Eternity Law International Ready-made company in Peru

Ready-made company in Peru

Published:
April 29, 2020

What is included:

  • Ready-made company in Peru,
  • Local bank account,
  • Legal address

Cost: on request.

In regard to tax issues companies are divide into local and foreign (resident and non-resident). A company would be qualified as local if it is registered in Peru.

Local entities pay taxes on income received both domestically and abroad. Foreign companies and their branches pay in the same but only on funds received domestically.

Income from foreign sources received by locals meets income tax. This taxation is based on the same principles as income from Peruvian sources, but with some amendments.

Permanent establishments’ taxes consist of corporate tax and money transfer tax. Subsidiaries are taxed as standard companies with the same rates.

All income received by the entity meets taxation. Among that income there are capital gains. Standard business expenses can be minused in calculating taxable income.

The income tax is the main corporate tax. The standard rate is 29.5%. However, other rates for various types of activities are established by law.

Usually, these are areas in which the state is trying to support medium and small businesses.

But there are other examples. For investors in the mining and hydrocarbon sectors, there are so-called stabilization taxes. As a result, they have to pay in total of 31.5%.

An exception to this group of activities is the scope of natural gas production.

A little about reporting on this tax. The tax year, without the right to extend it, is limited to a calendar year. Advance payment system based on income derived every month.

Accordingly, companies pay 12 monthly payments. Revenues are measured on their own. Their total volume is indicated in the annual tax reporting.

Reporting documentation may be submitted before April 1 of the year next to the reporting.

As usual, VAT is applied to the sale of goods and the provision of services. However, there are also less mundane spheres of its application, separately emphasized in the legislation.

Among these areas are construction contracts, first-time real estate sales, and import. Entities have the right to apply for an early VAT refund, prior to the implementation of existing agreements.

For various areas, there are other ways to get a VAT refund.

The usual rate is 18%. There is also a reduced rate of 0%.

Companies subject to VAT are obliged keeping VAT ledgers. In addition to accounting, companies have the obligation of submiting VAT reports every month.

The accounting department of the company must compile quarterly, annual financial reports and provide declarations to the tax service. Contact us for more information.

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