Taxation in Peru

How the tax system works in Peru

Almost every number in Peru's tax system traces back to a single annual reference value: the Unidad Impositiva Tributaria (UIT, or tax assessment unit). The current UIT is PEN 5,500 (approximately USD 1,467), set annually by the Ministry of Economy and Finance. It serves as the base multiplier for income thresholds, standard deductions, corporate tax brackets, property tax tiers, and even the fines imposed for late filing. Understanding that one figure makes every other calculation in the system easier to follow.

The authority responsible for collecting and administering these taxes is the Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT), which administers income tax, VAT, customs duties, and social security declarations for both individuals and companies. The tax year runs from January 1 to December 31, matching the calendar year. Monthly payments made during the year are treated as installments, credited against the final amount determined in the annual return.

Peru's personal income tax is built around the concept of tax domicile rather than immigration status. Whether you hold a temporary or permanent residence visa does not, by itself, determine how you are taxed: what matters is how many days you have spent in Peru. Domiciled taxpayers pay tax on worldwide income at progressive rates. Non-domiciled taxpayers pay tax only on Peruvian-source income, typically through flat-rate withholding at source. Domicile status is assessed at the start of each fiscal year, so any change takes effect from January 1 of the following year.

In practice, compliance involves several parallel systems. Income is divided into categories numbered first through fifth, each with different filing obligations, withholding rules, and UIT-indexed thresholds. Tax revenues represent around 17% of GDP (OECD), modest by regional standards, but the interaction between categories means the system is more layered than the headline rates suggest.

Good to know:

Peru has double-taxation conventions in force with nine countries: Chile, Canada, Brazil, Mexico, South Korea, Switzerland, Portugal, Japan, and the United Kingdom, plus a regional arrangement under the Andean Community covering Bolivia, Colombia, and Ecuador. The UK-Peru convention entered into force on January 21, 2026, and will take effect in Peru for income tax purposes from January 1, 2027.

Tax residency in Peru

Crossing the 183-day mark is the triggering event. A foreign national becomes tax-domiciled in Peru once they have spent more than 183 calendar days in the country within any 12-month period. That count is cumulative over any consecutive 12-month period, not just the calendar year, which means someone who arrives mid-year should track their days carefully rather than assuming the clock resets in January.

The change in status does not take effect immediately. If you cross the 183-day threshold after June 30 of a given year, domiciled status only applies from January 1 of the following year. You continue to be treated as a non-domiciled taxpayer for the remainder of that calendar year, even after qualifying. This timing rule directly affects which income is taxed on a worldwide basis and when.

Once you become tax-domiciled, you lose that status if you subsequently spend more than 183 accumulated days outside Peru in a single year. Peru then treats you again as non-domiciled from the start of the following tax year.

Non-domiciled individuals pay tax only on Peruvian-source income through flat-rate withholding: 30% on employment and independent service income (the latter calculated on the net amount after a 20% expense deduction), and 5% on income from renting or selling Peruvian real estate and on income from securities settled through a Peruvian clearing institution.

When you need to prove Peruvian tax residency to claim treaty benefits abroad, SUNAT issues a Certificado de Residencia en el Perú (certificate of tax residence in Peru). To obtain one, you must be registered in the RUC (Peru's taxpayer registry) and submit a physical application at a SUNAT service center. SUNAT must issue its decision within 10 business days, or 25 business days if you do not attach a migratory movement certificate. The certificate has indefinite validity from the date of delivery.

Tax identification number in Peru

Before filing anything in Peru's tax system, you need a Registro Único de Contribuyentes (RUC), an 11-digit permanent tax identification number issued by SUNAT. Any foreign national carrying out economic activity in Peru, whether employed, freelancing, renting property, or running a business, must obtain one. The RUC also serves as the login basis for Clave SOL, SUNAT's online platform for all declarations, payments, and tax procedures.

Foreign nationals can register for a RUC using a Carné de Extranjería (foreign resident card), a Carné de Permiso Temporal de Permanencia (temporary stay permit card), a Ministry of Foreign Affairs identity card, or a passport accompanied by a visa that permits income-generating activities in Peru. Natural persons may register online through the SUNAT Virtual portal, using the App Personas SUNAT on a mobile phone for the identity verification step. Where online registration is not possible, you complete registration in person at any SUNAT taxpayer service center. A third party may act on your behalf in person, but only with a notarially legalized or SUNAT-authenticated power of attorney that expressly authorizes the RUC procedure.

Once issued, the RUC connects you to all of SUNAT's systems. You need it to file income-tax returns, issue electronic fee receipts (Recibos por Honorarios Electrónicos) as a freelancer, declare and pay VAT, receive official communications from SUNAT, and update your contact details. If you provide professional services to a Peruvian client while domiciled in Peru, every receipt you issue must identify you by your RUC.

Income tax in Peru

Peru taxes individuals' labor income through a progressive scale applied to net annual income after deductions, expressed in multiples of the UIT. Before the brackets apply, two standard deductions reduce the taxable base. First, a flat 7 UIT (PEN 38,500, approximately USD 10,267) is subtracted from the combined total of net fourth-category and gross fifth-category income, and no documentation is needed to claim it. If annual labor income exceeds that threshold, a further deduction of up to 3 UIT (PEN 16,500, approximately USD 4,400) is available for qualifying personal expenses paid during the year: restaurants, bars, and hotels; medical and dental services; professional and trade services; property rental payments; and EsSalud contributions paid for domestic workers. Each qualifying payment must be supported by an electronic receipt issued before December 31 of the relevant tax year.

For self-employed workers, there is an additional earlier layer: a flat 20% ordinary deduction is first applied to gross fourth-category receipts, reducing them before they are combined with any employment income for the 7 UIT deduction calculation. The progressive brackets then apply to the remaining taxable amount.

Resident taxpayers: income tax brackets (2026 tax year)

Tax rates are subject to change. Verify current rates with SUNAT.

Non-resident taxpayers: flat withholding rates

Tax rates are subject to change. Verify current rates with SUNAT.

Investment income and capital gains fall outside the progressive labor-income scale. Second-category income (capital gains, dividends, and investment returns) is taxed separately at an effective flat rate of 6.25% on net income and is never combined with labor income when applying the progressive brackets.

Tax for employees in Peru

Dependent employment income falls under fifth-category income (Rentas de Quinta Categoría), which covers all income earned under an employment relationship: salaries, wages, allowances, bonuses, Christmas bonuses, commissions, representation expenses, and any cash or in-kind compensation for personal services, including public-sector posts. Employer-provided benefits tied to the employment relationship, such as company-awarded travel packages, are also included in the taxable base.

Employers act as withholding agents and are responsible for calculating each employee's projected annual income tax, deducting the appropriate monthly installment from salaries, and remitting it to SUNAT through the electronic payroll reporting system known as Planilla Electrónica / PLAME. Withholding is only triggered when the employee's projected annual gross remuneration exceeds 7 UIT (PEN 38,500, approximately USD 10,267). Employees whose income stays below that threshold have no income-tax liability, and no withholding applies.

The practical consequence for most employees is that no annual personal income-tax return is required. The employer's monthly withholding satisfies the tax obligation in full. An annual return is only necessary if the employee wants to claim a refund of excess withholding or a refund linked to the additional 3 UIT deduction for qualifying personal expenses.

Employees can verify their employer's withholding records, declared contributions, and accumulated payments at any time by logging into SUNAT Operaciones en Línea with their Clave SOL credentials. This is the primary tool for confirming that the employer is correctly reporting and remitting on the employee's behalf.

Tax for self-employed workers in Peru

Independent professionals, freelancers, consultants, and tradespeople generating income without an employment relationship fall under fourth-category income (Rentas de Cuarta Categoría). The same category covers director fees, trustee fees, business-manager fees, and executor fees. Anyone generating this type of income in Peru must register for a RUC and obtain a Clave SOL to access SUNAT's filing systems.

Every service provided generates an obligation to issue an electronic fee receipt (Recibo por Honorarios Electrónico), identifying the client by their DNI or RUC number. When a receipt exceeds PEN 1,500 (approximately USD 400), and the paying client qualifies as a withholding agent, the client deducts 8% of the total receipt as income-tax withholding before paying the freelancer. Receipts of PEN 1,500 or less are not subject to this withholding.

When the client-side 8% withholding does not apply, because the client is not a withholding agent, the freelancer must file a monthly sworn declaration and pay an 8% advance payment using Formulario Virtual N° 616, but only when the monthly income exceeds PEN 4,010 (approximately USD 1,069). For director- and trustee-type fees, the monthly threshold is PEN 3,208 (approximately USD 855). Monthly declarations follow SUNAT's RUC-digit due-date calendar and are submitted through SUNAT's "Mis declaraciones y pagos" portal.

Independent workers whose annual income is projected to stay below PEN 48,125 (approximately USD 12,833), or below PEN 38,500 (approximately USD 10,267) for director-type fees, may apply from January 1 each year for a suspension of withholdings and advance payments using Formulario Virtual N° 1609 via SUNAT Virtual. If income later exceeds those limits during the year, withholdings must restart immediately.

The deduction structure for fourth-category taxpayers works in stages. First, a flat 20% ordinary deduction is applied to gross fourth-category receipts. The resulting net amount is then combined with any fifth-category employment income, and the 7 UIT standard deduction (PEN 38,500, approximately USD 10,267) is subtracted from that combined total. If the result still exceeds zero, the progressive brackets apply. An additional deduction of up to 3 UIT (PEN 16,500, approximately USD 4,400) for qualifying personal expenses can further reduce the taxable base, provided the relevant electronic receipts were issued to you before year-end.

For most independent professional services provided within Peru for Peruvian clients, the standard VAT rate (the Impuesto General a las Ventas, or IGV, at 18%) does not apply at the freelancer level: personal services under the fourth-category regime fall outside the IGV net. If the freelancer also conducts commercial or trading activities that are classified as third-category income, IGV registration and monthly declarations apply.

Non-domiciled freelancers providing services to Peruvian clients face a different mechanism. The Peruvian client applies a 30% withholding on the net income (gross receipt minus the 20% deduction) and declares and pays it to SUNAT. The non-domiciled provider is not the VAT taxpayer for services consumed in Peru; that obligation rests with the Peruvian client.

Social security contributions in Peru

Every person who starts dependent employment in Peru must affiliate with the pension system within 10 calendar days of starting work, regardless of nationality. Two options exist: the public Sistema Nacional de Pensiones (SNP, administered by the ONP) and the private Sistema Privado de Pensiones (SPP, administered by a private pension fund administrator known as an AFP).

Under the SNP, the employee contributes 13% of pensionable remuneration, which is deducted by the employer and remitted directly to the ONP. Under the SPP, contributions go into an individual account managed by the chosen AFP; the total rate varies by AFP and includes a fund contribution, an administration commission, and a disability and survivor insurance premium, making the overall deduction generally higher than the 13% SNP rate.

Health insurance is funded entirely by the employer at 9% of the employee's gross remuneration, paid to EsSalud. The contribution base cannot fall below the statutory minimum wage. EsSalud regular coverage includes preventive and curative health services, maternity care, and economic benefits such as temporary incapacity and maternity subsidies.

Self-employed workers are not automatically covered by EsSalud. Independent workers who want health coverage may join EsSalud +Salud Seguro Potestativo, a voluntary insurance scheme where premiums are based on age and the number of dependents rather than a flat percentage of income. There is no mandatory social-security contribution regime for fourth-category freelancers equivalent to the employee system.

Tax for companies in Peru

Companies registered in Peru pay corporate income tax at 29.5% on annual net taxable income under the standard Régimen General. The tax year is the calendar year, and filing deadlines are staggered by the last digit of the company's RUC, as set by SUNAT's annual schedule.

Small and micro-enterprises may qualify for the Régimen MYPE Tributario, which applies a more favorable progressive scale: 10% on annual net income up to 15 UIT (PEN 82,500, approximately USD 22,000) and 29.5% on any excess. A further simplified option, the Régimen Especial del Impuesto a la Renta (RER), replaces the annual corporate income tax with a flat monthly rate of 1.5% of monthly net third-category income, designed for small businesses that meet SUNAT's eligibility criteria.

Dividends and profit distributions paid to non-resident entities, non-resident individuals, or Peruvian resident individuals are subject to a 5% withholding tax. Dividends paid between two Peruvian resident companies are not subject to this withholding. Royalties paid to non-domiciled parties carry a 30% withholding.

Other taxes in Peru

Property tax

Property owners in Peru pay an annual municipal property tax (Impuesto Predial) to the district municipality where each property is located. The taxable base is the total assessed value of all urban and rural properties the taxpayer owns in the same district, calculated using official land values and construction unit values set by the Ministry of Housing. Taxable-person status is determined as of January 1 of each tax year. The progressive annual rates are as follows:

Tax rates are subject to change. Verify current rates with your local district municipality.

When you sell a property, the capital gain is classified as second-category income and taxed at an effective rate of 6.25% on the net gain. The main exemption applies to the sale of a principal private residence (casa habitación): the transaction is exempt from capital gains tax. Non-domiciled sellers of Peruvian real estate to domiciled buyers pay a 5% withholding on the sale rather than the 6.25% resident rate.

Value-added tax (VAT)

Peru's VAT (IGV) rate is 18% in total, made up of 15.5% IGV and a 2.5% municipal promotion tax, and applies to sales of goods and services, construction contracts, the first sale of real estate by builders, and imports. Under Decreto Legislativo N° 1623, in force since August 2024, Peru also applies an 18% IGV to digital services used by Peruvian individuals who do not conduct business activities. Non-resident digital platforms that provide audiovisual streaming, cloud storage, remote conference tools, and app-based intermediation services (such as housing rentals, taxi apps, and social media subscriptions) must collect IGV from Peruvian users and remit it to SUNAT.

Double taxation in Peru

Peru has bilateral double-taxation conventions in force with nine countries: Chile (since 2004), Canada (since 2004), Brazil (since 2010), Mexico (since 2015), South Korea (since 2015), Switzerland (since 2015), Portugal (since 2015), Japan (since 2022), and the United Kingdom (in force from January 21, 2026, with income-tax effect in Peru from January 1, 2027). An Andean Community arrangement, operative since 2005, governs income flows between Peru, Bolivia, Colombia, and Ecuador. The full list of conventions is maintained by Peru's Ministry of Economy and Finance.

For expats who are tax-domiciled in Peru and have already paid income tax abroad on the same income, the primary relief mechanism is a direct foreign tax credit (crédito directo): tax paid to a foreign authority is deducted from the Peruvian liability on the same income. For Peruvian-resident companies receiving dividends from non-domiciled first- or second-tier subsidiaries, an indirect credit is available for the foreign tax proportionally borne on those profits, provided the required information is registered in the SUNAT register before the annual return deadline.

A tax treaty does not automatically override domestic withholding rates. Relief must be actively claimed: either by the taxpayer obtaining a SUNAT-issued certificate of residence, or by the withholding agent obtaining and verifying the counterpart's foreign residence certificate. Without those procedural steps, the full domestic withholding rate applies by default.

Treaty disputes between Peru and a treaty-country tax authority can be escalated through the Procedimiento de Acuerdo Mutuo (PAM, or mutual agreement procedure). SUNAT's international tax portal references the OECD Manual on Effective Mutual Agreement Procedures as the applicable procedural guide for these cases.

Filing tax returns in Peru

Not everyone files an annual personal income-tax return. Employees with only fifth-category income whose employer has withheld correctly throughout the year have no filing obligation, unless they want to claim a refund of excess withholding or of the 3 UIT personal expense deduction. Those who must file include: independent workers whose monthly income exceeds PEN 4,010 (approximately USD 1,069), or PEN 3,208 (approximately USD 855) for director-type fees; property landlords receiving first-category rental income; and expats who are tax-domiciled in Peru and have foreign-source income.

The annual personal income tax return is filed online using Formulario Virtual N° 709 (Renta Anual, Persona Natural), available on SUNAT Virtual starting March 31 of the year following the tax year. After logging in with Clave SOL, the taxpayer reviews pre-filled data loaded by SUNAT from employer and third-party reports (income, withholdings, deductions, and credits), amends any figures that differ from actual records, and submits. Eligible taxpayers may alternatively file through the Personas SUNAT App.

Filing deadlines for the annual return are staggered by the last digit of the taxpayer's RUC and typically run through April of the following year. Taxpayers should check their personalized due date on SUNAT Virtual each year, as SUNAT publishes its annual schedule.

Monthly obligations run in parallel with the annual return for independent workers and landlords. Fourth-category workers file Formulario Virtual N° 616 monthly when income exceeds the applicable thresholds. Rental-income taxpayers declare and pay monthly using the Formulario Arrendamiento 1683, also following SUNAT's monthly RUC-digit due-date calendar.

Missing a required annual return deadline triggers a fine of 50% of 1 UIT (PEN 2,750, approximately USD 733) for natural persons. Unpaid tax and fines both accrue interest at 0.03% per day. Voluntary regularization before receiving a SUNAT notification can reduce the fine by up to 100%; once SUNAT has notified you, the full fine plus accrued interest applies. Missing a monthly declaration deadline generates the same daily interest from the day after the due date.

Tax advice and help in Peru

SUNAT provides free resources for individual taxpayers through the SUNAT Personas portal, with guides for employees, freelancers, landlords, and those with foreign income. SUNAT Operaciones en Línea (SOL) handles all declarations and payments. For direct assistance, SUNAT's Central de Consultas helpline is reachable at *4000 (mobile) or 0-801-12-100 (landline), open Monday through Friday from 08:30 to 18:00, and Saturday from 09:00 to 13:00. The international taxation microsite  provides guidance in both Spanish and English for non-domiciled taxpayers and treaty questions.

Professional advice is strongly recommended in four situations: you are becoming tax-domiciled in Peru while retaining foreign-source income (salary, pension, investment income, or remote-work earnings), because SUNAT requires domiciled taxpayers to include all foreign income in their annual return; you work as an independent contractor and may cross the annual suspension thresholds; you run a Peruvian-registered company that pays non-domiciled shareholders; or you have a corporate structure with potential beneficial-ownership reporting obligations, as SUNAT is currently expanding domestic-entity requirements and preparing deadlines for foreign entities.

To find a qualified Peruvian tax professional, consult the Junta de Decanos de Colegios de Contadores Públicos del Perú (JDCCPP), the national umbrella body for Peru's regional CPA colleges. Searching the regional Colegios de Contadores Públicos is the standard way to verify a practitioner's registration.

Three practical mistakes are worth flagging before you file. First, many expats assume that income earned from a foreign employer, remote clients, or overseas investments is exempt from Peru's tax system; once you are tax-domiciled in Peru, all foreign-source income must be included in your annual return. Second, Peru runs multiple monthly filing calendars (for rental income, fourth-category advance payments, and non-domiciled withholding), each staggered by RUC digit, and missing any one of them triggers moratory interest at 0.03% per day from the day after the due date. Third, treaty protection is never automatic: a double-taxation convention does not stop a Peruvian payer from applying domestic withholding rates unless you actively claim relief by following the required procedural steps.

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