1. Introduction to Peru
Peru, officially the Republic of Peru, is a country located in western South America. It is bordered by Ecuador and Colombia to the north, Brazil to the east, Bolivia to the southeast, Chile to the south, and the Pacific Ocean to the west. Peru is the third-largest country in South America by land area, after Brazil and Argentina. It is also the fifth-most populous country in South America, with a population of over 33 million people.
Peru has a rich and diverse history, dating back to the pre-Incan civilizations of the Moche and Nazca. The Inca Empire, which ruled Peru from the 13th to the 16th centuries, was one of the largest and most advanced empires in the Americas. Peru was conquered by the Spanish in the 16th century and remained a Spanish colony for over 300 years. Peru gained its independence in 1821 and has been a republic ever since.
2. Recent Significant Economic Developments in Peru
Peru's economy has grown significantly in recent years, thanks to a combination of factors, including high commodity prices, increased foreign investment, and sound economic policies. In 2022, Peru's GDP grew by 2.7%, and it is expected to grow by 3.6% in 2023.
One of the most significant recent economic developments in Peru is the country's recovery from the COVID-19 pandemic. The pandemic caused a sharp contraction in Peru's economy in 2020, but the economy has since rebounded strongly. In 2022, Peru's GDP grew by 2.7%, and it is expected to grow by 3.6% in 2023.
The recovery has been driven by strong growth in the mining, construction, and services sectors. The mining sector is particularly important to Peru's economy, as it accounts for over 10% of GDP and over 50% of exports. The construction sector has also been a major driver of growth in recent years, thanks to government investment in infrastructure projects. The services sector has also grown strongly, thanks to increased tourism and consumer spending.
3. Latest Adjustments to Peru's Tax Legislation
Peru's tax legislation has been amended several times in recent years. The most significant changes include:
- The introduction of a new income tax law in 2019. The new law simplified the tax system and reduced the number of tax rates.
- The introduction of a new value-added tax (VAT) law in 2021. The new law increased the VAT rate from 18% to 19%.
- The introduction of a new excise tax law in 2022. The new law increased the excise tax on tobacco and alcohol products.
These changes are expected to have a significant impact on the Peruvian economy. The new income tax law is expected to reduce tax revenues by about 1% of GDP. The new VAT law is expected to increase tax revenues by about 0.5% of GDP. The new excise tax law is expected to increase tax revenues by about 0.2% of GDP.
The Peruvian government has stated that these changes are necessary to increase tax revenues and reduce the budget deficit. The government has also stated that the changes will make the tax system more fair and efficient.
If you are interested in learning more about Peru's tax legislation, please click the button below. We will provide you with a free consultation and answer any questions you may have.
