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Peru Cross-Border Tax Guide

Peru cross-border taxation for 2026. The guide covers: the 183-day rule — the individual present in Peru for 183 days or more in any 12-month period is the "tax resident" and is subject to the tax on the "worldwide income" (the "renta mundial"); the source-based taxation for the non-residents — the non-residents are taxed only on the "Peru-source income" (the "renta de fuente peruana") at the withholding rates; the DTA network — Peru has the double tax agreements with 10+ countries including the Chile, the Mexico, the Canada, the Switzerland, and the South Korea; the foreign tax credit — the resident taxpayer may credit the foreign taxes paid on the foreign-source income against the Peru income tax liability; the special regime for foreign workers in the mining sector (the "82.5% rule" — the special withholding treatment for the mining contractors).

183-Day Rule for Tax Residency

  • 183 days in any 12-month period: The individual is considered the "tax resident" (the "domiciliado") in Peru if the individual is present in Peru for 183 days or more in any continuous or discontinuous 12-month period (the "cualquier período de 12 meses"). The 183-day count includes the days of arrival and the days of departure. The 12-month period is NOT limited to the calendar year — it is the "rolling 12-month test".
  • Worldwide income for the residents (Renta Mundial): The Peru tax resident is subject to the "Impuesto a la Renta" (the "Income Tax") on the worldwide income (the "renta de fuente mundial" or the "renta mundial") — the income earned in Peru AND the income earned outside Peru. The worldwide income includes the employment income, the business income, the investment income (the dividends, the interest, the capital gains), and the rental income from the foreign sources.
  • Source-based taxation for the non-residents (No Domiciliados): The non-residents (the "no domiciliados") are taxed ONLY on the "Peru-source income" (the "renta de fuente peruana") at the flat withholding rates: (a) the dividends — 5% (the "tasa de retención"), (b) the interest — 4.99% to 30% (depending on the type of the interest), (c) the royalties — 30%, (d) the technical services — 15% to 30%, (e) the capital gains from the sale of the Peru shares — 5% to 30%.

Double Tax Agreement (DTA) Network

  • 10+ treaty partners: Peru has the comprehensive double tax agreements with: the Chile, the Mexico, the Canada, the Switzerland, the South Korea, the Portugal, the Brazil, the Ecuador, the Colombia, the Spain, and the Italy. The treaties are based on the "OECD Model Tax Convention" and provide the reduced withholding rates and the dispute resolution mechanisms.
  • Treaty benefits — reduced withholding: Under the DTAs, the withholding rates are typically reduced: (a) the dividends — 5% to 15% (from the standard 5% for the residents and 30% for the non-treaty countries), (b) the interest — 10% to 15% (from the standard 4.99% to 30%), (c) the royalties — 10% to 15% (from the standard 30%), (d) the technical services — 5% to 15%.
  • Permanent establishment (PE) threshold: The DTA defines the "permanent establishment" (the "establecimiento permanente") as the "fixed place of business" in Peru — the construction site (the "obra") lasting more than 6 months, the service engagement lasting more than 183 days, or the dependent agent concluding the contracts in Peru. The PE is subject to the corporate income tax at 29.5% on the "PE profits".

Foreign Tax Credit

  • Credit for foreign taxes paid: The Peru tax resident who earns the foreign-source income (the "renta de fuente extranjera") may claim the "foreign tax credit" (the "Crédito Fiscal contra el Impuesto a la Renta") for the income taxes paid abroad. The credit is limited to the Peru income tax attributable to the foreign-source income — the credit CANNOT exceed the Peru tax that would have been payable on the foreign income.
  • Calculation method: The foreign tax credit is calculated as: (the "foreign-source income" ÷ the "total worldwide income") × the "total Peru income tax" = the "maximum foreign tax credit". If the foreign tax paid exceeds the maximum credit, the excess may be carried forward for up to 4 years (the "arrastre de crédito").
  • Treaty vs domestic credit: The foreign tax credit is available under: (a) the "domestic law" (the "Ley del Impuesto a la Renta" — the "Income Tax Law") — the unilateral credit for the foreign taxes paid, (b) the "DTA provisions" — the treaty-based credit that may be more favourable in the calculation method and the carryforward rules.

Special Regime for Foreign Workers — 82.5% Rule

  • 82.5% rule for the mining and the energy sector: The foreign workers employed in the "mining sector" (the "sector minero") and the "energy sector" (the "sector energético") may benefit from the special tax treatment under the "82.5% rule" — approximately 82.5% of the salary paid to the foreign worker may be treated as the "expatriate premium" and may be subject to the reduced income tax treatment if the conditions are met.
  • Conditions for the 82.5% rule: The special regime applies if: (a) the foreign worker is the "non-resident" (the "no domiciliado") or the "new resident" in Peru, (b) the foreign worker is employed by the "mining company" or the "energy company" operating in Peru, (c) the foreign worker is hired for the "specific technical role" requiring the specialised expertise, (d) the employment contract is for the "fixed term" (the "plazo fijo") of less than 24 months.
  • Tax treatment: Under the 82.5% rule, only 17.5% of the salary is subject to the Peru income tax at the progressive rates (8% to 30%), while the remaining 82.5% is treated as the "expatriate allowance" and may be exempt or subject to the reduced tax. The exact treatment depends on the specific contract terms and the SUNAT interpretation.