On 8 May 2020, Peru’s Executive Power issued Legislative Decree 1481, which establishes a special rule for carrying forward losses incurred during fiscal year 2020. The legislative decree responds to the COVID-19 crisis.
Generally, a Peruvian company may carry losses forward in one of two ways:
According to Legislative Decree 1481, companies that opt for System A may carry losses incurred in tax year 2020 forward for five years instead of four, counted from tax year 2021.
Legislative Decree 1481 will go into effect on 9 May 2020.
For additional information with respect to this Alert, please contact the following: