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SUNAT’s new tax rating system: A tool for tax compliance

27 November, 2024

SUNAT’s implementation of the “Tax Compliance Profile” marks a milestone in the modernization of Peruvian tax management. This innovative system, which is being tested until April 2025, establishes a rating method that promises to transform the relationship between the tax collection agency and third category taxpayers.

The ABC of rating

The system assigns grades from A to E, functioning as a tax traffic light that reflects the tax behavior of companies and businesses. An A grade represents excellence in tax compliance, while an E indicates serious deficiencies that require immediate attention. New taxpayers automatically start with a C grade, giving them a neutral starting point.

Criteria under the microscope

The evaluation is comprehensive and considers multiple factors: from the taxpayer’s history of compliance with tax returns and payments to the existence of tax delinquency proceedings. It also examines the presence of debts in coercive collection and business links with other low-rated taxpayers. This analysis is performed quarterly, considering the last 12 months of activity.

The implications of the rating are significant for business operations. A high rating (A or B) facilitates administrative processes and grants benefits in tax refunds. In contrast, a low rating (D or E) may result in operational restrictions, such as the need for special authorizations for basic procedures and extended deadlines for tax procedures.

Rights and guarantees

The system includes protection mechanisms for taxpayers. In the event of an unfavorable assessment, taxpayers have 10 business days to file a defense, and SUNAT must resolve the matter within a maximum of 30 business days. This provision guarantees the right to defense and the possibility of correcting assessments that are considered incorrect.

During the current trial phase, which includes assessments in July and October 2024, and January and April 2025, the ratings are informative and do not generate legal effects. This period allows taxpayers to adapt to the system and make adjustments to their tax management before the final implementation.

In order to maintain a favorable rating, it is crucial to timely comply with tax returns and payments, maintain updated accounting records, timely respond to SUNAT notifications and avoid the accumulation of tax debts. In addition, it is important to verify that the legal representatives do not have tax problems that could affect the company’s rating.

Perspectives and challenges

The implementation of this system represents an advance towards a more transparent and objective tax management, where voluntary compliance is encouraged through tangible benefits, while deficient tax behaviors face greater controls and restrictions.

In this new tax scenario, specialized advice is essential.

At VAG Global, our team of tax lawyers is prepared to provide the necessary knowledge in the decision making process of your business. Our accounting and tax advisory services will allow you to adopt the best practices to achieve and maintain a favorable rating, properly manage your tax obligations and take advantage of the benefits offered by the system.

 

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