Definition and Legal Framework
The tax treatment of digital services provided by non-domiciled individuals in the country is regulated by the Consolidated Amended Text of the Income Tax and its respective regulations. According thereto, digital services economically used or consumed in Peru are subject to income tax.
Characteristics of Digital Services
For a service to be considered digital and thus subject to income tax, it must comply with certain requirements defined in Article 4-A of the Income Tax Law regulations. These services must be automatic, provided through the Internet or equivalent networks, and depend on information technology.
Specific Cases
The regulations detail specific examples of digital services that qualify as such, even if they do not comply with all the above characteristics. Two relevant examples are:
- Network Technical Support Services: These services include installation recommendations, provision of technical documentation, and access to troubleshooting databases, among others, online.
- Consulting Services: Professional services offered through videoconferencing, e-mail, or other remote means of communication.
Income Tax Implications
The income generated by these services is considered a Peruvian source and is subject to income tax as long as they are used or consumed locally. It applies even if these services are not essentially automatic, such as online consulting and technical support.
Conclusion
Technical support and consulting services provided online and used in Peru are subject to income tax. Companies and professionals offering these services must understand these provisions to ensure proper tax compliance.
Source: Report No. 000039-2024-SUNAT/7T0000, SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria -National Superintendence of Customs and Tax Administration).
