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• CETICOS: geographical areas duly delimited with custom primary zone status and special treatment. Companies engaged in industrial, maquila, assembling or storage activities, established or set up in the CETICOS, are exempt from Income Tax, VAT, Excise Tax, Municipal Promotion Tax, as well as from any other tax, fee, contribution levied by the Central Administration.

• Legal Stability Agreements: Agreement signed with the Peruvian state that includes the guarantee of the stability of the income tax system applicable to the investors and to the company receiving the investment.

• VAT Anticipated Recovery: Anticipated refund of VAT paid for imports and/or domestic acquisitions of new capital goods, new intermediate goods, services and construction contracts, made in the pre-operation used for the execution of projects.

• Amazon Region: Special tax conditions regarding income tax and VAT have been established in order to favor private investment in this area.

• Drawback: This Customs Regime allows, as a result of export of goods, for total or partial refund of tariffs that may have been paid to import goods contained in exported goods or consumed during their production.

• Special Agriculture and Aquaculture regime.

• High-Andean zones: Special tax exemptions regarding income tax, VAT and tariff rates have been established in order to promote the development of productive activities in some areas of the high-Andean zones.

• Foreign investments are allowed, without restrictions, in most economic activities. No prior authorization is required for foreign investments; acquisition of national investor shares is fully allowed through stock exchange or other mechanism.

• No selection mechanisms or performance requirements are applied or demanded of foreign investors.

• With regard to the exchange regime, since the early nineties a free exchange market has been established in Peru. The State guarantees free availability, use and disposal of foreign currency by individuals and corporate bodies residents of Peru. Likewise, the State guarantees free convertibility of foreign currency at a unique exchange rate.

Agriculture

• Income tax shall be determined by applying 15% rate over the net income.
• Corporate bodies may depreciate 20% per year, the amount invested in hydraulic infrastructure and irrigation works.
• There is a special labor and social security regime that applies to the personnel hired in the agriculture sector.

Aquaculture

• The main tax benefit is that Individuals and corporate bodies engaged in aquaculture activities shall pay a 15% rate over the net income for purposes of Income Tax.

Minery

• Mining companies may enter into several types of tax stabilization agreements.
• Mining companies may access to VAT early recovery for companies performing productive activities and also for companies in the exploration stage.
• Tax losses may be carried forward, carrying forward losses to the four consecutive years following the year of the loss or carrying forward losses indefinitely, subject to an annual deductible limit equal to 50% of the taxpayer’s taxable income in each.