The taxation of capital gains resulting from the transfer of securities in Peru is on the brink of change. Legislative Decree 972, in force as of January 1, 2009, intends to modify the past regime repealing the long standing income tax exemption to this type of capital gain. In this commentary, Gustavo Lazo, a partner in Estudio Olaechea and his associate Giorgio L. Massari Figari discuss the recent enactment of the law and its implications.
The authors write: The taxation of capital gains resulting from the transfer of securities in Peru is on the brink of change. The long standing income tax exemption on this sort of capital gain has aimed to provide the necessary encouragement for investors.
Nevertheless, Legislative Decree 972 (LD), published in the Official Legal Gazette on the 10th of March, 2007, into force as from the 1st of January of 2009, intends to modify this regime. Not only will the referred exemption be repealed, but other changes to the taxation of capital gains in Peru will also occur.
However, meanwhile, a bill has been presented for approval before Congress by the Executive Power in order to postpone the entry into force of the LD to the 1st of January of 2010. This is a response to the current financial crisis affecting capital markets worldwide.
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