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Peru Introduces Net Income Thresholds for Reporting Ultimate Beneficial Owners

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Lima, Peru - Important Update from Peruvian Tax Authority

The Peruvian tax authority has published Resolution 41-2022/SUNAT, which sets out the net income thresholds for reporting ultimate beneficial owners in 2022 and 2023. This update is crucial for taxpayers to ensure compliance with the regulations.

Key Points of the Resolution

  • Entities must file a special form with the Peruvian tax authority to report individuals who are their ultimate beneficial owners.
  • The resolution applies to Peruvian entities that meet specific net income thresholds in the previous tax year.

Net Income Thresholds for 2022 and 2023

2022 Thresholds

  • Entities with more than 1,000 Tax Units (approximately USD 1.2 million) must file by May 2022.
  • Entities with 500-1,000 Tax Units must file by August 2022.

2023 Thresholds

  • Entities with more than 300 Tax Units (approximately USD 366,000) must file by May 2023.

Calculation of Net Income

The Peruvian tax authority defines net income as the highest of three alternative calculations:

  1. The sum of net sales or service income, financial income and income from the disposal of securities or fixed assets.
  2. The sum of net taxed sales, non-taxed sales and exports shipped minus discounts.
  3. The sum of amounts declared as net income in monthly advance income tax payments.

Ultimate Beneficial Owners

The Peruvian tax authority requires that individuals be deemed beneficial owners if they hold at least 10% of an entity’s capital. Entities that meet the threshold requirements must file the form with the Peruvian tax authority to report their ultimate beneficial owners.

Compliance and Next Steps

Taxpayers are advised to seek professional advice on compliance with the regulations. For additional information or guidance, please contact:

  • Ernst & Young Asesores S.C.R.L in Lima, Peru
  • Ernst & Young LLP in New York
  • Ernst & Young Abogados in Madrid
  • Ernst & Young LLP in London
  • Ernst & Young Tax Co. in Tokyo and Singapore