PERU ENACTS BENEFICIAL OWNERSHIP RULES TO COMBAT TAX EVASION AND MONEY LAUNDERING
Lima, Peru - November 27, 2019 - The Peruvian tax authority, SUNAT, has implemented new regulations requiring legal entities and arrangements to disclose beneficial ownership information. The move is aimed at preventing tax evasion, money laundering, and the financing of terrorism.
NEW REGULATIONS FOR BENEFICIAL OWNERSHIP
According to Supreme Decree 003-2019-EF issued on January 8, 2019, companies must identify their ultimate beneficial owners (UBO) and submit this information to SUNAT. This includes individuals who hold a direct or indirect stake of at least 10% in the company, as well as those with effective control.
Who is Considered the UBO?
To determine the UBO, several criteria are applied:
- Natural persons holding at least 10% of the capital
- Individuals occupying the highest administrative position (CEO, board member, etc.)
- Persons with effective control
Effective control refers to situations where ownership or control is exercised through a chain of ownership or other means.
Who Must Submit the UBO Tax Return?
Legal entities registered in Peru and arrangements established within the country must identify their ultimate beneficial owners. This includes:
- Trusts
- Investment funds
- Consortiums
- Branches or permanent establishments of foreign companies
- Foreign funds or trusts managed by a Peruvian administrator
Consequences for Non-Compliance
Failure to submit the UBO tax return or providing incomplete information may result in a tax offense with penalties up to 50 UIT (approximately PEN 210,000).
Ecovis experts advise companies to begin researching and identifying ultimate beneficial owners, as this process can be complex and time-consuming.
IMPLEMENTING BENEFICIAL OWNERSHIP RULES IN PRACTICE
To comply with these regulations, legal entities are recommended to implement an internal UBO policy defining essential mechanisms for obtaining, saving, and updating UBO information. If entities cannot identify the UBO, they must provide information about their situation on their website or via official Peruvian media outlets.
For further guidance and assistance in navigating Peru’s beneficial ownership rules, contact Cindy Steffani Salvador Márquez at ECOVIS Peru.