Branches and permanent establishments of foreign companies that are located in Peru and non-resident entities are taxed only on income from Peruvian sources.
Companies that have not commenced productive operations with a pre-production stage equal to or longer than two years may resort to a special system to obtain the advanced recovery of the VAT levied on certain acquisitions provided that they execute an investment agreement with the state.
The specific goods which are subject to excise tax include fuel, cigarettes, beer, liquor, and vehicles.
Tax authorities have discretionary faculties to exercise their auditing duties, which are not conducted on a routine cycle but rather on a variable basis.
The annual tax returns must be filed by the end of March or beginning of April, depending on the taxpayer number.
[3] Currently, in order to avoid double taxation, Peru has signed and ratified treaties with the following countries: Brazil, Chile, Canada, Portugal, South Korea, Switzerland; and Mexico.
Negotiations to conclude tax treaties with Italy, Japan, the Netherlands, Qatar, Singapore, Thailand and the United Kingdom, and renegotiations with Spain, still continue.
578 is applicable for avoiding double taxation between Andean Community member countries, as well as for preventing tax evasion.