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Tax and Labor Alert – June 2023

ALERT – TAX

Agro-industrial activities included in Law 31110, of the Agrarian Labor and Incentive Regime for the agricultural and irrigation, agro-export and agro-industrial sector are determined

 

On June 22, 2022, Supreme Decree Nº 006-2023-MIDAGRI was published, which establishes the agro-industrial activities included in Law Nº 31110.

As recalled, this Law included in its scope of application natural or legal persons that develop crop or breeding activities, as well as those that carry out certain agro-industrial activities, to be approved by Supreme Decree.

After more than two years of the Law being in force, Supreme Decree Nº 006-2023-MIDAGRI has established the agro-industrial activities covered, which are defined according to ISIC Revision 4, and include: i) Class 1010 – Processing and preservation of meat; ii) Class 1030 – Processing and preservation of fruits, vegetables and greens; and iii) Class 0163 – Post-harvest activities. Certain exclusions are contemplated, such as activities related to poultry, as well as the production of meat products: sausages, black puddings, salami, chorizo, mortadella and other sausages, pâtés, cooked ham.

It should be noted that the aforementioned regulation has not included any transitory provision that addresses situations prior to the entry into force of this Supreme Decree.

Likewise, Supreme Decree Nº 006-2023-MIDAGRI states that the provisions contained in Chapters I, II and III of Title II of the Regulations of Law Nº 31110 and the provisions related to collective bargaining and minimum working conditions are applicable to the agro-industrial activities of oil palm cultivation (Class 1040 according to ISIC Revision 4).

For further information, please contact Tulio Tartarini (ttartarini@estudiorodrigo.com) and Ernesto Cardenas (ecardenas@estudiorodrigo.com).