Tax powers will expire at the end of March

The Executive will have 90 days to legislate on economic and tax management, as well as in the fight against tax evasion and avoidance.

This after the delegation of powers requested by the Executive Power became official yesterday.

Thus, The Government may issue legislative decrees in the measures approved by Parliament until March 27, 2022.

The proposals that were finally delegated will allow generating an additional collection of S / 1,750 million (0.20 points of GDP), well below what the Ministry of Economy and Finance (MEF) was looking for with its tax reform, which guaranteed income annually for S / 12,000 million (1.5 points of GDP).

Decrees are prepared

By having a deadline, the MEF is already fine-tuning the legislative decrees, especially those that need to be published before the end of the year so that they can take effect during 2022.

Among those measures are the tax benefits that the aquaculture and forestry sectors would have. These industries would have reduced income tax (IR) rates and accelerated depreciation tax benefit.

The way in which the IR of tuna vessels that fish within Peruvian waters is calculated will also be modified. In addition, the exemption from VAT payment will be extended to staple products such as fruits, vegetables and greens.

Another of the measures contemplated is the standardization of the collection of a 2% surcharge for all large Business that request a tax stability agreement. Currently, this only applies to mining companies.

Likewise, measures will be implemented that seek to expedite the resolution of tax disputes. As well as the non-payment of vehicle equity tax for theft of the car.

Tax reform will be insisted

The changes to the mining tax regime and the increase in taxes for those with more income are not contemplated in the delegated powers, however, the head of the MEF, Pedro Francke, said that they will present bills in the next legislature.

“In those cases in which we do not have delegated powers, we will prepare and present the bills, insisting on agreement with the Congress of the Republic,” the official noted.