Various laws and supreme decrees introduced tax amendments to the income tax and excise tax, effective as from 1 January 2008. The main amendments are summarized below.

Capital gains from securities

Capital gains derived by non-domiciled legal persons are subject to withholding tax at the general rate of 30%. However, capital gains from the alienation of securities are subject to income tax at the rate of 5% when the alienation is carried out within the country (Law 29,168 published in the Official Gazette of 20 December 2007 and in force as from 1 January 2008).

Royalties from copyrights

Royalties derived by foreign or national authors or translators from copyrights related to books edited and printed in Peru are exempt from income tax (Law 29,165 published in the Official Gazette of 20 December 2007 and effective as from 1 January 2008 until 31 December 2013).

Financial instruments

Various provisions regarding derivatives (IFD) were introduced in the regulations to the income tax law, i.e. definitions of IFD concluded for financial intermediate purposes and IFD concluded in recognized markets, deductible expenses, losses set-off, adjustments to calculate the income tax and calculation of income from foreign currency operations (Supreme Decree 219-2007-EF published in the Official Gazette of 31 December 2007).

Interest

Interest and other income from loans granted to the national public sector is exempt from income tax (Supreme Decree 219-2007-EF published in the Official Gazette of 31 December 2007).

Excise duty

Annual tax unit

The annual tax unit for 2008 is PEN 3,500.