The Oil, Mining , and Technology Sectors will be mainly affected by this measure whereby the Government established that foreign companies that operate through branches in Peru will be taxpayers of 18% of the Sales Tax.
Prior to this measure it was understood that the branch and the foreign legal entity were a single entity, so when the legal entity or branch rendered services or money was not recorded by Sales Tax.
A Peruvian Executive spokesman indicated that the impact of this measure will be immediate but will later be compensated with the tax credit obtained by the Sales tax.
The Peruvian Prime Minister, César Villanueva, also explained that the rules for the export of services are relaxed. The exporter must be a person domiciled in the country and the user or beneficiary must be someone domiciled outside the country.