The Executive power has submitted to the Congress of the Republic a bill to be granted the power to legislate on economic, financial and tax matters for 90 days, a term in which a total of 42 measures would be approved.
One of the measures that the Government Through legislative decree, in the event that Congress grants it the powers, it is the simplification of tax regimes, as the head of the Ministry of Economy and Finance (MEF), Alex Contreras, had advanced to La República.
Currently, Peru has four regimes: the General Regime; Single Simplified Regime (RUS); Special Income Regime (RER) and the Mype Tax Regime (RMT). However, the MEF would be choosing to repeal these last two so that the tax scheme is simpler and more orderly.
Also, according to MEF “The existence of various tax regimes has led, in some cases, to fiscal dwarfism or to companies manipulating their income so as not to move from simplified regimes to the General Income Tax Regime”.
In this way, it would only seek to maintain the General Regime and the RUS; In addition, the latter would undergo adjustments, since it seeks to create a simplified regime so that only subjects can be accommodated that, due to their organizational size, income level, and other characteristics, are considered as subsistence businesses.
Another of the modifications that the RUS would undergo is that the maximum income threshold would be determined annually and the list of economic activities excluded from said regime will be modified, as well as the incorporation of anti-avoidance measures to avoid the fragmentation of activities; and a single monthly fee will be set, which may be reduced as long as companies acquire goods or services supported by electronic payment vouchers or have workers registered on the payroll.
Walker Villanueva, partner at Philippi Prietocarrizosa Ferrero DU & Uría Abogados, was in favor of eliminating both regimes. In addition, he indicates that this simplification aims at formalization and, therefore, expand the number of taxpayers.
“A single regime must be regulated that is harmonized with labor legislation, and the purpose is that this regime encourages formalization,” he notes.
Within the request for powers, the relaxation of the conditions to qualify as establishments whose acquisitions of goods offer the benefit of the return of the General Sales Tax (IGV) in favor of foreign tourists is also contemplated.
Tax exemption will also be sought for the importation of goods that are destined directly for the execution of the Lima and Callao Mass Transportation Electric System Project.
Create fiscal cadastre to honest the property tax
The Executive Branch also requested powers to create and establish measures for the conformation, consolidation and maintenance of the fiscal cadastre to be made available to the municipalities.
In Villanueva’s opinion, With this measure, the MEF is giving more importance to the property tax, for which it would be seeking to have more clarity on the value that is charged.
“The property tax is charged between 30% and 40% of the market value of the properties. It would be necessary to think about making the cadastre and also gradually honesting the value on which the property tax is charged. Collection would increase, but progressively and reasonably,” the expert told this outlet. “A system must be regulated. single regime that is harmonized with the labor legislation”.
Alex Contreras. Minister of Economy and Finance
“What we want to do is simplify the regime to basically just two: a general one and a very specific regime, limited to very small businesses, added to a whole strategy on Sunat’s side.”
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