Peru: Recent direct and indirect tax changes

Including extension of certain VAT and excise tax incentives and R&D tax benefits

The following direct and indirect tax changes in Peru were recently implemented:

Law 32542 (published December 31, 2025, and effective January 1, 2026) extends until December 31, 2028, the value added tax (VAT, or impuesto general a las ventas (IGV)) exemption for the import or domestic sale of certain basic goods and on specified services, including financial and international freight transportation services.
Law 32540 (published December 31, 2025, and effective January 1, 2026) extends until December 31, 2028, the excise duty (impuesto selectivo al consumo (ISC)) refund incentive on diesel for eligible public passenger and cargo transportation services originally introduced under Emergency Decree 012‑2019 and previously extended under Law 31,647.
Law 32539 (published December 31, 2025, and effective January 1, 2026) extends until December 31, 2028, the availability of additional deductions for research and development (R&D) expenses and clarifies the income tax consequences if projects are not completed within the applicable incentive periods or fail to meet their objectives.
Supreme Decree No. 015‑2026‑EF (published and generally effective February 11, 2026) provides guidance under Law 32434 regarding the taxation of small agricultural producers and agricultural companies. The decree sets out special income tax rules, additional deductions for purchases from small producers, and VAT (IGV) benefits, including the reintegro tributario and temporary exemptions, while also establishing eligibility requirements, documentation standards, and verification procedures by the tax and agricultural authorities. The regulations further define the annual limit for accessing the simplified customs drawback regime, with certain provisions becoming effective 180 business days after publication.
Legislative Decree No. 1714 (published February 4, 2026, and effective March 1, 2026) provides guidance on the VAT perceptions regime under Law 29173. The decree incorporates and clarifies exceptional cases in which the 10% VAT perception rate applies to the importation of goods, based on the importer’s risk level and tax and customs compliance. It also expands the situations triggering the 10% rate, such as first‑time imports linked to a single cargo manifest, failure to file VAT (IGV) or income tax returns, or being designated as a non‑operative taxpayer, while updating related definitions, exclusions, and calculation rules.

For more information, contact a KPMG tax professional in Peru:

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Peru: Recent direct and indirect tax changes

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