The head of the Ministry of Economy and Finance (MEF), Pedro Francke, reported, this last Friday, November 12, that an adjustment to the tax on real estate rentals (currently 5%) does not increase the payment, but will reduce it.
During his presentation to the Working Group on the Expansion of the Tax Base, Evaluation and Review of Requirements for the Entry of Peru to the OECD of Congress, the public official explained a little more the Executive’s proposal.
“It must be made clear that our measure for the vast majority of taxpayers does not increase the payment, but reduces it, because today 5% is paid regardless of the amount of rent,” said Francke.
Thus, the minister explained that he will seek that the adjustment allows the existence of an increasing and gradual stretch that includes a non-taxable section as is done in the fourth category income.
“On a progressive scale, all those who are below the non-taxable minimum would not pay the rent, in that sense we are benefiting all those who have considered rent as a form of savings; as long as their income does not pass to a relatively significant level ”, he warned.
Along these lines, he admitted that his office analyzes in detail how much deductible expenses would be “that are reasonable in terms of rent.”
In addition, he assured that “in the beginning, 95% of the people will pay with nothing or less taxes. Only 5% – the preliminary calculations that exist – are those that could be paying more in the case of rents ”.
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