Peru (PE)

Peru combines world-class food, ancient Inca heritage, Pacific coastline, Amazon rainforest, Andean cities and one of Latin America's lower cost-of-living profiles.

Capital: Lima

Region: Americas

Language: Spanish

Currency: PEN (S/)

Cost of living: Very affordable (index 30)

Emergency: 105

Tax & Payslip Guide

Understanding your taxes in Peru — tax year Calendar year, 1 January-31 December.

📅

Tax Year

Calendar year, 1 January-31 December

⏰

Filing Deadline

Annual SUNAT schedule usually falls in March-April of the following year based on final RUC digit; confirm each year.

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VAT (Standard)

18% IGV (16% VAT plus 2% municipal promotion tax)

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	5	8%	First 5 UIT of taxable labour income after the standard 7 UIT deduction. 2026 UIT value: S/5,500 (per Supreme Decree 301-2025-EF). Standard deduction = 7 × S/5,500 = S/38,500. This 8% bracket covers taxable income up to S/27,500 above the deduction.
5	20	14%	Next band for annual labour income.
20	35	17%	Middle band for higher earners.
35	45	20%	Upper-middle band.
45	∞	30%	Top progressive labour-income band.

🏛️ Social Contributions

EsSalud

Employee: 0%

Employer: 9%

Mandatory employer health contribution for formal employees, calculated on remuneration and not below the RMV base.

ONP public pension

Employee: 13%

Employer: 0%

Employee pension deduction if the worker chooses the public pension system.

AFP private pension

Employee: Approx. 10% fund contribution plus insurance and commission

Employer: 0%

Private pension option; rates vary by AFP and commission type.

SCTR

Employee: 0%

Employer: Variable

Complementary high-risk work insurance for listed risk sectors; employer-paid where applicable.

🛒 VAT Rates

18% IGV (16% VAT plus 2% municipal promotion tax)

Standard

Selected exemptions and special regimes rather than a broad reduced-rate system

Reduced

0% for exports and specific exempt operations

Super reduced

Small businesses may use simplified regimes; invoices/receipts must follow SUNAT rules.

🧾 Sample Payslip Decoder

Gross Salary S/8,000/month

Gross salary + S/8,000.00

ONP pension deduction (public pension system, 13%) - -S/1,040.00

Fifth-category income tax withholding (quinta categoría — monthly estimate) - -S/570.00

Net Salary (Take-home) S/6,390/month

Illustrative for 2026 under the general labour regime (ONP public pension). Gross S/8,000/month (S/96,000/year). ONP 13%: S/1,040. 5th category income tax: annual taxable base ≈ S/59,950 (after 7 UIT ≈ S/36,050 exemption); tax at 8% on first S/25,750 plus 14% on balance ≈ S/6,841/year ≈ S/570/month. Net = 8,000 − 1,040 − 570 = S/6,390. Employer additionally pays EsSalud 9% (S/720/month) — not deducted from employee. AFP (private pension) employees have different deduction: approximately 12–13% total (fund contribution + insurance + AFP fee), resulting in a different net. Peru also provides: July and December gratificaciones (one month gross each), CTS deposits (approximately 1.1 months gross/year in May and November), and 30 days paid annual leave.

🌍 Special Expat Tax Rules

Tax residence generally begins after more than 183 days of physical presence in Peru during any 12-month period. Domiciled residents are taxed on worldwide income; non-domiciled individuals are generally taxed on Peruvian-source income. Remote workers should obtain advice before crossing day 183.

📋 Double Tax Treaties

Peru has a limited treaty network and is part of Andean Community tax rules. Check treaty treatment before relying on foreign salary, pensions, dividends or consulting income.

Superintendencia Nacional de Aduanas y de Administracion Tributaria (SUNAT)

https://www.sunat.gob.pe

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