MEF: Tax reform will allow 1 million mypes to be formalized

Potentially more than 1 million micro and small companies (mypes) will join the new simplified tax regime, thus expanding the tax base and helping formalization in the country, according to an estimate by the Ministry of Economy and Finance (MEF).

This would be achieved with the measures proposed in the bill for the delegation of legislative powers, presented by the Executive Power to the Congress of the Republic, requested to legislate on tax and fiscal policy, competition in the financial system and for the reactivation economical.

The bill proposes the Simplification of Tax Regimes, for which it is proposed to create a simplified Income Tax (IR) regime for smaller companies, modifying the Single Simplified Regime, and eliminating the Special Income Tax Regime and the Mype Tax Regime.

This will discourage the atomization of companies that, in order to reduce their tax burden, are divided into smaller companies so as not to exceed the thresholds established by the different tax regimes.

The new design will also facilitate the determination of the IR, reduce the costs of compliance with tax obligations and promote the formalization of workers, as well as the use of payment vouchers and electronic books.

The proposed new simplified regime will help the formalization of companies, expanding the tax base, and with this it is expected to have a potential effect on the collection of 1,200 million soles per year.

Automatic RUC

Likewise, with the aim of improving tax formalization mechanisms, the norm proposes modifying the Law of the Single Registry of Taxpayers (RUC) in order to provide the National Superintendency of Customs and Tax Administration (Sunat) with the power to register ex officio in the RUC to people who show economic capacity and habitually operate selling goods or offering services without being registered.

“Thus, the tax base will be broadened, also considering subjects who can potentially carry out economic activities because they denote significant equity capacity or movements in the financial system,” said the MEF.

Likewise, it seeks to expand the use of the RUC to identify itself before public entities and in the documentation through which private goods or services are offered, even when digital electronic commerce platforms, social networks, web pages, emails are used. advertising, mobile applications, among others.

With this measure, it is estimated to Include 2.5 million taxpayers in the RUC, having an estimated effect on the collection of 450 million soles per year.

Massification of means of payment

In the framework of the formalization process, it is proposed to modify the threshold for the mandatory use of financial means of payment, reducing the amount of operations that are subject to the use of means of payment in order to spread the use of banking and the use of of means of payment in foreign trade and in the indirect sale of shares.

In this regard, it should be noted that people have been detected who subdivide operations in order not to pass the established threshold (1,000 dollars or 3,500 soles to use means of payment). The proposal to reduce the amount of operations that require the use of means of payment substantially improves the level of financial inclusion in the country and, therefore, the formalization of the economy and improvement of collection.

“It is important to remember that as part of the request for delegation of powers, they seek to work on rules that allow strengthening the administrative and supervisory capacity of Sunat, an entity that is already implementing administrative actions that also aim to increase the tax base, formalization and fight against the tax evasion and avoidance ”, concluded the MEF.