Peru enacts law allowing the President to enact various tax measures
The President may issue Legislative Decrees to enact certain tax measures, including regulating how silent partnerships are taxed and extending the value-added tax (VAT) exemption.
The VAT exemption was set to expire on December 31, 2021. Legislative Decree 1519 extends the VAT exemption for activities and services listed in Appendix I and II of the VAT law until December 31, 2022. The VAT exemption applies to the following activities and services, among others:
- Interest from the collection of credits transferred by banking entities to securitization companies, trusts or investment funds
- Public transportation services within Peru, except for public rail passenger transportation and air transportation
- Cargo transportation services from Peru to foreign countries and from foreign countries to Peru
- Live shows
- The sale or import of certain goods (fish, crustaceans, mollusks, fresh or refrigerated potatoes, beans, artichokes, among others)
The Legislative Decree also extended until December 31, 2024:
- The refund for VAT and taxes paid for donations from foreign entities
- The provisions for imports made by diplomatic missions
- The VAT exemption for the issuance of electronic money by regulated electronic money companies
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