Peru Issues Regulations on Beneficial Ownership Determination

On January 8, 2019, Peru’s Minister of Economics issued Supreme Decree 003-2019-EF, outlining regulations for disclosing the ultimate beneficial ownership of entities in the country. The decree became effective on January 9, 2019.

Background

The regulations are based on Legislative Decree 1372, enacted on August 2, 2018, which requires entities to report and identify their ultimate beneficial owners to the Peruvian Tax Authority. This obligation applies to various types of entities, including:

• Funds
• Investment funds
• Trusts
• Foreign trusts with a Peruvian administrator
• Joint ventures
• Others

Definition of Beneficial Owner

According to the regulations, an individual is deemed a beneficial owner if they hold at least 10% of an entity’s capital. Entities subject to the regulations include:

• Peruvian entities duly incorporated in Peru
• Non-Peruvian entities that meet certain requirements, such as:
  • Having a branch or permanent establishment in Peru
  • Being managed by a Peruvian administrator
  • Having a Peruvian resident as one of its parties

Implementation Requirements

The decree also establishes a special form that must be completed by the ultimate beneficial owner and filed with the Peruvian Tax Administration. Entities are required to implement specific mechanisms to obtain and keep updated information on their ultimate beneficial owners. If it is not possible to determine the ultimate beneficial ownership, directly or indirectly, the individual holding the highest administrative position will be deemed the ultimate beneficial owner.

Next Steps

The Peruvian Tax Authority will set a deadline for filing the information. For additional guidance, please contact:

• Ernst & Young Asesores S.C.R.L., Lima
• One of our international offices

We are here to help you navigate these regulations and ensure compliance with the new requirements.