The draft Law No. 4007 has been approved by Law No. 30296, issued on 31.12.2014, corresponding to the fourth package of measures proposed by the government in order to revive the economy, slow its pace of slowdown and boost economic growth.

I Modifications on the computable costs and non – deductible expenses

Both Article 20 ° and Article 44 of the TUO LIR, corresponding to cost computable and non-deductible expenses respectively, have incorporated a new formal restriction with respect to the issuer of the payment. Thus regulating both, the computable cost and/or the expense that now won’t be deductible:

• Having been proved with receipts omitted by taxpayers at the date of issue.
• Registration termination in Taxpayers Register, been notified by SUNAT.

II Modification regarding dividends

a. Assumptions that qualify as Dividend:
Form tax year 2015 it will be qualified as a dividend any credit to the extent of earnings and free reserves that are granted in favor of the partners or owners, regardless of the period fixed for his return.

b. Applicable fees:
The Act modifies the rates applicable to dividends and other profit distribution, setting a gradual increase from fiscal year 2015, according to the following:

Applicable fees

III Modifications on applicable rates to labor income and income from foreign sources

a. Cumulative progressive scale:
Another change made by the Act refers to tax rates applicable to natural persons by labor income and foreign source income. Thus, the cumulative progressive scale effective from 01.01.2015, is as follows:

Cumulative progressive scale

It remains the 7 ITU deduction applicable to the sum of labor income.

b. Fourth category revenue withholding:
Modification on retention percentage and/or payments on account for fourth category income, specified in Articles 74 ° and 86 ° of the TUO LIR respectively.
So, as of 1/1/2015, 8% on monthly gross income shall apply by way of withholding and/or payments on account for fourth category income paid or credited

IV Income tax on Third Category income

The Act amends the income tax rate applicable to third category net income, establishing a gradual reduction from 01.01.2015 according to the following:

Income tax on Third Category income

The eleventh supplementary final provision provides that, in order to determining Third Category Income Tax payments on account of 2015, the ratio must be multiplied by 0,9333. This is due to the reduction in the rate of 30% to 28% that precisely corresponds to that factor.

Similarly to the reduced rates applicable to labor income, this amending aims to reduce the tax burden and thereby encourage reinvestment resources and business growth.