Peru: New income tax regime for agricultural sector
Effective January 1, 2026
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September 12, 2025
Law No. 32434 was published on September 10, 2025, aiming to establish a legal framework that promotes the productive, competitive and sustainable transformation of the agricultural sector.
Among other issues, the regulation establishes a new tax regime for companies in the agricultural sector as of January 1, 2026. The highlights are as follows:
- The income tax rate from 2026 to 2035 will be 15%. From 2036 onwards, the general regime rate will apply (the rate in force to date is 29.5%).
- The depreciation rate applicable to investments in hydraulic infrastructure works and irrigation works affected by the production of taxable income acquired or built as of 2026 will be 20%.
- There will be an additional deduction of 25% on the value of products purchased from small producers registered in the SUNAT Agricultural Producers Registry.
- A refund of value added tax (VAT (18%) will be available for taxpayers that produce and sell agricultural goods exempt from VAT. Thus, the VAT of the acquisitions they make may be refunded, subject to compliance with certain requirements.
- Taxpayers that produce and sell agricultural goods exempt from VAT who have waived this exemption may benefit from it again.
Read a September 2025 report (English and Spanish) prepared by the KPMG member firm in Peru