Peru

Business Environment

Business practices

Closed hours and days: Banks are open from Monday to Saturday, from 9.00 to 13.00 and from 15.00 to 18.00.
Shops are open from Monday until Saturday from 9:00 to 20:00
Public administrations from Monday until Friday from 9:00 to 17:00 (in winter) and of 8:00 to 15:00 (in summer).

Public holidays

Compensation day

Periods when companies usually close

Standards

National standards organizations
Integration in the international standards network: The National Institute for the Defence of Competition and Intellectual property (INDECOPI), is responsible for enforcing technical standards and specifications of manufactured goods. The organisation in charge of the certification of products is the Governmental Institution CERPER.
Classification of standards
Online consultation of standards
Certification organizations

Legal framework

Independence of justice: Peru’s judicial system is not completely independent thought government is trying hard to change it. General perception of the judicial system is that it is an inefficient, overloaded and riddled with bureaucratic and political influence.
Equal treatment of nationals and foreigners: Foreign nationals cannot expect an impartial trial from country’s judicial system.
The language of justice: There are two judicial languages used in the country: Spanish and Quechua.
Having recourse to an interpreter: Having an interpreter is possible.
Sources of the law and legal similarities: Peru is a Republic state based on parliamentary democracy. Peru (official name: Republic of Peru) is in a state of ongoing democratisation and is deeply divided politically and economically.
President is both the chief of the state and head of the government. President is the commander-in-chief of the armed forces and holds executive powers which include implementation of the law and running the day-to-day affairs of the country. President is quite powerful. President is elected by popular vote for a five-year term. The President appoints the Council of Ministers (cabinet) and Prime Minister to serve for five-year terms. All Presidential decree laws or draft bills sent to parliament must be approved by the Council of Ministers.
The legislature is unicameral Peru.The parliament called Congress consists of 120 seats, with its members elected by popular vote to serve five-year terms. President has the power to veto acts of the legislature, and in turn a supermajority (generally two-thirds majority) of legislators may act to override the veto. The president has the power to block legislation with which the executive branch does not agree. The people of Peru enjoy considerable political rights.
Peru’s judicial system is not completely independent thought government is trying hard to change it. General perception of the judicial system is that it is an inefficient, overloaded and riddled with bureaucratic and political influence. The main source of the law in Peru is the constitution of 1993. The country’s legal system is based on civil law system. Peru accepts compulsory ICJ jurisdiction but with reservations. There are two judicial languages used in the country: Spanish and Quechua; having an interpreter is possible.
Peru is not ruled by law. Crime in the country is going out of control and public safety is threatened by gang warfare. Foreign nationals cannot expect an impartial trial from country’s judicial system. A high degree of corruption level plagues the country, especially the corporate and public sectors are highly effected.
Consulting national laws online

Intellectual Property

National organizations: The Peruvian organisation responsible for the protection of intellectual property is the Instituto Nacional de Defensa de la Competencia y de la Proteccion de la Propriedad Intelectual (INDECOPI).
Peru signed the agreement of Paris concerning the protection of industrial property and the agreement which establishes the World Intellectual property Organization (WIPO).

National regulation and international agreements

Type of property	Law	Validity	International agreements signed
Patent	Industrial Property Law (Legislative Decree No. 823) April 23, 1996	20 years
Trademark			Trademark law treaty Nice agreement concerning the International classification of goods and Services for the Purposes of the registration of Marks Protocol relating to the Madrid Agreement concerning the International Registration of Marks
Design	Industrial Property Law (Legislative Decree No. 823) April 23, 1996	10 years
Copyright
Industrial Models	Industrial Property Law (Legislative Decree No. 823) April 23, 1996	10 years

Tax rates

Consumption taxes

Tax rate: 19%
Reduced tax rate: 2%
Exemptions include some basic foodstuffs, urban passenger transport, the international transport of cargo, life assurance polices, some financial products, books and the construction and maintenance of ships.

Corporate taxes

Tax rate

Capital gains taxation

Capital gains are taxed in Peru at the rate of 30%.

Other corporate taxes

Individual taxes

Tax rate

Allowable deductions and tax credit

The taxpayers benefit from various deductions according to the nature of their income (salary, pension, etc.). For example, the employees of a company benefit from a tax relief of 20%.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the convention signed on the website of the Ministry of Finance.
Whithholding taxes
Bilateral agreement

Sources of fiscal information

Tax Authorities: Fiscal administration of Peru (in Spanish)
Other domestic resources

Accounting rules

Tax year: The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting regulation bodies
Accounting reports: As the structure of accounts and big masses are inspired by various models, it is difficult to establish a precise plan of their presentation.
Publication: Accounts must be established in national currency in agreement with the new accounting plan introduced in 1987. Accounting must be kept in accordance with current standards but companies have no obligation in terms of structure for annual reports : nevertheless, they have to publish a balance sheet, a profit and loss account and annexes which should be guaranteed by an independent auditor.
Professional accountancy bodies
Certification and auditing: The certification of accounts became compulsory in Peru in 1974, with the creation of the "Commission Nacional de Empresas y Valores". The national accounting system was implemented in 1987 to harmonize and standardize operations and financial results.
Only the accountants who hold the public Certified Accountant's status are authorized to control and guarantee the accounts of companies.
Accounting news