Tax regimes are categories through which taxpayers, whether individuals or legal entities, who carry out activities generating third category income must be incorporated to pay their taxes.
There are four tax regimes in Peru, which are as follows:
- The New Simplified Single Regime.
- Special Income Tax Regime.
- MSE Tax Regime.
- General Regime.
The incorporation to each of these will depend on the level of income or activity carried out by the taxpayer, among others.
This article briefly explains these regimes, their characteristics, benefits, and incorporation requirements.
1. New Simplified Single Regime
The New RUS (Nuevo Régimen Único Simplificado – New Simplified Single Regime) is a regime for individuals with a business, i.e., people who own a small business with final consumers (such as a warehouse, hardware store, among others) and those who develop a trade, may be included in this regime.
For this purpose, the monthly income must not exceed S/8,000.00 or S/96,000.00 per year. Likewise, the level of purchases must not exceed the aforementioned limit.
- Type of vouchers: Taxpayers subject to this regime may issue sales slips, remittance slips, and tickets.
- The maximum value of fixed assets: The maximum value of assets must amount to the sum of S/70,000.00, not including vehicles or land.
- Monthly fee: A monthly fee must be paid depending on the category you are in. If you are in category 1 (income or purchases in soles up to 5,000) the payment will be S/20. If you are in category 2 (income or purchases up to 8,000 soles) the payment will be S/50.
- Benefits: Exemption from keeping accounting books, monthly payments, no monthly or annual affidavits to be filed, and access to SIS Emprendedor will be available.
- Exclusions: The cargo transportation activities, national or international land transportation service of passengers and travel agencies, propaganda, and/or advertising shall be excluded from this regime.
2. Special Income Regime
The RER (Régimen Especial de Renta – Special Income Regime) is aimed at small companies, provided that they carry out activities of commercialization of goods and/or rendering of services whose annual net income or purchases do not exceed S/525,000.00 and do not have more than 10 employees.
- Type of vouchers: Taxpayers subject to this regime may issue all payment vouchers allowed.
- Maximum value of fixed assets: The maximum value of assets must amount to S/126,000.00, not including vehicles or real estate.
- Formal obligations: Taxpayers incorporated into the RER must file a monthly affidavit and have to keep a record of purchases and sales.
- Taxes to be paid: In the case of monthly income tax, this will correspond to 1.5% of monthly net income, and the general sales tax will be 18%.
- Benefits: Only two records must be kept, and no annual affidavits must be filed.
3. MSE Tax Regime
As its name indicates, this regime is aimed at Micro and Small Enterprises performing activities that generate third category income and whose income does not exceed 1700 UIT (Tax Unit).
- Type of vouchers: Taxpayers subject to this regime may issue all payment vouchers allowed.
- Statements: The taxpayer must pay as a monthly payment on account of Income Tax depending on his income. In case it is less than 300 UIT, the rate will correspond to 1% of the Net Income. Otherwise, it will be 1.5% or the coefficient, according to whichever is higher. Likewise, an annual income tax affidavit must be filed before the National Superintendence of Customs and Tax Administration with a rate of 10% if the annual income does not exceed 15 UIT; if higher, the rate will be 29.5%.
- Benefits: Any economic activity can be carried out under this regime, simple accounting with the keeping of the Register of Sales, Purchases, and Daily Book.
The taxpayer may also benefit from an extension of 3 months in the case of IGV.
4. General Regime
This regime is aimed at medium and large enterprises whose income exceeds 1700 UIT. All taxpayers not included in the other regimes are included herein.
- Type of vouchers: Taxpayers subject to this regime may issue all payment vouchers allowed.
- Statements: Monthly Income Tax payments on account must be made by applying a rate of 1.5% or the coefficient, whichever is higher. Likewise, an Annual Income Tax Affidavit must be filed at a rate of 29.5%.
- Benefits: Any activity can be included in this regime without any income limit. The company may be compensated if it has losses.
