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Peru Investment Income Guide

Peru taxes investment income under the Impuesto a la Renta system. Dividends from Peruvian companies are subject to a final 5% withholding tax. Interest income is included in progressive IIT brackets (8–30%), with a reduced 5% rate for certain bonds and financial instruments. Capital gains distributions from ETFs and mutual funds are treated as ordinary income. All amounts in PEN.

Peru's treatment of investment income varies by type: dividends face a separate flat rate, while interest and some fund distributions are integrated into the progressive IIT system. For related guidance, see our Capital Gains Guide →, Personal Tax Guide →, and Corporate Tax Guide →.

Dividends — 5% Withholding Tax

  • Resident individuals: Dividends distributed by Peruvian companies to resident individual shareholders are subject to a 5% withholding tax (WHT). This is a final tax — the shareholder does not need to include the dividend in their annual IIT return or pay any additional tax on it.
  • Non-residents: Dividends paid to non-resident individuals or foreign entities are also subject to 5% withholding. Tax treaties (e.g., Andean Community, Chile, Canada, South Korea) may reduce this rate further, but 5% is generally the lowest rate available.
  • Stock dividends: Distributions of shares (stock dividends) are generally not taxable at the time of distribution, as there is no cash realisation. The cost basis of the original shares is adjusted to reflect the new shares.
  • Dividends from foreign companies: Foreign dividends received by Peruvian residents are included in their IIT return as worldwide income and taxed at progressive rates (8–30%). Foreign tax credits are available for withholding taxes paid abroad.

Interest Income — 5–30% Progressive

  • General rule: Interest income from bank deposits, savings accounts, certificates of deposit, and corporate loans is included in the taxpayer's IIT return as Renta de Segunda Categoría (capital income) and taxed at progressive rates of 8% to 30%.
  • Interest on corporate bonds: Interest from corporate bonds issued by Peruvian companies is included in progressive IIT rates.
  • Reduced 5% rate on certain instruments: Interest income from the following instruments qualifies for a reduced 5% withholding tax (final tax):
    • Government bonds (Bonos Soberanos)
    • Corporate bonds listed on the BVL with specific approval
    • Mortgage-backed securities (valores hipotecarios)
    • Infrastructure project bonds (Certificados de Inversión en Infraestructura)
  • Bank savings exemption: The first PEN 3,000 of interest income from bank savings accounts per year is exempt from IIT (applicable to natural persons only).
  • Non-residents: Interest paid to non-residents is generally subject to 4.99% withholding (reduced from 30% under domestic law if the non-resident is in a covered jurisdiction) or the applicable treaty rate.

ETFs and Mutual Funds

  • Capital gains on funds: Income from the sale of mutual fund and ETF participations is treated as capital income (Renta de Segunda Categoría) and subject to progressive IIT rates (8–30%).
  • However: If the fund invests primarily in BVL-listed securities, the exemption for securities capital gains may apply to the fund distributions if the fund qualifies under the securities exemption rules. In practice, most open-ended mutual funds' capital gains are taxable.
  • Income distributions: Dividends and interest received by the fund and passed through to investors retain their character — dividend distributions benefit from the 5% WHT treatment, while interest distributions are taxed at progressive rates.
  • Foreign funds: Gains from foreign ETFs and mutual funds are taxed as worldwide income at progressive rates. No specific exemption applies unless the fund is listed on a recognised foreign exchange.

Rental Income

  • First Category (Renta de Primera Categoría): Rental income from real estate is taxed separately from employment and investment income. The annual rental income (or 8% of the cadastral value if higher) is subject to a 6.25% effective rate (withheld monthly by the tenant for residential properties or paid directly).
  • This is a simplified regime — the taxpayer does not need to include rental income in the progressive IIT scale.
  • For commercial leases, the tenant withholds 5% of the monthly rent and remits it to SUNAT as an advance payment.