The Ministry of Economy and Finance (MEF) published last week the regulation of the law that establishes special depreciation regimes. These guidelines are intended to accelerate investment in construction and electric vehicles in the remainder of 2023 and 2024.
In this regard, the head of the MEF, Alex Contreras, explained that the promulgation of this regulation seeks to revive private investment through incentives such as accelerated depreciation of investment expenses, which allows the company to deduct the payment of their taxes.
“This measure is powerful because it allows accelerated depreciation of investment expenses. Before this regulation, if someone invested S/100 million, they could deduct S/5 million for 20 years, with this measure, those companies that invest in investments related to the sector constructionsuch as new factories, buildings for real estate purposes, may deduct up to S/33.3 million each year. This is a scheme that has been applied exceptionally and what it seeks is to accelerate investment in the construction sector, which has been falling in recent months due to the lower dynamism of private investment,” explained Contreras Miranda during his presentation on the country’s economic outlook.
Likewise, an accelerated depreciation is also being offered to investments in electric vehicles that promote the use of sustainable energy. This, with the aim of having more sustainable buses and cars that help reduce pollution.
Accelerated depreciation for investments in construction and electric cars. Photo: MEF
As an example, the Minister of Economy recalled that if a company decides to invest S/100 million in a fleet of new electric buses, it may deduct up to S/50 million per year for a period of two years.
“Specifically, this measure will generate greater liquidity for companies and lower tax payments. That is, you pay less taxes now and pay a little more later, so the cost for the State is small, but it generates an important incentive for the remainder of 2023 and 2024 to accelerate investment in these two sectors,” the official concluded.
Source: Larepublica
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