• 1. Freight tax

Freight tax

Peruvian source income obtained by non-residential shipowners and/or operators is subject to withholding as follows:

Voyage Charter
Income tax:
30% of Peruvian source income, which is considered to be 2% of the gross freight earnings derived from international transport activities (=0.6% of gross freight)

Time Charter
Income tax:
10% of Peruvian source income, which is considered to be 80% of the income derived from the lease of vessels used in international trade (= 8% of the gross hire).

Exemption Agreements

Residents of the following countries may benefit from double taxation agreements, which reduce or waive the income tax on voyage earnings. 

Country Reduction Date of entry into force Date of effect
Bolivia 1 100%   01/01/2005
Brazil 100%   01/01/2010
Canada 100% 17/03/2003 01/01/2004
Chile 100% 13/11/2003 01/01/2004
Colombia 1 100%   01/01/2005
Ecuador 1 100%   01/01/2005
Korea, Republic of
100% 03/03/2014 01/01/2015
Mexico 19/02/2014 01/01/2015
Portugal
12/04/2014 01/01/2015
Switzerland
100% 10/03/2014 01/01/2015
Limited transportation treaties (Air and/or Sea)
Argentina 100%    
Comprehensive treaty negotiations currently in progress
Signed but not ratified
Spain   Signed 06/04/2006  
In the process of negotiation or finalised but not signed
France      
Italy      
Japan      
Qatar      
Singapore      
Sweden (New agreement to replace expired DTA)
Thailand      
United Kingdom      
United Arab Emirates      
Exemption by virtue of Exchange of Notes
USA      
Exemption is also available on the basis of reciprocity.2
BIMCO understands that the Netherlands, Norway and Japan are covered on the basis of reciprocity.

Notes

  1. Exemption based on Andean Pact agreement.
  2. In the absence of an exemption agreement, it is possible to obtain exemption based on reciprocity by establishing that the freight recipient's country does not collect such taxes from Peruvian shipowners.

    Owners and/or operators who wish to claim such exemption must produce a certificate from the taxation office of the resident country confirming that the company is taxed in the country of residence. Such certificates must be authorised by the Peruvian Consulate at the country of issue and legalised by the Ministry of Foreign Affairs. 

    Sample certificate / affidavit

    "To whom it may concern:

    This is to certify that pursuant to (Country where company is incorporated or has its head quarters) legislation, gross income received by Peruvian Shipping Lines, originated from maritime transportation between (name of country) and foreign ports, are exempted from income tax in our country.

    This affidavit issued on request of (Insert carriers full name) to be filed with the Peruvian Tax Administration.

    XXX…. X day of …. 201X" 

Remarks

Income derived from the employment of vessels in cabotage trade is subject to withholding tax of 30 percent on the gross revenue.

 

 

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