FACULTY OF BUSINESS

ACCOUNTING SCHOOL

ACADEMIC REPORT

PERUVIAN AND FOREIGN ENTITIES IN DOMICILED AND NON-

DOMICILIED PEOPLE

COURSE:

TRIBUTACIÓN INTERNACIONAL.

AUTHOR:

DEL CASTILLO GIL EMILY FARA

TEACHER:

Bernardino Medina

2024
INDEX
I. INTRODUCTION

II. DEVELOPMENT

III. BIBLIOGRAPHIC REFERENCES

 I. INTRODUCTION

Economic activity in Peru continues to grow, which is why many Companies

registered in Peru begin to establish branches or subsidiaries in the country. abroad
to expand its activities to other markets. National legislation takes into account tax
regulations, as well as measures and methods to avoid double taxation in
international economic relations where Domiciled taxpayers pay income tax on their
income in the foreign.

In Peru, these people will pay the country's income tax. It should be noted that When
it comes to paying taxes, there are differences between natural persons domiciled
and non-domiciled natural persons, that is, natural persons or Non- domiciled legal
entities are taxed differently than natural persons or domiciled legal entities. In the
following lines this topic will be analyzed in more detail.The State Administration of
Customs and Taxation (SUNAT, 2023) mentions that income from foreign sources
is called income from foreign sources. foreigner.

Income from foreign sources is not classified and is considered for tax purposes
whenever they are received. This report introduces us to the treatment of taxpayers not
domiciled in Peru in our tax legislation the rent. Likewise, it comments on how this
situation is regulated, analyzing the concepts and regulation of jurisdictional bases, the
impact of conditions of residence, Peruvian and international income standards, to
address the double taxation
 II .DEVELOPMENT
INCOME FROM PERUVIAN SOURCE:

All taxable income obtained by individuals is subject to tax.

taxpayers who, in accordance with the provisions of this Law, are considered
domiciled in the country, without taking into account the nationality of the
natural persons, the place of constitution of the legal entities, nor the location of
the producing source. In the case of taxpayers not domiciled in the country, from
branches, agencies or others permanente establishments of sole proprietorships,
companies and entities of of any nature constituted abroad referred to in paragraph e)
of article 7, the Tax falls only on taxable income from Peruvian sources. (Art. 6).

a) Natural persons of Peruvian nationality who have domicile in the country, in

accordance with the rules of common law.

b) Foreign natural persons who have resided or remained in the country for more tan
one hundred eighty-three (183) calendar days during any period of twelve (12)
months.

c) People who perform representative functions or positions abroad officials and that
have been designated by the National Public Sector.

d) Legal entities incorporated in the country.

e) Branches, agencies or other permanent establishments in Peru of companies sole

proprietorships, companies and entities of any nature incorporated abroad, in which
case the domiciled status extends to the branch, agency or other permanent
establishment, regarding their Peruvian source income.

f) Inheritances, when the deceased, at the date of his death, had the status of
 domiciled in accordance with the provisions of this Law.

The multinational banks referred to in the Seventeenth Final Provision and

Complementary to the General Law of the Financial System and the Insurance System
and Organic of the Superintendency of Banking and Insurance - Law No. 26702,
regarding income generated by its operations in the domestic market.

• For Income Tax purposes, natural persons, with the exception of included in
subsection c) of this article, will lose their domiciled status when acquire
residency in another country and have left Peru, which must be proven in
accordance with the rules established by the regulations for this purpose. In the
event that not the status of resident in another country can be accredited,
natural persons, except those mentioned in section c) of this article, will
maintain their status as domiciled as long as more than one hundred and eighty-
three (183) remain absent from the country calendar days within any period of
twelve (12) months. The Peruvians who If they have lost their domiciled status,
they will regain it as soon as they return to the country, unless they do so
temporarily, remaining in the country one hundred and eighty-three
• (183) calendar days or less within any twelve (12) month period. The
provisions on domicile, contained in this chapter, do not modify the rules on
tax domicile contained in the Tax Code.

• Natural persons are considered domiciled or not in the country depending on

their condition at the beginning of each taxable year, judged in accordance with
the provisions of the preceding article. Changes that occur during the course of
a taxable year will only produce effects from the following fiscal year, except
in the case in which fulfilling With the requirements of the second paragraph of
the previous article, the domiciled condition is will lose when leaving the
country. (Art. 8).

• RATES
•
• A fee is a tax that is paid in order to be able to enjoy services or exercise
certain activities. It has been pointed out that one of the most important effects
of domiciled status of natural or legal persons, is the Nominal Interest Rate
 (TIN): These are those that capitalize many times in a year.

• Effective Interest Rate: This sets the nominal interest annually that depends on the
frequency of this being paid.

• Fixed Interest Rate: It is the rate that remains the same throughout the validity of
the loan.

• Real Interest Rate: This rate is very important because it helps determine what the
real interest that we are going to earn for the investments we make and inflation
reduces the purchase and the money loses value.

• Academic Fee: It is the amount that the student will pay to prepare their
official studies.

• Administrative Fee: These are those that will have to be paid for using a public
service.

• State Fees: These are the fees paid for services that are provided to us.
national character:

• Autonomous Rates: These are those paid for the services that are provided to us.
autonomous character.

• Local Rates: These are those that are applied by the town councils for which they
lend us a public service.

Withholdings

The TUO tells us that people or local entities that pay or credit to non-domiciled
beneficiaries, income of any kind, must withhold and pay to the treasury the
applicable taxes.

● Third category: The entire gross income, except for capital recovery, and
international income.

● Fourth category: Gross income less 20%

● Fifth category: The entire gross income.

Depending on the income level of the taxpayer, IR tax rates are progressive from
8% to 30%, which includes foreign income added to the net labor income. The
payment to taxpayers for results from foreign sources.

When calculating the Annual Income Tax, the Income of Foreign Source mentioned
in the Earned Income (Fourth and/or Fifth category).

The Second Category Net Income is determined solely by the inclusion of the
Foreign Source Income, which can be obtained through the alienation of shares and
other securities that meet one or more of the 2 conditions indicated in Article 51 of
the Income Tax Law establishes that the titles are registered on the Lima Stock
Exchange and are sold through a mechanism of centralized negotiation of Peru
(CAVALI)As long as they are registered in the abroad and sold through a
negotiation process abroad, in order to achieve an Integration Agreement with these
entities'. The MILA – Integrated Market Latin America has already established
agreements with Chile and Colombia.

It should be noted that it is considered income from a foreign source because the
entities Issuers of these securities do not have their headquarters in Peru.

Losses that arise in countries or territories with low or no taxes.

Examples of income from foreign sources:

• Income from financial advice provided in Switzerland.

• Transfer of a footwear brand registered in another country and exploitation

outside the country. Peru.

• Income from renting apartments abroad.

• Profits received from companies based abroad.

• Income from the sale of shares issued by a Chilean company, traded on the
Colombian Stock Exchange (BV).

• Income from the sale of shares issued by an Argentine company, traded on the
BVL.
• Income from the sale of shares issued by a Colombian company, traded on the
BV of Brazil.

• Income from the sale of shares issued by foreign companies and traded in BV from
other countries.

• The income from the sale of shares from a Colombian to a Peruvian, issued by
a Colombian company negotiated in the BV of Chile.

• Income for technical advice provided in another country.

Exception

Foreign income is added to second category net income only in exceptional cases, if
they come from the sale of shares and other securities that meet one of the two
conditions defined in article 51 of the Law of the Income tax.

- That they are registered in the Public Registry of the Peruvian Stock Market

(Lima Stock Exchange) and that they be sold through the Central Mechanism of

State Negotiation (CAVALI).

subscribed with these entities. They have currently subscribed agreements with the
countries of Chile and Colombia with which the MILA – Latin American
Integrated Market.

Foreign Source Income from the Disposal of Shares and Other Securities furniture
will be added and offset each other and if a net income results, this will be will add
to the Net Income of the Second Category produced by the disposal of the referred
goods.

If Foreign Source Income is generated from the sale of securities furniture, without
fulfilling any of the assumptions of article 51 of the Law, not must be added to the
Second Category Income, but must be added to the Work Income.

Important It should be noted that they are considered income from abroad,
since the issuing entities of these titles are not located in Peru. Losses are not
taken into account suffered in countries or regions with low or zero tax rates.
 CONCLUSIONS:

The tax paid abroad with respect to income from a foreign source that exceeds the
cost that could be credited against the Peruvian Income Tax, It should be
deductible for tax purposes. However, the different conclusions time the tax was
paid with respect to Peruvian source income; every time In such a scenario, the tax
paid will not be deductible for tax purposes. determine the tax paid abroad must
be attributed to the foreign source the expenses for its generation, therefore, the
effective rate of the tax paid in the foreigner will be calculated considering the
rate applied to the net income. The credit is granted with respect to taxes that
meet the characteristics of the Income taxation. Therefore, income taxes paid
abroad do not meet this requirement.

III.BIBLIOGRAPHIC REFERENCES
https://orientacion.sunat.gob.pe/no-domiciliados-empresas https://www.gob.pe/8004-
tributacion-de-personas-no-domiciliadas https://orientacion.sunat.gob.pe/no-
domiciliados-impuesto-a-la-renta-