Agreement will be favorable for investments and trade in goods and services, according to the MEF.
The Minister of Economy and Finance, José Arista, reported that in November the second meeting with China will be held to draft a treaty that eliminates double taxation, as well as tax evasion and avoidance.
Said instrument It will be key to the integration between Peru and the Asian giant —one of our main commercial partners—not only in terms of the purchase and sale of goods and services, but also in investments.
What is double taxation? For example, a foreign company that generates its income in our market pays taxes to the Sunat as well as in its country of origin, so the tax rate in its accounts is usually higher and, according to specialists, it removes incentives for them to invest abroad.
“In parallel with this agreement we are improving the entire legal institutional framework, in which we can coexist in a more favorable way for both countries,” added Arista.
It is worth noting that China is the main destination for Peruvian exports: it covered 34% of total shipments in 2023, for more than US$33,000 million.
Arista emphasized that China has gradually gained space in the Peruvian economy, especially in mining, energy and transportation. The Chancay megaport falls into this bag. Here, the official pointed out that a Special Economic Zone is expected to be established to create commercial and industrial opportunities.
Trained at the Jaime Bausate y Meza University. In constant learning. Economics is the branch of journalism closest to the people and my duty is to be a bridge to information.
Source: Larepublica
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