Tax benefits applicable to the agricultural sector sparked debate once again in August 2026, following the introduction of legislative proposals aimed at modifying or eliminating certain benefits provided by Law No. 32434.
The issue is particularly relevant for agricultural export companies due to the impact that tax benefits can have on their costs and profitability.
Why is there controversy?
The discussion centers on whether tax incentives continue to fulfill the purpose for which they were created.
The OECD has also recommended reviewing certain benefits applicable to the agricultural sector, arguing that the sector’s expansion should be accompanied by a greater tax contribution.
What does this mean for companies?
Companies operating in the sector should assess the financial impact of any potential changes to tax rates or applicable conditions.
This involves running simulations that take into account:
- Income tax.
- Labor costs.
- Investments.
- Exports.
- Cash flow.
- Profits.
- Existing benefits.
In light of potential legislative changes, the recommendation is not to wait until the law is amended before analyzing its effects.
Source: Gestión (Peruvian Newspaper) — “Information About Peruvian Land Law and Tax Benefits”, August 27, 2026.
VAG GLOBAL — Legal, Tax, and Business Consulting.