Peru is a country in South America, situated on the western side of that continent, facing the South Pacific Ocean and straddling part of the Andes mountain range that runs the length of South America. Peru is bordered by Ecuador and Colombia to the north, Brazil and Bolivia to the east, and Chile to the south. Peru is a country that has a diversity and wealth little common in the world. The main attractions are their archaeological patrimony (pre-Columbian cultures), their gastronomy, their colonial architecture (has imposing colonial constructions) and their natural resources (a paradise for the ecological tourism).
All residents are taxed on income that they earn worldwide, while non-residents are taxed only on Peruvian earned income. For the purposes of taxation a resident is a Peruvian national or a foreign national that has spent more than 183 days a year in the country. The status of residency is calculated on the first day of each year, so if in 2009 a foreign national spent 183 days in the country they will receive a tax bill in 2010. If a change in status occurs on the 2nd January, they will not receive a tax bill until 2011.
The tax year is the calendar year and joint tax returns can be filed for married couples and these can be done in the name of either spouse. Tax returns must be filed within three months of the end of the tax year. There are fines for those who fail to file their tax return or who file the return late. Taxable income is classed as income from employment, interest, dividends or royalties. Other forms of income may include pension payments or income from self employment. Those who are self employed must submit a tax return as should anybody who does not have their income tax withheld at source. Some employers may deduct the tax monies when the salary is paid, and make these payments to the tax office on the worker’s behalf.
Each individual is permitted an allowance on employment before they have to pay tax and those who are self employed are able to claim back reasonable work expenses such as protective clothing and office equipment. Capital income incurs a taxation rate of 6.25%, while income tax rates range from 15% to 30%. These rates apply to residents, while non-residents are subject to different rates, but this depends upon the type of income and the amount. Information on this can be obtained from the Peruvian tax office.
Visa, Residency & Immigration Laws
Tourists from North America, Australia, Japan and the European Union (and many others, see link below) receive a visa upon arrival for up to 90 days.
When entering the country, you need to pass the immigration office (imigracion). There you get a stamp in your passport that states the number of days you are allowed to stay (usually 90 days). You can get an extension at immigration offices in any major city for 20US$ per month plus 26 soles administration fee. Make sure to take your time, don't expect things to be ready within less than an hour or even a day. The maximum extension allows you to stay for up to 180 days in total. When those 180 days are up and you would like to stay for longer, it's possible to cross the border to a neighbouring country (Ecuador, Colombia, Brazil, Bolivia or Chile) and return the next day and obtain another 180 days. Of course you can also leave the country before your first 90 days are over.
There is a real property tax which is calculated on the value of the property but different rates apply to different values. The country has no inheritance taxes or wealth taxes, but capital gains taxes are payable. These are charged at 6.25% on the net income from sales of assets or property. Non-residents are subject to a capital gains tax of 30% and will pay the same rate on the transfer of property held in the country.