On December 19, 2023, Law No. 31962, ” Law that clarifies the interest for refunds of overpaid or undue taxes, for withholdings or perceptions not applied of the General Sales Tax and updating of fines” which introduced changes to articles 28, 38 and 181 of the Tax Code; pending publication of the regulations.
Only on December 14, the Ministry of Economy and Finance approved by Supreme Decree No. 259-2024-EF the regulatory provisions for the application of the modifications that were introduced to the aforementioned articles, which are applicable as of 01.01.2024.
Adjustment on debt components
With regard to article 28 of the Tax Code, referring to the Components of Debt, the provisions referring to default interest on fines were amended to refer only to the term “interest”.
Better conditions for tax refunds
With regard to article 38 of the Tax Code, for refunds of payments made unduly or in excess, the Moratorium Interest Rate (TIM) of article 33 of the Tax Code will be applied. This treatment will be applied even when these payments do not result from a document issued by SUNAT, so the modification especially benefits those who made payments by mistake and request a refund.
Lower rate for refunds of undue refunds
It has also been specified that when a taxpayer must return amounts that SUNAT unduly refunded, the Average Market Passive Rate (TIPMN) published by the SBS on the last working day of the previous year will be applied, which is significantly lower than the rate that applied before.
Significant change in default interest for fines
With regard to article 181 of the Tax Code referring to the Updating of Fines, the main modification establishes that unpaid fines will no longer be calculated with the Moratorium Interest Rate (TIM) but rather the legal interest rate fixed by the Central Reserve Bank of Peru (BCRP) and stipulated in article 1244 of the Civil Code will now be applied.
This change is applicable to all fines pending payment as of January 1, 2024. In addition, interest will only start to accrue from the date that SUNAT demands payment of the fine by means of a resolution or requirement, and not from the date of the infraction as was previously the case.
Since when have these changes been in force?
For Fines:
For offenses committed or detected prior to the publication of Law No. 31962 and that were pending payment as of 01/01/2024:
- The fine is updated with the TIM until 12/31/2024.
For offenses committed or detected after the publication of Law No. 31962:
- The fine is updated with the TIL.
For refunds:
If it was generated before the Law came into force, the following applies:
- Until 31/12/2023: Interest provided for in art. 38 of the CT before the amendment
- From 01/01/2024: TIM
To the amount to be refunded for refunds made by the Tax Administration that become undue, the following applies:
- Until 31/12/2023: Interest provided for in paragraph b) of art. 38 of the CT before the amendment – TIPMN published by the SBS on the last working day of the previous year, multiplied by a factor of 1.20
- From 01/01/2024: TIPMN published by the SBS on the last working day of the previous year
The new interest rates will be applied from January 1, 2024.
Recommendations for taxpayers
- If you have outstanding fines, it is advisable to wait for these new rates to come into effect in order to benefit from lower interest rates, if applicable.
- If you made undue or excess payments, you now have better conditions to request a refund.
- For any procedure related to these issues, it is important to keep all supporting documentation and submit requests within the deadlines established by tax regulations.
At VAG Global we understand that these changes in the interest rates applicable for tax purposes may raise questions about the impact on your tax obligations. Our team of specialists is ready to help you take advantage of these new provisions and optimize your tax planning. Contact us to assess how these changes benefit your company and design strategies that maximize savings on late payment interest.