deadline is determined by the last digit of the company's RUC number.⁴

Companies are required to make monthly advance payments throughout the tax year. These payments are calculated as the greater of two amounts: 1.5% of monthly net income or the amount derived from applying a coefficient calculated by dividing the previous year's tax liability by the previous year's net income.⁴

If payments are made late, SUNAT charges daily interest at a rate that is currently 0.03% per day (equivalent to 0.9% per month) on the amount of the tax debt. Additionally, late filing or non-compliance penalties apply, which can vary depending on the specific infraction and the extent of the delay.⁴

Let's calculate the annual tax due for a company with a turnover of PEN 4.5 million (approximately $1.5 million USD at current exchange rates). Assuming a profit margin of 10%, the taxable profit would be PEN 450,000.

At Peru's standard corporate tax rate of 29.5% for companies above the threshold:

PEN 450,000 × 29.5% = PEN 132,750

When expanding your business to Peru, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to manage international finances. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in Peru

The steps to help your company stay compliant with Peru’s corporate tax regulations:^{5 6}

• Register for corporate tax: All companies established in Peru must register with the National Tax Authority (SUNAT). Under Peru corporate tax policy, resident entities are subject to a 29.5% corporate tax rate. To meet their liability, companies make 12 monthly advance payments (usually 1.5% of monthly revenues), which are credited against the final annual tax return.
• Meet filing deadlines: The tax year ends on December 31, and companies must file their annual return within the first three months of the following year using SUNAT’s PDT system. VAT (IGV) is declared monthly between the 12th–20th, depending on the company’s RUC number. Payroll and UBO registry updates also follow monthly and annual filing cycles.
• Avoid penalties: The penalty for late corporate tax filing can be significant, including fines and interest charges. Consistent reporting of both monthly and annual declarations is essential to remain compliant.
• Transfer pricing rules: Related-party transactions and dealings with low-tax jurisdictions must meet Peru’s transfer pricing standards. Intercompany services must pass the “benefit test” to show they provide economic value.

International Expansion to Peru

Peru has one of the most dynamic business environments in Latin America. It strategically combines natural resource wealth, macroeconomic stability, and pro-investment policies.

The country has recorded almost uninterrupted growth over the past 24 years and has the region’s lowest gross public debt-to-GDP ratio. Low inflation, strong international reserves, and a projected trade surplus of over USD 22 billion in 2024 highlight Peru’s solid financial position.⁷ The Central Reserve Bank projects a 119% increase in Foreign Direct Investment (FDI) in 2024 compared to the previous year, underscoring investor confidence⁸.

Businesses considering international expansion benefit from Peru’s extensive network of 22 trade agreements, 28 Bilateral Investment Treaties, and 10 double taxation avoidance agreements. These agreements provide access to leading economies, including the United States, China, and the European Union. At the same time, they integrate Peru into blocs like APEC and the Pacific Alliance. Special Economic Zones (SEZs) further enhance competitiveness by offering tax and customs incentives designed to attract both domestic and foreign capital.⁸

Notably, Peru’s economy is anchored by world-leading silver, gold, lead, and zinc reserves alongside thriving export-oriented agribusinesses producing avocados, blueberries, grapes, and asparagus.⁸ Tourism and hospitality are also on the rise, with Oxford Economics forecasting Peru to lead the region in growth in 2024, supported by the expanding accommodation and catering sector.⁹

Companies exploring expansion must also consider the local corporate framework. The Peru corporate tax rate, compliance rules such as the corporate alternative minimum tax, and eco-friendly corporate tax incentives are central to financial planning. Investors can file corporate tax online and may benefit from corporate tax outsourcing services to navigate regulatory updates and corporate tax changes efficiently.⁷

Below is what you should do when planning to establish your business in Peru:¹⁰

1. Conduct thorough market research to understand the local market and competition.
2. Prepare a solid business plan tailored to Peru’s business environment.
3. Choose the right legal entity type for your company.
4. Register the company with Registros Publicos (public registry).
5. Register with the tax authority SUNAT to obtain a fiscal number (RUC).
6. Obtain the municipal business license (licencia de funcionamiento).
7. Open a corporate bank account.

By following these steps, foreign investors can establish a compliant and sustainable presence in Peru. This provides a strong foundation for long-term growth in one of Latin America’s most promising markets.

Discover the top 5 best Corporate Tax softwares

Incorporation of Business in Peru

Incorporating a company in Peru follows a clear legal route that balances formal documentation and registry steps. The following are key steps to cover in your plan:¹¹

1. Choose the appropriate company type and decide on the capital structure and corporate address.
2. Search and reserve the company name via SUNARP’s online platform to prevent duplication.
3. Prepare the incorporation act and company bylaws, specifying purpose, capital contribution, duration and governance.
4. Make capital and asset contributions; monetary deposits are commonly required by banks, and at least 25% of subscribed capital must be paid up on founding.
5. Execute the public deed at a notary and request the notary to register the company at SUNARP through the SID platform.
6. Activate the company’s RUC through SUNAT by obtaining the SOL key (online or in person).
7. Legalise corporate and accounting books according to the chosen tax regime and expected turnover.

Obtain the municipal operating license (licencia de funcionamiento) and, when applicable, register foreign-sourced investment with ProInversión.

Primary Business Entities in Peru¹²

All companies established in Peru are subject to the General Law of Companies (Law No. 26887), approved by the Peruvian Congress on December 9, 1997. This law defines the framework for different business structures that international investors can choose from when setting up operations.

• Joint Stock Company (S.A.): Standard corporation with shareholders and limited liability, managed by a board and one or more managers. Registration typically takes 15 to 30 days.
• Closely-Held Corporation (S.A.C.): Hybrid structure for smaller groups (maximum of 20 shareholders). It provides limited liability, allows an optional board, and grants pre-emption rights on share transfers.
• Publicly-Held Corporation (S.A.A.): Designed for companies with a large shareholder base or those listed on the stock exchange. These entities are subject to oversight by the SMV.
• Limited Liability Company (S.R.L.): Member-based structure (2 to 20 members) without shares. Ownership transfers are often subject to first-refusal rights.

To further safeguard operations, engaging a qualified corporate tax lawyer early is advisable. They can assist with structuring capital contributions, fulfilling reporting obligations, and clarifying how far back a corporate tax return can be amended under Peruvian law.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires strategic planning and robust compliance systems. Companies should establish clear procedures for tracking income, expenses, and tax obligations in each country where they operate.

Maintain detailed documentation of all business transactions and ensure compliance with local transfer pricing regulations. Peru follows OECD guidelines for transfer pricing, requiring companies to maintain documentation that demonstrates arm's length pricing for related-party transactions.

Leverage double taxation agreements (DTAs) to minimize tax burdens. Peru has signed DTAs with over 30 countries, including major economies like the United States, the United Kingdom, Canada, and most European Union nations. These agreements help prevent double taxation and provide reduced withholding tax rates on dividends, interest, and royalties.

Consider the timing of income recognition and expense deductions to optimize tax efficiency while remaining compliant with local regulations. Regular consultation with local tax advisors ensures your business stays current with changing regulations and takes advantage of available incentives or deductions.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Peru efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Peru

Who is liable for corporate tax in Peru?

All companies incorporated in Peru are considered tax residents and liable for corporate tax on their worldwide income. Non-resident companies are liable for tax only on Peruvian-source income. This includes income from business activities conducted in Peru, capital gains from Peruvian assets, and certain passive income such as dividends, interest, and royalties from Peruvian sources.

Are there any tax incentives for businesses in Peru?

Yes, Peru offers several tax incentives to promote investment and economic development. The Amazon region benefits from reduced corporate tax rates, with some areas enjoying rates as low as 5% for qualifying activities. Additionally, companies investing in research and development can deduct up to 175% of qualifying R&D expenses. Export-oriented businesses may also benefit from various incentive programs and duty drawback schemes.

What is the tax treatment of dividends in Peru?

Dividends distributed by Peruvian companies to resident shareholders are generally not subject to additional tax at the shareholder level, as the corporate tax is considered a final tax. However, dividends paid to non-resident shareholders are subject to a 5% withholding tax, which may be reduced under applicable double taxation agreements.

What is the process for registering for corporate tax in Peru?

Companies must first register with SUNAT to obtain a RUC number, which serves as the tax identification number. This registration must be completed within 30 days of incorporation or commencement of operations. The process involves submitting incorporation documents, identifying company representatives, and providing details about business activities. Registration can be completed online through SUNAT's portal or at authorized service centers.

What are the common pitfalls to avoid regarding corporate tax in Peru?

Common mistakes include failing to make timely advance payments throughout the year, inadequate transfer pricing documentation for related-party transactions, and incorrect classification of income sources for non-resident companies. Additionally, many businesses underestimate the importance of maintaining proper accounting records in Spanish and in accordance with Peruvian accounting standards.

Sources used in this article:

1. PwC Tax Summaries: Peru Taxes on Corporate Income
2. PwC Tax Summaries: Peru Withholding Taxes
3. SUNAT (National Superintendence of Tax Administration) Official Portal
4. PwC Tax Summaries: Peru Tax Administration
5. Dentons: Global Tax Guide to Doing Business in Peru
6. Biz Latin Hub: Peru Tax and Accounting Requirements
7. EY: Peru Business Investment Guide
8. Invest Peru: Why Invest in Peru
9. Invest Peru: Tourism Investment Sector
10. RGB Advocats: Opening a Business in Peru
11. Invest Peru: How to Create a Company Guide (PDF)
12. LimaEasy: Company/Corporation Types in Peru

Sources last checked 07/10/2025