The Peruvian economy displays, ending the fiscal year 2024, indicators affecting its performance during 2025. According to Carlos Vargas Alencastre, the TPC Group’s CEO, factors such as the global economic slowdown, volatility in commodity markets, and the national political context, particularly in an election year, will determine the country’s economic development in 2025.
Gross Domestic Product (GDP) Growth
In the third quarter of 2024, Peru’s GDP grew by 3.8% year-on-year, outperforming the previous period and evidencing a steady expansion. This increase is due to the growth of exports, which increased by 10.9% after a contraction in the last quarter. TPC Group projects that GDP will grow between 2.8% and 3.0% in 2025.
Rising Tax Collection
Tax collection also showed significant growth, reaching S/. 12,690 million, which increases 3.9%. This result reflects the good economic performance in September, driven by high copper prices. According to Vargas Alencastre, this sustainable recovery is due to the measures implemented by the SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria – National Superintendence of Customs and Tax Administration), which strengthened the IGV (Impuesto General a las Ventas – General Sales Tax/VAT) collection and income tax payments during 2024.
Outlook for 2025
When 2025 begins, the Peruvian economy will face challenges, such as possible variations in interest rates, inflation, and exchange rates, affected by climate phenomena, political instability, and access to raw materials.
Effects on Transfer Pricing
The economic environment will affect companies’ Transfer Pricing tax strategies. SUNAT issued warning letters regarding non-compliance with tax obligations at the end of 2024. Due to the amendments to the Income Tax Law effective in 2025, companies will have to be more rigorous in supporting their transactions. Vargas Alencastre emphasizes that taxpayers must be transparent and responsible in aligning with SUNAT’s parameters when determining the market value of transactions.
In summary, although the Peruvian economy displays recovery, global and local uncertainty poses challenges that will require adaptive strategies and prudent fiscal management to ensure growth.
Source: Altavoz
