The concept of the beneficial owner has become fundamental in Peru, particularly in taxation, as an effort to combat money laundering and tax evasion, which is key to guaranteeing tax transparency, as it identifies the people who really control and benefit from legal entities. In this article, we explain what it is, its regulation, and its relevance for the tax system and the country’s economy.
What Is the Beneficial Owner in Peru?
In Peru, the beneficial owner is the individual(s) who directly or indirectly control or benefit from a legal entity. It includes those who own more than 25% of the company’s shares or have effective control over key decisions, such as the election of directors or strategic decision-making.
Frequently, beneficial owners are not the direct owners, but rather those who, through complex structures such as trusts or intermediary companies, exercise factual control over the entity. The identification of these owners is necessary for combating illicit activities such as money laundering and the financing of terrorism, as well as ensuring compliance with tax obligations and improving corporate transparency.
How to Identify the Beneficial Owners?
This process is based on Legislative Decree 1372, which ensures that the individuals who really control or benefit from a company are duly identified.
The main aspects considered to determine who is a beneficial owner are detailed below:
- Direct ownership: An individual who owns more than 10% of the shares or equity stakes in a company is considered a beneficial owner.
- Effective control: A person is a beneficial owner if they can significantly influence company decisions, even if their shareholding is less than 10%.
- Senior Management Position: In the case of a company belonging to a more complex structure, such as a trust or a holding company, the authorities must identify the individuals who actually control the entity, even if they are not the direct shareholders.
Procedure for Registering Beneficial Owners in Peru
In Peru, companies have to register their beneficial owners with the SUNAT (Superintendencia Nacional de Aduanas y Administración Tributaria – National Superintendence of Customs and Tax Administration) through an affidavit. This process ensures that the tax authorities have access to clear and accurate information on the persons who actually control and benefit from the companies.
Steps for the Beneficial Owner’s affidavit:
- Identification of the beneficial owners: Companies must review their ownership and control structure to identify the individuals who meet the criteria established by the regulations (more than 10%)
- Registration with the SUNAT: The company must file an affidavit through the Beneficial Owner Registration (BOR) system, which enables digital reporting that includes details of the beneficial owners, such as their full names, percentage of ownership, and type of control over the entity, among others.
- Regular updating: The registered information must be updated annually or whenever there are changes in the ownership or control structure of the company. It is mandatory to keep this information up to date to avoid sanctions.
- Compliance with established deadlines: Companies must declare within the deadlines established by the SUNAT to avoid fines and other sanctions. These deadlines ensure transparency and compliance.
Importance of Identifying the Beneficial Owner
The correct identification and declaration of beneficial owners is essential for several key reasons:
- Prevention of money laundering: It identifies possible illegal activities and prevents the hiding of illicit funds.
- Tax evasion: It enables the SUNAT to verify that companies comply with their tax obligations and that they are not evading taxes.
- Corporate transparency: It fosters a more transparent and reliable business environment, which is crucial for attracting investment and strengthening the economy.
Conclusion
The identification and declaration of beneficial owners in Peru is key to tax transparency and the fight against money laundering and tax evasion. Companies must comply with this obligation, ensuring the correct identification of beneficial owners and reporting to the SUNAT, to strengthen a more transparent and reliable business environment.
VAG Global, as your strategic ally, ensures timely compliance with your obligations, avoids sanctions, and maintains the transparency required by current regulations. Let us advise you on successfully navigating the beneficial ownership requirements in Peru.