The Governments of Peru and the United Kingdom signed a bilateral agreement on Thursday to prevent double taxation (known as DTA), which will enable measures to combat tax evasion and avoidance in commercial and financial relations between both parties.
Therefore,
Peru is moving forward to finalize bilateral agreements to prevent double taxation and tax avoidance (known as DTA), first with the United Kingdom and soon with France, Economy and Finance Minister Jose Salardi stated.
"The agreement signed today (Thursday) with the United Kingdom is important because it has been in the works for many years; besides, we have the matter of France for debate in Congress. The goal is to make progress in this direction so that investment can flow, leveraging the positioning we have as a country," he said.
The government official disclosed that the South American country is exploring double taxation agreements with new markets, including the United Arab Emirates, Saudi Arabia, Australia, and Singapore, "where requests will be submitted to begin negotiations."
To date, Peru has signed nine DTAs, including with Chile (2004), Canada (2004), the Andean Community (2005), Brazil (2010), Mexico (2015), South Korea (2015), Switzerland (2015), Portugal (2015), and Japan (2022).
Framework for Investments
The agreement signed with the United Kingdom will, among other benefits, establish a predictable, secure, and favorable regulatory framework for investments from companies in both the UK and Peru.
Similarly, it will contribute to the government's efforts to lay the foundations that will drive the economy in the coming years.
The covenant will offer British and Peruvian companies a set of guarantees against discrimination and the elimination of double taxation, which will apply once the treaty enters into force, after being ratified by the Congress of Peru and the United Kingdom.
Likewise, mechanisms for collaboration and mutual assistance will be established, allowing both countries' tax administrations to have the tools necessary to combat tax evasion and avoidance.
It is worth noting that the UK's investment in Peru reached US$12.97 billion over the past 20 years, including executed investments, commitments, and plans by British companies in the South American country.
The 83% of the British capital was concentrated in the metals sector, followed by food industries, energy, and tourism.