What is a tax regime and why is it important?
A tax regime is the set of rules that determine how a natural or legal person must comply with their tax obligations depending on the economic activity they carry out. In Peru, these regimes are designed to facilitate the formalization of businesses and guarantee tax compliance in a manner appropriate to the economic capacity of each taxpayer.
Choosing the right tax regime is essential, as it has a direct impact on tax payments, the issuing of receipts, the administrative burden and possible penalties for non-compliance. With the right choice, businesses can optimize their tax burden and operate within the legal framework without difficulty. The four tax regimes currently in force in Peru are detailed below:
New Single Simplified Regime (NRUS)
The NRUS is a special tax regime created to facilitate the formalization of small businesses run by individuals. Its main advantage is the simplicity of complying with tax obligations, as it replaces the payment of VAT and income tax with a fixed monthly fee. It is aimed at retailers and small service providers who operate directly with the end consumer.
Requirements and exclusions
- Financial limits: Income or purchases of up to S/ 8,000 per month or S/ 96,000 per year.
- Excluded activities: Independent professionals, businesses with employees, travel agencies, cargo transportation, among others.
Taxes and obligations
- Fixed monthly payment:
- Category 1: S/ 20 (up to S/ 5,000 in income or purchases).
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- Category 2: S/ 50 (between S/ 5,001 and S/ 8,000 in income or purchases).
- Payment receipts that can be issued: Only sales receipts, referral slips and tickets are allowed.
- Accounting: It does not require keeping accounting books or filing tax returns.
Benefits of the scheme
It facilitates the formalization of small businesses with a fixed payment scheme and minimum administrative requirements, as well as access to the SIS Emprendedor (Entrepreneur System) for the holder and his/her family.
Special Income Tax Regime (RER)
The Special Income Tax Regime (RER) is aimed at individuals and legal entities that carry out commercial, industrial or service activities within certain financial and operational limits.
Requirements and exclusions
Small businesses with an annual income of up to S/ 525,000, fixed assets of less than S/ 126,000 and a maximum of 10 workers per shift are eligible. It does not apply to independent professionals or financial or insurance activities.
Taxes and obligations
- Income tax: 1.5% on monthly net income.
- IGV: 18% on taxable sales, with the right to a tax credit.
- Accounting: A Record of Purchases and a Record of Sales must be kept.
Benefits
It offers a simpler tax scheme than the General Regime, with lower rates and fewer accounting obligations, allowing the issuance of invoices and the use of the IGV tax credit.
MYPE Tax Regime (RMT) in Peru
The MYPE Tax Regime (RMT) is a regime created to facilitate the formalization and growth of micro and small enterprises (MYPE) in Peru. Its objective is to offer a more flexible tax burden compared to the General Regime, allowing small businesses to pay taxes based on their real income.
This regime is aimed at both natural persons with businesses and legal persons (companies) that do not exceed certain annual income limits. Businesses must not exceed 1,700 Tax Units (UIT). It is ideal for expanding businesses that need to issue receipts and take advantage of tax benefits without the tax burden of large taxpayers.
Taxes in the RMT
- Income Tax:
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- 10% for the first 15 UIT of annual net income.
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- 29.5% on the surplus over 15 UIT.
- IGV: 18% on taxed sales.
Accounting obligations
- Less than 300 UIT per year: Only Purchase Register, Sales Register and simplified format Daily Book.
- More than 300 UIT per year: Full accounting (Daily Book, Ledger and Financial Statements).
Benefits
It reduces the tax burden compared to the General Regime, allowing micro and small enterprises to grow with greater stability. It facilitates the issuance of all types of payment receipts and provides access to the VAT tax credit, optimizing business costs. In addition, it promotes formalization, allowing access to financing and other benefits within the financial system.
General Regime (RG)
The General Regime (RG) is designed for companies without restrictions on income or assets, including both individuals with businesses and legal entities. It is mandatory for companies with annual incomes over 1,700 UIT and allows them to operate in any economic sector.
Applicable taxes:
- Income tax: 29.5% on net income, with monthly payments on account of 1.5% of income.
- General Sales Tax (IGV): 18% on taxable transactions, with the possibility of using tax credits.
Taxpayers must keep complete accounts, which means recording transactions in accounting books and presenting financial statements.
Benefits
The main benefits of the RG include the possibility of deducting costs and expenses, offsetting tax losses and accessing IGV tax credits. Furthermore, it allows companies to access bank financing and participate in government tenders, which facilitates their growth and formalization.
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