Understanding the Income Tax Regime for Dividends in Peru

📜 The video discusses the applicable regime for dividends and the history of dividend taxation in the country.

💰 Dividends in the country are subject to a 4.1% retention tax, and there was a temporary reduction in corporate income tax in the past.

📊 Dividends are only taxed for non-domiciled shareholders and domiciled natural persons or entities.

📝 The article defines dividends as the profits distributed by juridical entities among their shareholders or partners.

🔍 The law specifies when other forms of distributions are considered as dividends, including converting profits into capital and reducing the capital afterwards.

💼 The recent modification in the law aims to address complications arising from the inclusion of certain accounts in the company's patrimony.

💡 There are several accounts in the exercise that are important to mention, including accumulated results, legal reserves, revaluation surplus, capital premiums, and expression adjustments.

💰 The video discusses the concept of dividends and how they can be generated through the reduction of capital and the distribution of certain accounts like revaluation surplus and expression adjustments.

📝 The law considers capital reductions as dividends if certain accounts, such as accumulated results, legal reserves, and others, have been capitalized prior to the reduction.

📋 The video discusses the general aspects of income tax and the applicable regime for dividends.

💰 It explains how reducing capital and capitalizing profits can avoid paying taxes on dividends.

💡 The law aims to prevent double taxation by only taxing the initial capital reduction or subsequent distribution of profits.

📌 The video discusses the tax regime applicable to dividends and capital reductions.

🔍 The law only allows for the distribution of dividends from reserves of free disposal.

💡 Capitalizations and reductions must be considered in chronological order to determine if dividends are payable.

📋 The video discusses the general aspects of income tax and the applicable regime for dividends.

💰 The law presumes that if a company lends money to its shareholders without the obligation to repay, it is considered a distribution of dividends subject to taxation.

🔢 The amount considered as dividends is proportional to the shareholder's ownership in the company's profits or reserves.

📜 The video discusses the concept of dividends and when a loan becomes a dividend.

💰 The obligation to retain dividends arises when the distribution agreement is adopted or when the dividend is paid.

🏢 Certain entities like trusts have different rules for dividend retention.