In Peru, the responsibility of paying the Income Tax It falls to both workers and companies. However, this responsibility does not extend to all taxpayers, since those whose income does not reach the thresholds established by the current regulations They are exempt from this retention.
With the adjustment of the Tax Tax Unit (UIT) to S/5,350 In 2025, the exempt income threshold has also varied. This change directly influences Fifth Category workerswho could be free of retentions according to their income.
How much should you win to be exonerated from the fifth category tax in 2025?
The fifth category income tax applies to those who receive annual income higher than 7 UIT, equivalent to S/37,450 In 2025. This implies that if your monthly salary does not exceed S/2,675 (considering 14 remuneration per year)you will not be subject to this tax.
Tax lawyer Jorge Picón said that “the rule establishes that the tax is applied from a point called poverty.” This guarantees that people with income below that threshold do not suffer withholdings in their salaries.
How to calculate the fifth category income tax?
Annual income calculation
All the worker’s income is projected and added during the year, including bonuses.
7 UIT deduction
They are subtracted 7 Tax Tax Units (UIT), whose value varies annually. If the annual gross remuneration is less than this limit, the worker is exempt and no retention is made.
Application of rates according to income sections
- 8 % for the first section (from 0 to 5 UIT).
- 14 % for the second section (5 to 20 UIT).
- 17 % for the third section (from 20 to 35 UIT).
- 20 % for the fourth section (from 35 to 45 UIT).
- 30 % for the fifth section (more than 45 UIT).
Monthly tax distribution
The projected annual tax is discounted monthly as follows:
- January to March: The annual tax is divided by 12.
- April: Retentions are subtracted from January to March and the balance is divided by 9.
- May to July: Retentions are subtracted until April and the balance is divided by 8.
- August: Retentions are subtracted until July and the balance is divided by 5.
- September to November: Retentions are subtracted until August and the balance is divided by 4.
- December: The tax is adjusted considering the withholdings from January to November.
Who pays and who does not pay the fifth category tax?
Who must pay the tax:
- Employees in dependency relationship with annual income greater than S/37,450.
- People with contracts that give them similar benefits to those of the payroll.
Who should not pay the tax
- Independent workers with fourth category income that do not exceed S/3,755 per month.
- People whose annual income is below the limit established by the 7 UIT in force.
What is the fifth category income tax?
The National Superintendence of Customs and Tax Administration (SUNAT) considers fifth category income to the income obtained by work in dependency relationship. This includes salaries, salaries and any cash or in kind payment granted by an employer.
Unlike the fourth category income, those of Quinta do not require the presentation of a Annual Affidavit. However, workers must ensure that the withholdings made by the employer are correct, especially in periods in which the UIT increases.
Source: Larepublica
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