Tax Newsletter - August 2025

The rule for allocating first category income has been amended.– Law No. 32430, published on August 21, 2025, in a Special Edition, amended subsection b) of Article 57° of the Income Tax Law, establishing that first category income (e.g., income from real estate rentals) will be allocated to the fiscal year in which it is actually received, and no longer to the fiscal year in which it accrues. This change will take effect on January 1, 2026.

Entry into force of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.– On August 23, 2025, it was published in El Peruano that the aforementioned Multilateral Convention will enter into force on October 1, 2025.

This document was signed by Peru on June 27, 2018, and ratified by Supreme Decree No. 013-2025-RE, published on May 27, 2025.

Members of the Review Committee for the application of Rule XVI of the Preliminary Title of the Tax Code are appointed.– By means of Superintendency Resolution No. 263-2025/SUNAT, published on August 19, 2025, the following composition was approved:

The use of information from prescribed periods for the issuance of payment orders for non-prescribed VAT is permissible (Cassation No. 0871-2025, Lima).– The Fifth Chamber of Constitutional and Transitional Social Law of the Supreme Court has ruled that the Tax Administration is empowered to use credit balances carried forward from prescribed periods in order to correct self-assessed VAT in a non-prescribed period. It is specified that such action does not violate the principle of tax legality or the nature of the statute of limitations.

In this case, SUNAT detected inconsistencies in the June 2020 VAT return after validating that the carryover of credit balances from previous years was incorrect. For the Supreme Court, the correction of these material errors was carried out within the framework of the power provided for in paragraph 3 of Article 78° of the Tax Code, since it did not involve the issuance of acts on prescribed fiscal years or the reopening of periods that had already expired.

Joint and several liability of consortium members in the event of assignment of rights (RTF No. 6000-5-2025). – The Tax Court upheld SUNAT's attribution of joint and several liability to former members of a consortium who had assigned their rights and shares.

In this case, the consortium members entered into an assignment agreement whereby they transferred 100% of the collection rights on the cash flows generated and outstanding payments to a third party. The assignors claimed that, having transferred those rights, they were exempt from joint and several liability; however, both SUNAT and the Tax Court concluded that the attribution was valid, since the assignment did not imply the assignors' formal resignation or disassociation from their status as members of the consortium.