2021 gives us new tax requirements and exemptions in Peru, most of which are good for taxpayers. These changes include; changes to depreciations, ITAN refunds, a new process which includes a bank deposit, and relief from some infractions.
We give you a brief overview here and recommend you contact your Auxadi Tax Team for more information.
Reminder: Declarations are Due!
Firstly, the paperwork.
The Auxadi Tax Team give you a reminder of the forms and expiration dates for the declaration and payment of the Annual Income Tax (Corporation Tax) and ITF for the 2020 period.
The relevant forms to use for filing are:
- Form No. 709: Annual Rent, available as of February 15, 2021.
- Form No. 710: Annual Income – Simplified, available as of January 2, 2021.
You must declare these taxes and their payment amount by the following dates:
|Last digit RUC (CIF)
||25 March 2021
||26 March 2021
||29 March 2021
||30 March 2021
||31 March 2021
||5 April 2021
||6 April 2021
||7 April 2021
||8 April 2021
||9 April 2021
|Good taxpayers and subjects not obliged
to register with the RUC (or CIF)
|12 April 2021
Changes to Depreciation: Are you affected?
Changes to special depreciation are now in effect for Annual Income Tax (Corporation Tax).
These new depreciation rules apply to:
- Constructions that started in 2020, and that have an advance of at least 80% by the end of 2022—relevant for all buildings whose construction began in 2020.
- Other depreciable assets acquired in 2020 or 2021.
For the 2021 period:
- Buildings and constructions will be depreciated at an annual rate of 20% until fully depreciated, provided the assets are used exclusively for business development.
- Land transport vehicles (except railways) using EURO IV, Tier II and EPA 2007 technology will be depreciated at an annual rate of 33.3%, up to their total depreciation.
- Land transportation vehicles for vehicular natural gas will be depreciated at a rate of 50%, up to their total depreciation.
- Buildings and constructions with a net value greater than zero as of December 31, 2020, may be depreciated at a rate of 20% per year during the years 2021 and 2022.
SUNAT are refunding ITAN: Can you claim?
Exceptional measures on the Temporary Tax on Net Assets (ITAN) are now in effect.
SUNAT (The National Superintendency of Customs and Tax Administration – Peru’s Tax Authority) will refund the ITAN for the year 2020 by means of a deposit in a bank account (within a period of no more than 30 business days after the application has been submitted).
Note, though that the deposit will only be processed if the annual declaration of the Income Tax for the year 2020 has been submitted and support the loss attributed.
Are you exempt from receiving VAT?
And let’s not forget those who may be exempted from receiving VAT!
The following individuals are not obliged to make payments on Income Tax and may request the suspension of the withholding of the tax:
- If income received in the month as self-employed and dependents does not exceed S /.3,208.
- If they have functions of directors of companies, trustees, agents, business managers, executors or similar and whose total income does not exceed S /.2,567.
- If they issue proof of payment for the services provided no greater than S / 1,500.
Amnesty for Infractions: Are you eligible?
We would hope that your local Auxadi Tax Team haven’t permitted any infractions, but we understand that you may have historical infractions if you only started using us in 2020.
If you are a new client, you may be interested to learn that SUNAT has stated it will not apply sanctions for infractions incurred before March 15, 2020, and specifically related to:
- not issuing and/or granting proof of payment,
- not displaying books, records or other documents,
- and not appearing before the Tax Administration or appearing outside the established term.
We hope 2021 will be a great year for your Peruvian business. For more information on any or all of these changes, please contact your Auxadi Tax Team.
In Auxadi we are experts in providing value added services in accounting, finance, tax compliance, payroll management and technology, being a strategic partner of your business. If you need to expand on what we have stated here, please do not hesitate to contact us.