Peru Issues Regulations on Ultimate Beneficial Ownership of Entities

On January 8, 2019, Peru’s Minister of Economics issued Supreme Decree 003-2019-EF, which outlines regulations for disclosing the ultimate beneficial ownership of entities in accordance with Legislative Decree 1372. The decree took effect on January 9.

Background

Legislative Decree 1372, enacted on August 2, 2018, requires entities to report and identify their ultimate beneficial owners to Peru’s Tax Authority. This obligation applies to a range of entities, including:

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

Who is considered a Beneficial Owner?

An individual is considered a beneficial owner if they hold at least 10% of an entity’s capital.

Entities Required to Report and Identify Ultimate Beneficial Owners

The following entities must report and identify their ultimate beneficial owners:

• Peruvian entities properly registered in Peru
• Non-Peruvian entities that have:
  • A branch or permanent establishment in Peru
  • Are managed by a Peruvian administrator
  • Have a Peruvian resident as one of its parties

Reporting Requirements

The regulations establish a specific form that must be completed by the ultimate beneficial owner and filed with the Peruvian Tax Administration. Entities must implement mechanisms to obtain and keep updated information on their ultimate beneficial owners.

Determining Ultimate Beneficial Ownership

If it is impossible to determine the ultimate beneficial ownership directly or indirectly, the individual holding the highest administrative position (such as a general manager or board member) will be deemed the ultimate beneficial owner.

Next Steps

The Peruvian Tax Authority will set a deadline for filing the required information. For further guidance and assistance on this topic, please contact:

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