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Peru Tightens Regulations on Beneficial Ownership Reporting

Lima, Peru - March 3, 2022

The Peruvian tax authority has published Resolution 41-2022/SUNAT, which sets out new net income thresholds for reporting ultimate beneficial owners (UBOs) for tax years 2022 and 2023.

What are the Key Changes?

• The resolution affects Peruvian entities that are required to report UBOs under Legislative Decree 1372, enacted on August 2, 2018.
• An individual is considered a UBO if they hold at least 10% of an entity’s capital.

Threshold Amounts for Reporting UBOs

For tax year 2022:

• Entities with more than 1,000 Tax Units (approximately USD 1.2 million) in net income must file the form by May 2022.
• Entities with net income between 500 and 1,000 Tax Units (approximately USD 610,000 to USD 1.2 million) must file the form by August 2022.

For tax year 2023:

• Entities with more than 300 Tax Units (approximately USD 366,000) in net income in the previous tax year must file the form by May 2023.

What is Net Income?

Net income is calculated based on various factors, including:

• Sales or service income
• Financial income
• Income from the disposal of securities or fixed assets

Consequences of Non-Compliance

Failure to report UBOs may result in penalties and fines. Taxpayers are advised to review their net income calculations carefully to ensure compliance with the new regulations.

Need Guidance?

For further information and guidance, contact Ernst & Young Asesores S.C.R.L in Lima or one of the firm’s international offices listed below:

• Ernst & Young LLP (United States): Latin American Business Center, New York
• Ernst & Young Abogados: Latin America Business Center, Madrid
• Ernst & Young LLP (United Kingdom): Latin American Business Center, London
• Ernst & Young Tax Co.: Latin American Business Center, Japan & Asia Pacific