What is the ITF tax and from what amount is it applied to your financial transactions?

The ITF is the Tax on Financial Transactions, created in 2004 by the National Superintendency of Customs and Tax Administration (Sunat), which is generated when you make a deposit or transfer, whether in national or foreign currency. The rate is 0.005% of the total value of the operation you carry out; That is, if you made a deposit of S/2,000 to another person’s bank account, then the financial institution will charge you S/0.10 for that transfer.

From what amount does the ITF tax apply?

The ITF is applied to any amount, regardless of the amount, and its objective is to supervise all money operations through legal means. Below we detail which operations the ITF applies to:

• For payments to companies in the financial system
• To acquire cashier’s checks, bank certificates, traveler’s checks or other financial instruments
• For money orders or transfers to natural or legal persons.

What operations are exempt from ITF tax?

The following transactions are not subject to ITF tax:

• Deposits made between the accounts of the same person
• The accreditation or debit in the accounts used by the Pension Fund Administrators (AFP)
• Deposits to workers’ Compensation for Time of Service (CTS) accounts
• Deposits made by the employer to pay salaries or pensions
• The accreditation or debit in the accounts used only by ATM network administrators, credit and debit card operators and recognized retailers as a means of payment.

How much is the Financial Transaction Tax rate?

The rate of Financial transaction tax It is 0.005% of the total value of the operation you carry out. For example, if you make a transaction for S/4,000, the bank will charge you S/0.20 for said operation.