A foreign company operating in Peru needs a local accounting firm to keep its books in Spanish and in soles, file monthly VAT (IGV) and income tax returns with SUNAT, run payroll and handle withholding on payments abroad. In 2026 the key numbers are a 29.5% corporate income tax, 5% tax on dividends, an 18% IGV and a tax unit (UIT) of S/ 5,500. Lynch Contadores & Abogados (Lynch & Associates S.A.C.), based in Lima, provides these services to foreign investors and is listed as "Recommended" for accounting outsourcing in Peru by Leaders League.
What a foreign company must comply with in Peru
Once your Peruvian entity or branch is registered and has a tax ID (RUC), compliance starts in the first month, even before the first sale.
- Accounting records: books kept under the Peruvian Chart of Accounts (PCGE) and IFRS as adopted in Peru, in Spanish and in soles unless SUNAT authorizes US dollar bookkeeping. Sales and purchase registers are kept electronically (PLE or SIRE, depending on the taxpayer).
- Monthly filings: IGV and income tax advance payments, according to SUNAT's calendar based on the last digit of the RUC.
- Annual filing: corporate income tax return and financial statements.
- Electronic invoicing: all invoices, credit notes and payment receipts are issued electronically.
- Informative returns: such as the ultimate beneficial owner return and, above certain thresholds, transfer pricing reports.
If you have not yet set up your entity, start with our step-by-step guide on how to incorporate a company in Peru, or compare it with registering a branch of a foreign company (in Spanish).
Peruvian taxes at a glance (2026)
| Tax | Rate or rule | Legal basis |
|---|---|---|
| Corporate income tax (general regime) | 29.5% of net taxable income; monthly advance payments (the higher of 1.5% of revenue or the prior-year coefficient) | Income Tax Law, arts. 55 and 85 |
| MYPE tax regime (revenue up to 1,700 UIT, S/ 9,350,000) | 10% on the first 15 UIT of net income (S/ 82,500) and 29.5% on the excess. Not available to branches of foreign companies or to entities linked to groups exceeding that revenue | Legislative Decree 1269 |
| Dividends paid to non-residents | 5% withholding on profits generated from 2017 | Income Tax Law, art. 56 |
| Royalties paid abroad | 30% withholding | Income Tax Law, art. 56 |
| Technical assistance paid abroad | 15% withholding (an audit report is required above 140 UIT) | Income Tax Law, art. 56 |
| Interest on qualifying loans from unrelated foreign lenders | 4.99%; otherwise 30% | Income Tax Law, art. 56 |
| IGV (VAT) | 18% in total: 15.5% IGV plus 2.5% municipal promotion tax (IPM) since 1 January 2026 | Law 32387 |
| Temporary net assets tax (ITAN) | 0.4% on net assets exceeding S/ 1,000,000; creditable against income tax | Law 28424 |
| Financial transactions tax (ITF) | 0.005% on bank debits and credits | Law 28194 |
Peru also applies a withholding and payment system for VAT called detracciones: customers deposit a percentage of certain invoices (12%, 10% or 4% for most services above S/ 700) into the supplier's account at Banco de la Nación. It surprises many foreign managers; see our guide to the SPOT withholding system (in Spanish).
Double tax treaties
Peru has comprehensive double tax treaties with Brazil, Canada, Chile, Japan, Mexico, Portugal, South Korea and Switzerland, and applies Andean Community Decision 578 with Bolivia, Colombia and Ecuador. Treaty benefits require a tax residence certificate from the foreign beneficiary, so plan for it before the first payment abroad.
Practical case 2026: repatriating profits and paying the parent
A Canadian group sets up a Peruvian S.A.C. in the general regime. In 2026 the subsidiary earns a pre-tax profit of S/ 1,000,000 and distributes all available profits to its parent.
| Item | Amount (S/) |
|---|---|
| Pre-tax profit | 1,000,000.00 |
| Corporate income tax (29.5%) | (295,000.00) |
| Profit available for distribution | 705,000.00 |
| Dividend withholding (5%) | (35,250.00) |
| Net dividend received by the parent | 669,750.00 |
| Combined Peruvian tax burden | 33.03% |
Now suppose the parent also charges the subsidiary S/ 200,000 for technical assistance used in Peru. The subsidiary must withhold 15% income tax (S/ 30,000) and pay 18% IGV on the "use of services" provided by a non-resident (S/ 36,000), which it can later use as input VAT credit. For the fee to be deductible, it must pass the benefit test for intragroup services and be priced at arm's length under Peru's transfer pricing rules. More on the VAT side in when IGV applies to payments to non-residents (in Spanish).
Payroll costs for a local employee
Peruvian payroll costs more than the monthly salary suggests. For an employee earning S/ 8,000 a month in the general labour regime (without family allowance):
| Annual concept | Amount (S/) |
|---|---|
| 12 monthly salaries (including 30 days of paid vacation) | 96,000.00 |
| Two statutory bonuses (July and December) | 16,000.00 |
| Extraordinary 9% bonus on those bonuses (Law 30334) | 1,440.00 |
| EsSalud health contribution, 9% of salaries (bonuses are exempt) | 8,640.00 |
| Severance deposit (CTS): one salary plus 1/6 of a bonus | 9,333.33 |
| Total annual cost | 131,413.33 |
The total is about 1.37 times the twelve monthly salaries, before mandatory group life insurance and any occupational risk insurance. The minimum monthly wage is S/ 1,230 from 1 October 2026 (Supreme Decree 015-2026-TR). Pension contributions (13% to the public system or about 10% plus fees to a private fund) are withheld from the employee, not paid on top. Our overview of doing business in Peru (in Spanish) covers the labour side in more detail.
What our accounting services include
- Outsourced accounting: bookkeeping under PCGE and IFRS, electronic registers, monthly closing and financial statements, with reporting packages in English and in your group's currency for consolidation.
- Tax compliance: monthly IGV and income tax filings, withholding on foreign payments, annual return, beneficial owner and other informative returns.
- Payroll: electronic payroll (PLAME), payslips, bonuses, CTS deposits and terminations.
- Tax advisory and audits: treaty analysis, intragroup agreements, transfer pricing support and representation before SUNAT.
- Corporate and legal: incorporation, by-law amendments, powers of attorney and the local legal representative's filings.
- ERP: implementation of Odoo for clients who want their invoicing, inventory and accounting in one system.
Our recognition is detailed in our Leaders League 2026 ranking article (in Spanish), and you can check the listing on the official Leaders League page.
Common mistakes foreign companies make
- Waiting for the first sale to start bookkeeping. Monthly returns are due from the month the RUC is active, even with no revenue.
- Paying the parent without withholding. The Peruvian company is liable for tax it should have withheld, plus interest at 0.9% a month in soles.
- Ignoring detracciones. Customers will deposit part of your invoice in a restricted account; plan your cash flow accordingly.
- Signing intragroup agreements without documentation. Without deliverables and arm's length support, SUNAT can deny the deduction.
- Treating contractors as consultants. If they work under your direction and schedule, they are employees under Peruvian law.
Frequently asked questions
Can I keep my Peruvian books in US dollars?
Only with SUNAT's prior authorization, under conditions that relate mainly to investment and financing in dollars. By default, books and returns are in soles.
Do I need a resident legal representative?
A branch must appoint a permanent legal representative domiciled in Peru. A subsidiary needs a general manager or attorney registered with SUNARP and SUNAT who can sign returns, bank documents and replies to SUNAT; in practice this is usually a person resident in Peru.
Can the subsidiary use the MYPE regime?
Only if its revenue is below 1,700 UIT and it is not linked by capital to companies whose combined revenue exceeds that limit. Most subsidiaries of foreign groups do not qualify. Branches of foreign companies are excluded.
How long are tax years open to audit?
Generally four years from 1 January following the filing deadline, and six years if no return was filed (Tax Code, art. 43).
Work with Lynch in Peru
We act as your local finance team: Spanish-language compliance, English-language reporting and one point of contact for accounting, tax, payroll and legal matters. If SUNAT opens an audit, we represent you through our SUNAT tax audit defense service. Write to contactenos@lga.pe or message us on WhatsApp at +51 963 049 500.
Need advice for your company in Peru?
Tell us about your requirements and we will review the appropriate scope of support.