Press Release (ePRNews.com) - LIMA, Peru - Feb 06, 2017 - Recently Peruvian Government has established a new MSEs (Micro and Small Enterprises) Tax Regime, which mainly provide lower Income Tax Rates and reduces the obligation to keep accounting books.
Individual and corporate taxpayers could use new MSEs Tax Regime provided its annual income would not exceed 1,700 Tax Units (6’885,000 PEN, approx. US$ 2’100,000).
– Those who are part of Economic Groups that its total annual income exceeds 1,700 Tax Units.
– Non-domiciled branches established in Perú.
– Individual and corporate taxpayers included in other tax regimes (like Rainforest Tax Regime, Agribusiness Tax Regime, among others).
MSEs Taxpayers will determine its annual Income Tax applying to its net income the following progressive rate schedule:
– From 0 to 15 Tax Units (60,750 PEN, approx. US$ 18,400): 10% Tax Rate.
– Above 15 Tax Units: 29.5% Tax Rate.
It is worth saying individual and corporate taxpayers not included in MSEs Tax Regime are ought to pay Income Tax by using 29.5% Tax Rate for their whole net income.
On the other hand, according Peruvian Tax Law domestic companies must comply in advance with monthly estimated tax payments. Those payments cannot be under the amount obtained by applying 1.5% to the month’s net income.
However, companies included in the MSEs Tax Regime that obtain annual income for less than 1’215,000 PEN (approx. US$ 368,182) are deemed to comply with the advance payments by applying 1% to the month’s net income.
In addition, legal requirements for expenditures deductions are not fully applicable for MSEs Taxpayers (e.g. Bad Debts provisions and Inventories Loses).
Companies subject to MSEs Tax Regime that obtain annual income for less than 1’215,000 PEN (approx. US$ 368,182) must only keep the following accounting books: Sales, Purchase and Simplified Daily book.
Should you have any questions do not hesitate to contact us.