The SBS, in collaboration with the Superintendency of Securities Market (SMV) and the Central Reserve Bank of Peru (BCRP), have been actively working on further bills to regulate Fintech activity, and the SMV is to be the entity in charge of Fintech regulation and supervision.
From a tax perspective, Fintech is regulated by:
- General Sales Tax Law and its Regulations
- Income Tax Law and its Regulations
Corporate income tax
Fintechs come under the Income Tax Law, qualifying their income as business income, and are taxed at the rate of 29.5% or 10% per year, depending on the tax regime (outlined here):
MYPE Tax Regime (RMT)
RMT is the regime created for micro and small enterprises that generate third-class income with the aim of promoting their growth.
- Monthly tax: The income tax depends on the amount of income obtained (up to 300 UVT or S / 1,320,000 only pay 1% of the monthly net income, and if they exceed 300 UVT or S / 1,320,000 will be the one that results greater from applying the coefficient or 1.5%)
- Annual tax: The RMT allows to deduct the expenses related to the business from the income, in this way the tax on the final profit of the year is paid with the following tranches:
- Profit tranche: Up to 15 UVT or S/ 66,000, utility rate: 10%
- Profit tranche: More than 15 UVT or S/ 66,000, tax on the utility: 29.5%
- Companies with annual net income exceeding 1700 UVT or S/ 7,480,000 (c. US$1,961,119.31) in the previous year.
- Branches, agencies, or any other permanent establishment of companies incorporated abroad.
This regime is aimed at medium and large companies that generate third-class income. In this regime there are no income limits. The advantage of this regime is that companies can develop their business in any activity and without income limits.
- Monthly tax: The income tax is determined by applying the coefficient or 1.5% on the monthly net income, whichever is greater
- Annual tax: It allows to deduct the expenses related to the business from the income, in this way the tax on the final profit of the year is paid with a rate of 29.5%
Deductibles for wear and tear, or obsolescence of fixed assets. The maximum accepted tax rates depend on the type of asset, with data processing equipment set at 25%.
Rate of 18%.
Peru’s regulators are actively working to maximise on LATAM’s Fintech boom.
If you’d like more information on operating in Peru, or how Auxadi’s accounting, tax and payroll services can make your life easier, simply get in touch with our team in Lima.