Peru enacts Special Installment Payment regime for tax debts due by 31 December 2023

• The Executive has enacted Legislative Decree 1634, establishing a special installment payment regime for tax debts due by 31 December 2023.

On 30 August 2024, the Executive enacted Legislative Decree 1634, establishing a special installment payment regime for tax due by 31 December 2023.

Congress enacted Law 32089 on 4 July 2024, allowing the President, for a maximum term of 90 calendar days, to enact various tax measures. Among other things, the Law established that the President is empowered to legislate on the creation of a special installment payment regime for tax debts due by 31 December 2023. (For details, see EY Global Tax Alert, Peruvian Congress approves law granting President powers to enact various tax measures, dated 12 July 2024).

Legislative Decree 1634

This special installment payment regime is applicable to the following taxes that are due by 31 December 2023, including interest updated up to the date of the regime's approval:

• Income tax
• Value-added tax (VAT)
• Excise tax
• Special mining tax
• Other taxes

Taxpayers applying to this special installment payment regime are also entitled to a bonus discount exclusively on the interest and penalties generated from the tax debt subject to the regime. The bonus discount ranges from 100% to 30%, based on factors such as the amount of the debt and the timing of the installment payments.

To qualify for the special installment payment, the taxpayer must file a request according to the dispositions that are still pending (i.e., details on how the request should be filed will be clarified by regulations). Taxpayers may file for the regime until 20 December 2024.

For additional information concerning this Alert, please contact:

Ernst & Young Asesores Empresariales S.C.R.L, Lima

• Fernando Tori
• Roberto Cores
• Claudia Plasencia
• Edwin Sarmiento
• Ramón Bueno-Tizón

Ernst & Young LLP (United States), Latin American Business Center, New York

• Ana Mingramm

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.