The head of the Ministry of Economy and Finance (MEF), Pedro Francke, reported that the Government plans to charge a higher rate of Income Tax to people with incomes greater than S / 300,000 per year, this in line with the tax reform.
“This IR is a tax that is paid on natural persons progressively; that is to say, for the first S / 300,000 the current rates would not be modified, for the excess of that amount they would pay an additional rate ”, explained Francke.
He added that these rates in Latin America are around between 31% and 35%, while in Peru it is 29%, so there is room to tax a little more.
The Minister of Economy explained that this measure would reach less than 0.5% of taxpayers with higher incomes.
It should be noted that the Executive submitted a bill to the Congress of the Republic to request tax, fiscal, financial and economic reactivation powers to implement said measures.
Tax deduction
Francke noted that changes would also be made to the cap on taxpayers who can deduct taxes.
And he explained that currently people who earn up to S / 528,000 per year are allowed to deduct up to S / 105,000, which is discounted and no taxes are paid.
“It seems to us that this amount is excessive, we are thinking of possibly reducing it to S / 300,000. It is not about taxing the middle class but it does seem to us that whoever earns S / 500,000 is a fairly large amount, “he concluded.
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