What tax regime applies for your company formation in Peru?
When setting up a company and formalizing it in Peru, you must know that a fundamental part of the process is to know the accounting and tax requirements that must be fulfilled for a successful management, since the country has tax rules that have evolved over time to adapt to a globalized and changing world.
In this article we will explain in general terms the tax regimes and their characteristics for a better decision at the moment of setting up your company and define under which one you want to register it.
What are tax regimes?
A tax regime is defined as the manner in which tax payments are made and which amount is due. It is divided into different categories and you can choose one of them depending on the type and size of your business.
Any person, whether natural or legal, who is about to start a business must register before the Peruvian tax authority, SUNAT, and must choose the tax regime to which they want to belong.
There are four tax regimes considered, which are the following:
New Single Simplified Regime (NRUS),
Special Income Tax Regime (RER)
MYPE Tax Regime (RMT) and
General Regime (RG).
1. New Simplified Single Regime (NRUS):
Only natural persons can apply and they only issue sales tickets. They only have to make a single monthly payment online or in banks; and this payment will depend on the amount of income or purchases made in the month.
Among the ventures that can be in this regime are stores, market stands, shoe shops, bazaars, small restaurants, hairdressers, among others.
Here are not required to use books or accounting records. Neither are they required to present annual declarations for the activities carried out.
Their income or purchase limit is up to PEN 96,000.00 per year and their value of fixed assets must not surpass PEN 70,000.00 not including properties and vehicles.
2. Special Income Tax Regime (RER)
This applies to individuals with business and legal entities that generate income from commercial and/or industrial activities or provide services. They issue all types of receipts.
They are only required to have a Purchase and Sales Register and they only have to present monthly declarations since they are not obliged to present annual declarations.
Their limit of income or purchases is up to PEN 525,000.00 annually and their value of fixed assets must not surpass PEN 126,000.00 not including land and vehicles.
They must only have a maximum of 10 workers per shift.
3. MYPE Tax Regime (RMT)
This regime is focused on micro and small businesses since it has benefits and tax conditions to help in their growth. Both natural and legal persons can apply, and they issue all kinds of receipts.
Accounting books are kept and presented according to the amount of income the company generates and the activities it performs. Also, it must make annual declarations.
The company’s net income must not exceed 1700 UIT (Tax Unit) per year. However, there are no limits on purchases, the value of fixed assets, or the number of workers. As of 2022, the UIT is 4,400 PEN.
4. General Regime (RG):
Medium and large companies, whether individuals with a business or legal entities, which generate third-category income, belong to this regime. They issue all types of receipts.
Accounting books are kept and presented according to the amount of annual income that the company generates and the activities it carries out. The Financial Statement and the Income Statement are prepared and must be considered when presenting the Annual Declaration.
It has no limit on income, purchases, the value of fixed assets, or the number of workers.
Get Assistance from Easyco Experts
If you are planning to establish your company in Peru, keep in mind that you must know how to choose the ideal regime for your business, therefore you must work hand in hand with specialists.
At Easyco you can count on professional experts to manage your company successfully and in accordance to local tax laws.