Alert
Regulatory Alert - October 2025
October 6, 2025
CHANGES TO THE PUBLIC WORKS FOR TAXES REGIME
On October 2, 2025, Law No. 32460 was published in the Official Gazette El Peruano. This law introduces several modifications to Law No. 29230, the Law that promotes regional and local public investment with private sector participation, which regulates the Public Works for Taxes regime (“OxI Regime”).
The most relevant provisions are the following:
- Article 2-B: The sources of financing (ordinary, directly collected, and earmarked resources) are consolidated, and a reference to Legislative Decree No. 1440 is incorporated for multi-year commitments. Control mechanisms are also strengthened: budget certification remains a prerequisite, prioritization must be formalized through a resolution issued by the head of the agency, and the General Directorate of Public Budget of the Ministry of Economy and Finance (MEF) maintains the verification of budget availability. These changes aim to provide greater predictability and transparency to the mechanism.
- Article 5: The rule of direct award is ratified when there is no plurality of interested parties or bidders.
- Article 7: It is established that Regional and Local Public Investment Certificates (CIPRL) may be used to pay up to 80% of advance payments, regularization payments, debt payments, or other tax obligations related to the following: third-category income tax, temporary tax on net assets, special regime income tax, income tax under the MYPE tax regime, special mining tax, general sales tax, and selective consumption tax.
- Article 8: The sources of CIPRL are specified and expanded, and now include: (i) mining royalties, (ii) additional mining royalties, (iii) royalties, (iv) customs duties, (v) Ordinary Resources for Investments/IOARR, (vi) Donations, and (vii) Transfers. Public universities may finance CIPRL from their institutional budgets without incurring debt or requiring additional resources from the Public Treasury.
- Article 11: A peremptory procedure is established for the issuance of CIPRLs (Certificates of Investment Promotion and Resource Licensing) when the public entity does not request their issuance through the corresponding platform. Private companies may request this from the General Directorate of Private Investment Promotion Policy (DGPPIP) of the Ministry of Economy and Finance (MEF), which has three business days to request confirmation from the public entity that the requirements have been met. If there is no response within five business days, the DGPPIP will notify the General Directorate of the Public Treasury, which will then issue the CIPRL within ten business days.
- Article 13: The maintenance of public investment projects (PIPs) is included in the Works for Taxes (Régimen OxI) not only by regional and local governments, but also by entities of the National Government and public universities.
- Article 16: The rules of the dispute resolution procedure are clarified, extending the deadline for direct negotiation in certain cases and specifying its scope. Furthermore, the obligation to inform PROINVERSIÓN of the initiation of such a request is included. On the other hand, the new features introduced by the regime include the following:
- Services through Tax Credits and Territorial Planning: Private companies can contribute through tax credits, not only in physical infrastructure, but also in the development and updating of territorial planning instruments, such as Urban Development Plans (PDU), Territorial Planning Plans (PAT), Metropolitan Development Plans (PDM), cadastral surveys, and microzonation studies.
- New Implementation Areas: Public entities of the National Government, regional and local governments, and public universities can manage and implement services in health, housing, sanitation, and education, especially in rural, border, or emergency situations, under the Works for Taxes (OxI) Regime.