Economy Commission expands list of fourth and fifth category IR deductible expenses

The Economic Commission of the Congress of the Republic approved bill 6331/2023-CR, which modifies the single ordered text of the Income Tax Law and expands the threshold of deductible expenses for fourth and fifth category income .

The project by Congresswoman Rosangella Barbarán modifies article 46 of the Single Ordered Text (TUO) of the aforementioned law, approved by supreme decree 179-2004-EF, in order to incorporate within the deductible expenses of fourth and fifth income category to the concepts of own expenses for education and children, as well as the health expenses of the spouse and children.

Similarly, expenses for interest on mortgage loans or interest on loans for the construction or acquisition of a first home, expenses for purchasing food, expenses for food for alimony children determined by a final judicial resolution or agreement will also be included for deduction. conciliation, expenses for purchases of air or land tickets to the interior of the country, and expenses for veterinary services.

The initiative, which was approved with 12 votes in favor, 7 against and 1 abstention, also seeks to benefit, especially, the “middle class of the country”, which, according to its authors, “is the vast majority of the Peruvian people “.

“There are congressmen (among whom I count myself) who are pursuing master’s degrees or diplomas, and I believe that they should pay less taxes because they are making an investment not only personally but also for the rest of the country,” Barbarán highlighted.