The Peruvian government made official the Law 31828called the Young Entrepreneur Law, which proposes tax incentives for companies made up of young people between the ages of 18 and 29 who hire other young people of the same age from 2024.
Among the main changes, the taxpayer subject to the general income tax (IR) regime or to the Mype Tax Regime (Remype) that hires one or more new workers, for the purposes of determining the income for the years 2024 and 2025, may apply an additional deduction equivalent to 50% of the basic remuneration paid to the new worker, regardless of their working hours and its contractual modality.
As mentioned before, the worker is, at the time of hiring, between 18 and 29 years old, and must not be registered in the electronic payroll of one or more companies in a period of 12 months prior to the start date of work. The worker’s basic monthly remuneration will not exceed S/1,700.
In the case of workers whose remuneration is variable or imprecise, the requirement is considered fulfilled if the monthly average of remuneration received during the months of January to December of the years 2024 and 2025 does not exceed this same amount of S/1,700.
A law out of focus
The tax official Rafo Inurritegui points out that, instead of promoting youth employment, this new law “incentivizes failure”, since it does not take into account that, statistically, the bulk of new entrepreneurs fail in that age range, even when the device “inadvertently” benefits the informal that becomes formal. But earning up to S/1,700 to apply is not very seductive.
“If you are starting out as an entrepreneur, it is highly likely that your income will not exceed S/525,000 per year. For IR purposes, the Special Regime (RER) is more convenient than the General Regime or Remype, and pay 1.5% of income with almost no administrative provisions, such as books”, he mentions.
The key
Advantages. In public procurement processes for goods, services or works, companies made up of young people between the ages of 18 and 29 will have an additional score bonus of 5% in the technical proposal.
Source: Larepublica
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