Tax Alert – December 2024

An exceptional income tax regime is created to regularize undeclared income generated until December 31, 2022

By means of Law No. 32201, published on December 18, 2024, a new amnesty regime (the “Regime”) has been approved under the following terms:

1. The Regime applies to income subject to income tax that has not been declared or in respect of which no withholding or payment has been made to the tax authorities, generated up to December 31, 2022.

2. Unjustified increases in assets and income not regularized under Legislative Decree No. 1264 (generated until December 31, 2022) may also benefit from the Regime.

3. Individuals, undivided estates and conjugal partnerships that opted to be taxed as such and that have been qualified as “domiciled” in Peru for income tax purposes in any fiscal year prior to 2023 are eligible.

4. Individuals included in exclusion cases, such as public officials, those sentenced for customs offenses, tax evasion, money laundering, among others, are not eligible for the regime.

5. The taxable base is constituted by the net income received until December 31, 2022 that qualifies as undeclared income for the purposes of the Regime.

6. The Regime provides for the application of the following rates:

• General rate: 10%.
• Rate applicable in case of repatriation: 7%.

7. The regulation foresees that the Executive Branch will issue the corresponding regulations within 60 calendar days and that SUNAT will regulate the form and conditions for the application of the regime by means of a Superintendence Resolution.

8. The sworn statement may be filed until December 29, 2024. Once this period has expired, rectifying returns may be filed for material or formal errors until June 30, 2025, but only to the extent that this does not imply a reduction of the taxable base.

9. Unfortunately, the Regime suffers from a series of inaccuracies and gaps that give rise to concern, which include:

• Objections with respect to its validity, as long as the regulatory rules are not published;
• Questioning of the immediate vallidity of a regulation that creates an “exceptional income tax regime”. As it is an annual tax, any modification should enter into force only as from January 1 of the year following its publication;
• Lack of definitions of essential terms to apply the Regime (e.g. “net income”, exchange rate to be used to determine the taxable base), considering the absence of regulatory standards and that the deadline to apply the Regime will expire on December 29, 2024;
• Minimal guarantees on the confidentiality of the information, since there is no official channel for the application to the Regime, which leaves open the possibility that taxpayers may file returns using their SOL code or through SUNAT’s virtual desk, which does not ensure the confidentiality of such information;
• Lack of clarity as to whether the taxpayer’s money, assets or rights must be identified at the time of filing the affidavit of acceptance, in those cases in which the taxpayer is not an intermediary person, company, entity, trust;
• Practical limitations in its application:
  • Feasibility of transferring assets or rights that are in the name of an intermediary person, company or entity prior to the acceptance (before 29.12.2024); or,
  • Access to the 7% rate to the extent that the money must be repatriated before filing the declaration of acceptance to the Regime and after the issuance of the regulatory standard foreseen in the Law (there is no certainty that this will occur before December 29, 2024).

For further information, please contact Alex Morris (amorris@estudiorodrigo.com), José Chiarella (jchiarella@estudiorodrigo.com) and/or Braulio Delgado (bdelgado@estudiorodrigo.com).