|
On 30 December 2022, Peru enacted Law 31659, increasing the deduction rates for Scientific Research, Technological Development, and Technological Innovation expenses (R&D expenses). The new tax incentives are effective as of 1 January 2023 until 31 December 2025.
Background
Law 30309 introduced a temporary tax incentive allowing taxpayers to deduct R&D expenses, according to the following rules:
Taxpayers with net income not exceeding 2,300 Tax Units (approx. US$2,996,000) were entitled to deduct: (i) 215%: if the R&D project was carried out directly by the taxpayer or through a Peruvian R&D center; or (ii) 175%: if the R&D project was carried out through non-Peruvian R&D centers.
Taxpayers with net income exceeding 2,300 Tax Units were entitled to deduct: (i) 175%: if the R&D project was carried out directly by the taxpayer or through Peruvian R&D centers; or (ii) 150%: if the R&D project was carried out through non-Peruvian R&D centers.
The tax incentives expired on 31 December 2022.
Law 31659
Law 31659 increased the deduction rates for R&D expenses and has extended such tax incentives until 31 December 2025, as follows:
Taxpayers whose net income does not exceed 2,300 Tax Units are entitled to deduct: (i) 240%: if the R&D project is carried out directly by the taxpayer or through a Peruvian R&D center; or (ii) 190%: if the R&D project is carried out through non-Peruvian R&D centers.
Taxpayers whose net income exceeds 2,300 Tax Units are entitled to deduct: (i) 190%: if the R&D project is executed by the taxpayer itself or by a Peruvian R&D center; or (ii) 160%: if the R&D project is executed by a non-Peruvian R&D center.
Law 31659 is effective as of 1 January 2023 until 31 December 2025.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Asesores Empresariales S.C.R.L, Lima
Roberto Cores
Ramón Bueno-Tizón
Ingrid Zevallos
Claudia Miranda
Krizia Hurtado
Ernst & Young LLP (United States), Latin American Business Center, New York
Lucas Moreno
Ana Mingramm
Pablo Wejcman
Enrique Perez Grovas
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Lourdes Libreros
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
Raul Moreno, Tokyo
- Luis Coronado, Singapore
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
