Peruvian Income Tax: Dividends and Source Income
An overview of Peruvian income tax related to dividends with a focus on determining Peruvian source income and assessing the market value of shares involved.
00:00:00 An overview of Peruvian income tax related to dividends and their distribution. Includes information on taxation for different entities and individuals.
Dividends from Peruvian companies generate Peruvian source income when paid to a Peruvian corporate entity or a domestically established investment fund.
Peruvian companies distributing dividends to other Peruvian companies are not considered taxable income, but the dividends may be subject to taxation when received by non-domiciled individuals or foreign entities.
Foreign individuals or non-domiciled entities receiving dividends from Peruvian companies are subject to a withholding tax rate of 4.1%, while Peruvian individuals or entities are also subject to the same tax rate.
00:04:40 Overview of Peruvian income tax with a focus on dividends and capital gains from securities. Criteria for determining Peruvian source income explained. The nationality of the issuer is a key factor.
💼 Rentas de fuente peruana son las generadas en actividades civiles, comerciales, empresariales o de cualquier índole en territorio nacional.
💰 Las rentas generadas por ganancias de capital en la venta de valores son consideradas renta de fuente peruana.
📜 El criterio de vinculación para determinar si una renta es de fuente peruana se basa en que las empresas o fondos que emitieron los valores estén constituidos en el país.
00:09:17 An overview of the Peruvian income tax law regarding income from Peruvian sources and dividends. Explains how a foreign company selling shares of a Peruvian company generates income from Peruvian sources.
📚 The video discusses the general aspects of income tax in Peru, specifically related to dividends.
💼 Companies and investment funds can be domiciled in Peru, while investment trusts cannot.
💰 Selling shares of a Peruvian company generates income from Peruvian sources, while selling shares of a foreign company does not.
00:13:55 This video provides an overview of the Peruvian Income Tax and focuses on the indirect transfer of shares or participation interests in Peruvian entities. The video explains the criteria for determining if a transaction qualifies as an indirect transfer and emphasizes the importance of assessing the market value of the shares involved.
💡 Article 10 of the Income Tax Law discusses the indirect sale of shares or participations in Peruvian companies.
📜 The law states that when shares or participations in a non-domiciled company are sold, if that company owns shares or participations in one or more Peruvian companies, it is considered an indirect sale.
💰 To determine if there is an indirect sale, the market value of the shares or participations in the Peruvian company must be considered.
00:18:33 This video discusses the general aspects of income tax in Peru and specifically focuses on dividend income. It explains how the market value of a company's shares affects the taxation of dividends.
📈 The value of a company's stocks determines the value of an individual's ownership.
🚀 For indirect sales, the value of the Peruvian company's stocks must be at least 50% of the total value of the company being sold.
💼 If the company has subsidiaries, their value also contributes to the overall value of the individual's ownership.
00:23:13 This video discusses general aspects of income tax in Peru, specifically regarding dividends. It explains the conditions for indirect sales of shares and the thresholds for valuation and percentage ownership.
📊 The video discusses the impact of stock market values on the market value of shares.
💼 The video explains the conditions for indirect sales of shares in Peru and the importance of ownership percentage.
💰 The video mentions additional provisions and presumptions regarding indirect sales of shares.
00:27:52 This video provides an overview of the Peruvian income tax and focuses on digital services and technical assistance. It explains the criteria for determining Peruvian source income and highlights the benefits of categorizing services as technical assistance.
⭐ The video discusses the two main concepts of digital services and technical assistance in relation to Peruvian income tax.
💡 Digital services and technical assistance are defined by Article 9 of the law and involve the provision of services through the internet and teaching someone how to do something independently.
🌍 If digital services or technical assistance are economically utilized within Peru, there will be Peruvian source income for the service provider.
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