Taxes and Tax Schemes in Peru | What You Need to Know in 2025

Peru, a vibrant South American nation known for its rich cultural heritage and diverse economy, operates a comprehensive tax system that reflects its commitment to economic development and fiscal stability. Located in the western part of South America, Peru has been working to create an attractive environment for both local and international businesses while maintaining a balanced approach to taxation.

The Peruvian economy is characterized by its diversity, with strong sectors including mining, agriculture, manufacturing, services, and increasingly, technology and renewable energy. The tax system is designed to support economic growth, attract foreign investment, and provide sustainable revenue for national development.

The expat community in Peru continues to grow, particularly in sectors like mining, international trade, technology, and professional services, drawn by the country's economic opportunities and strategic regional position.

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Peruvian Income Tax

Peru employs a progressive personal income tax system with multiple tax brackets:

Tax brackets for 2025:

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Social security contributions (as of 2025):

• Pension System (ONP/AFP):
  • Employee contribution: Varies by pension system (private or public)
  • Employer contribution: Varies by sector and employment type
• Health Insurance:
  • Employee contribution: Approximately 9% of gross salary
  • Employer contribution: Varies by sector

If you want to have a better understanding of the taxes you should pay on personal income in Peru, you can use the personal tax calculator in the Taxation section of the Peru page.

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Peruvian Tax on Overseas Income

Peru's approach to foreign income is based on tax residency:

1. Residents: Taxed on worldwide income
2. Non-residents: Taxed only on Peru-sourced income

Residency is determined by:

• Spending more than 183 days in Peru within a 12-month period
• Having a permanent home in Peru
• Maintaining primary economic interests in the country

Special provisions include:

• Double taxation relief through bilateral treaties
• Specific rules for expatriate workers
• Foreign income reporting requirements

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Peruvian Tax on Investments

Investment income receives specific tax treatment:

• Dividends:
  • Taxed at 5% for resident individuals
  • Different rates for corporate recipients
• Capital Gains:
  • Taxed at 5% for individuals
  • Different rates for securities and real estate transactions
• Interest Income:
  • Varies by type of investment and investor status
  • Typically ranges from 5% to 30%
• Rental Income: Taxed at progressive income tax rates
• Cryptocurrency: Emerging regulations with tax implications

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Corporate Taxation

Corporate tax structure is designed to support business growth:

• Corporate Tax Rate: 29.5%
• Additional Temporary Tax: 2% on net income for companies with annual revenues exceeding PEN 2,500,000
• Value Added Tax (VAT):
  • Standard rate: 18%
  • Some essential goods and services have reduced rates
• Withholding Tax:
  • Varies by type of payment and recipient status
• Special Economic Zones: Tax incentives for specific industries

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Special Tax Regimes

Peru offers several specialized tax arrangements:

1. Mining Sector Tax Regime
2. Agricultural Sector Tax Benefits
3. Small and Medium Enterprise Tax Regime
4. Research and Development Incentives
5. Export-Oriented Business Incentives

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Regional Comparison

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Tax Planning for Peru

Effective tax management requires a strategic approach:

1. Residency Status Optimization
2. Investment Strategy Alignment
3. Comprehensive Documentation
4. Professional Consultation

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