Tax Credit Requirements in Peru: Articles 18 and 19
Article 18: Substantial Requirements for Tax Credits
The tax credit consists of the General Sales Tax recorded separately in the proof of payment to support the procurement of goods, services, and construction contracts, or paid on the importation of goods or by reason of the use in the country of services provided by non-domiciled individuals.
Requirements to be eligible for Tax Credit
Only purchases of goods, benefits or uses of services, or construction contracts and imports that meet the following requirements entitle the tax credit:
- They are allowed as an expense or cost of the company, according to the law of income tax, even if the taxpayer is not fond of the latter tax. In the case of entertainment expenses, the monthly tax credit is calculated according to the procedure for the purpose by the regulation.
- To be used in transactions for which the tax is payable.
Article 19: Formal Requirements for Tax Credits
To exercise the right to the tax credit referred to in the preceding article, the following formal requirements shall be met:
a) Tax Reporting and Documentation
The tax is reported separately in the payment receipt evidencing the purchase of the good, the service concerned, the construction contract, or being the case, the debit note, or a copy certified by the Agent Customs or the Customs notary documents issued by SUNAT, evidencing the payment of tax on imported goods.
Payment vouchers and documents referred to in this paragraph are those that, in accordance with relevant standards, support the tax credit.
b) Issuer Information on Payment Vouchers
Payment vouchers or documents must state the RUC name and number of the issuer so as not to allow confusion when comparing it with information obtained through public access media in the tax system and that, according to information obtained through these means, the issuer of the payment receipts or documents have been enabled to put on the date of issue.
c) Recording of Payment Vouchers in the Purchasing Register
Payment vouchers, debit notes, documents issued by SUNAT, which are referred to in subparagraph a), or the form stating the tax payment in the use of the services rendered by non-residents, must have been recorded at any time by the subject of tax in the Purchasing Register. The register must be legalized before use and satisfy the conditions prescribed in the Regulations.
The non-performance or partial, late, or defective fulfillment of the formal duties related to the purchase record will not entail the loss of entitlement to tax credits, which shall be exercised in the period corresponding to the acquisition, subject to configuration tax offenses characterized in the Tax Code which are applicable.
When proof of payment was omitted listing separately the amount of tax, being required to do so or, where appropriate, it has been entered for the wrong amount, the correction will proceed as provided by Regulation. The tax credit can only be applied after the month in which such relief is made.
In the case of receipts issued by non-domiciled individuals, the provisions of paragraphs a) and b) of this Article do not apply.
Payment of the Transaction
For proof of payment, debit notes, or documents that comply with statutory and regulatory requirements are not forfeited to the tax credit on the acquisition of goods, provision or use of services, construction, and import contracts, where payment of the total of the transaction, including payment of tax and collection, if any, had been made:
- i. Payment methods specified in the regulations and,
- ii. Subject to compliance with the requirements specified by the regulation.
The same as above does not exempt from compliance with other requirements of this Act to exercise the right to tax credits.
SUNAT, by resolution of the superintendent, may establish other verification mechanisms to validate the tax credit.
In the use in the country of services rendered by non-residents, the tax credit is based on the document certifying the payment of the tax.
For purposes of exercising the right to tax credits, where in fact corporate, consortia, joint ventures, or other forms of business cooperation contracts that do not carry independent accounting, the operator shall assign to each Contracting Party, in accordance with the participation in expenses stated in the contract, the tax that would have taxed the import, purchase of goods, services, and construction contracts, according to that established by the Regulation.
Such assignment shall be made by the characteristics and requirements documents will be established by SUNAT.