Peru’s Ministry of Economy and Finance (MEF) issued a new decree establishing that companies with net losses may discount more interest from the income tax (IR, in Spanish) estimate.
Until last year, companies deducted up to 30% interest payments of their Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the income tax return for third category expenses. The Ebitda calculates a company’s earnings before paying taxes, interest, depreciation, and amortization. Because of this, before the new decree, companies that had no profits could not deduct anything since their Ebitda was zero. It is worth mentioning that the net interest that could not be deducted in the fiscal year because it exceeds the aforementioned limit may be added to the interest corresponding to the following four (4) fiscal years, being subject to the limit according to the regulations.
To this end, for companies that had profit losses, the Ebitda will be estimated to be zero and not negative, adding then the depreciation, amortization, and financial expenses. To this result, 30% is calculated to deduct financial costs.
The new measure adopted by the MEF establishes a change to the Ebitda limit that allows companies that did not obtain profits to access this benefit since they will be able to calculate the Ebitda on a zero and non-negative basis, adding the net interest, depreciation, and amortization deducted in the fiscal year. To that amount, calculate 30% to deduct financial expenses (amount of deductible interest). In this way, companies will be able to deduct some amount to pay their interest.
In the case of companies that have just started operations, the Ebitda limit will not be from the previous taxable year (which does not exist since it is newly constituted), but from the year it began operating as a legal entity.
Income Tax for Self-employed Workers
As established by SUNAT (National Superintendency of Customs and Tax Administration), this year, self-employed workers (4th category) who issue receipts for fees and with monthly income below S/3.354 (874,58 USD) are not forced to pay the Income Tax. This is based on the increase of the UIT (Monthly Tax Unit), which increased from S/4.400 (1147,33 USD) to S/4.600 (1199,48 USD.)
Also, those who project their income in 2022 for fourth or fifth category income not exceeding S/ 40.250 (10495,44 USD) may require suspension of withholdings or their payments on account of income tax.