In order to generate an attractive market and increase the investment in Peru, on November 19th, 2016, the Minister of Economy and Finance, Alfredo Thorne, stated that the Peruvian Government has begun negotiations with the Governments of Singapore, Japan and Spain in order to ratify agreements aimed to avoid double taxation.

The double taxation occurs when several taxes affect an unique manifestation of wealth over the same tax period. Distinguishing between double economic taxation (when a single income is subject to more than one tax) and legal (when taxing the same taxable person for the same income from similar taxes), the most relevant for the purposes of this information is the Double international taxation, which occurs when a taxpayer is at the same time tax resident in two countries. Countries can resolve this double taxation unilaterally or bilaterally, through agreements.

Peru and Spain

In 2006, both countries agreed to start the process of ratification of an accord aimed to avoid the double taxation and tax evasion. An agreement that has not yet been ratified. Peru maintains agreements with Chile, Canada, the Andean Community, Brazil, Mexico, Portugal, Korea and Switzerland.

Likewise, in recent days, the governments of Peru and Japan have stated that they will start bilateral consultations for the signing of a convention in the next quarter to avoid double taxation and facilitate investments among their governments.