Peruvian Congress Considers Bill to Temporarily Reduce Sales Tax and Adjust Income Tax Rates

• Peruvian Congress accepted Bill No. 11228/2024-CR to reduce the general sales tax rate
• IGV rate to be reduced to 15 percent in 2026, 16 percent in 2027, and 17 percent in 2028 from the current 18 percent
• Law applies to individuals or entities with income from business activities in all productive sectors subject to IGV
• Companies must increase their income tax rate by 1 percent to offset IGV reduction
• Temporary IGV rate effective from Jan 1, 2026, to Dec 31, 2030

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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