List of high-risk tax schemes Peru: The tax authorities expands the list under GAAR

On 9 July 2024, the Peruvian tax authority published an updated version (third version) of the list of high-risk tax planning models, which now includes 24 arrangements that can be challenged under the Peruvian general anti-avoidance rule. Taxpayers involved in such transactions must expect these structures to be challenged. The Ecovis experts explain the details.

The Peruvian tax authority published the first version in February 2020 with five initial tax planning situations (high-risk systems) that would trigger the application of the Peruvian general anti-avoidance rule (GAAR). 13 additional high-risk structures were added in October 2022. The third version, which is now in force, contains 13 regulations from the previous versions and eleven new structures.

We offer expert assistance in navigating these high-risk tax regimes.

Octavio Salazar Mesias, Socio, ECOVIS Perú, Lima, Peru

The list of 24 high-risk structures

1. Deduction of payment of royalties in a brand/trademark use assignment scenario
2. Transfer of a Peruvian company using a trust or similar entity
3. Re-domiciliation of a company and use of Double Tax Treaties
4. Assignment of trademarks and capitalisation of credits
5. Management contracts and management fees
6. Assignment of a concession of an extractive industry (mining) with hidden payments for transfer of shares
7. Sale and further repurchase of an automobile under a cancellation of contract scenario
8. Direct transfer of Peruvian shares via capital contribution and subsequent capital reduction structure
9. Artificial use of preferential tax regimes
10. Loan via financial leasing structure
11. Intermediation in the sale of minerals through an entity without economic substance
12. Nonprofit entity making payments to an overseas supplier
13. Transfer of real estate to the shareholder and further lease of said real estate by the shareholder to the company
14. Transfer of real estate under a demerger scheme
15. Hidden loan and accrual of interest at fair market value
16. International lease through a conduit company with no economic substance
17. Disposal of shares with the appearance of being carried out by means of a stock exchange
18. Value-added tax (VAT) exemption on sale of books
19. Transfer of dividends through an entity resident in a jurisdiction of the European Union
20. Indirect transfer of intangible assets
21. Back-to-back credit between related parties using a foreign bank
22. Transfer of research and development (R&D) functions to foreign subsidiary for exploitation of intangible assets
23. Commission agent versus distributor
24. Import and distribution of goods considered as services

Taxpayers engaging in any of the above activities could be subject to challenge under Peru’s GAAR.

For further information please contact:

Octavio Salazar Mesias, Socio, ECOVIS Perú, Lima, Peru
Email: octavio.salazar@ecovis.com.pe