Understanding Income Tax: Domiciled and Non-Domiciled Subjects in Peru

🏠 Sujetos domiciliados are individuals or organizations that are required to pay income tax on both domestic and foreign income in Peru.

✈️ Sujetos no domiciliados, on the other hand, are only subject to income tax on their domestic income in Peru.

🔍 The criteria for determining whether income is considered domestic or foreign can be complex, especially for individuals.

📝 The video discusses the general aspects of income tax for domiciled and non-domiciled individuals.

✅ Domiciled individuals include Peruvian nationals with a residence in the country, who are required to pay taxes on both domestic and foreign income.

❌ Non-domiciled individuals do not have a residence in Peru and are not subject to tax on foreign income.

🏠 Domiciled individuals are subject to income tax in the country if they have spent more than 183 days in a 12-month period.

🌍 Foreign individuals who are not Peruvian but have spent more than 183 days in a 12-month period in the country are also considered domiciled and subject to income tax.

💼 The regulations provide specific guidelines on how to calculate the number of days in order to determine domicile status.

Foreigners who stay in the country for more than 183 days become tax residents.

Tax resident status is determined based on a period of 12 months, not a calendar year.

Once a foreigner meets the 183-day condition, they become a tax resident from the following year.

💡 Individuals who have resided in the country for more than 183 days are considered domiciled and are subject to income tax on both Peruvian and foreign sourced income.

💡 Domiciled individuals have the advantage of accessing more deductions and discounts on their Peruvian sourced income.

💡 There is a rule for individuals who work abroad, where they are also considered domiciled and subject to income tax.

Persons working for the government retain their domicile status even if they are sent overseas for public projects.

Peruvians who leave the country for work lose their domicile status if their contract exceeds one year.

Domicile status is determined at the moment of departure from the country.

📌 The main rule for determining domicile for tax purposes is when a Peruvian person leaves the country with a work contract exceeding a certain duration.

📌 There is a similar rule stating that if a Peruvian person is outside the country for more than 183 days within a 12-month period and not working for the public sector, they lose their domicile status.

📌 These rules determine the tax residency status of individuals and whether they are subject to income tax in Peru.