Peru

The sale or the transfer of ownership of an aircraft is subject to the general sales tax (VAT) which is equivalent to 18% of the sale value. The seller withholds and pays the tax within one month of the sale. There are no exemptions applicable to these operations. 

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According to Peruvian law, the sale of goods in Peru is subject to the General Sales Tax (VAT). This tax is not levied on transfers of property outside Peruvian territory. 

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According to Article 1 of the General Sales Tax (VAT) Law, there is a tax on Purchases and Sales of movable property located in the national territory, which is carried out in any of the stages of the production and distribution cycle, whether new or used, regardless of the place where the contract is entered into or the place where the payment is made.  The rate of the VAT is 18% which includes the own rate of the VAT 16% plus a municipal promotion tax equivalent to 2%. 

The seller, in his capacity as taxpayer of the VAT, must present a sworn declaration on the taxed and exonerated operations carried out in the tax period of the previous calendar month, in which they will leave a record of the monthly tax, of the tax credit and, if applicable, of the tax withheld or collected. They shall also determine and pay the resulting Tax or, if applicable, determine the balance of the tax credit that has exceeded the Tax for the respective period. 

In accordance with Article 33 of the General Sales Tax, the export of goods or services is not subject to the General Sales Tax; in this case, the sale of movable goods by a person domiciled in the country to a person not domiciled is considered an export of goods, regardless of whether the transfer of property occurs in the country or abroad, provided that such goods are subject to the definitive customs export procedure. 

With respect to customs legislation, Article 60 of the General Customs Law provides for a definitive export regime that allows national or nationalized merchandise to leave the customs territory for final use or consumption abroad, which does not affect any tax. 

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The import of goods is taxed with the General Sales Tax, whose rate is 16% plus a municipal promotion tax equivalent to 2%. 

However, customs legislation establishes a Temporary Admission Regime for re-export, established in Article 53 of the General Customs Law. 

This regime allows the entry into the customs territory of certain goods (among which are aircraft, parts, parts and engines), with suspension of payment of customs duties and other taxes applicable to imports for consumption and surcharges if applicable, provided they are identifiable and are intended to meet a specific purpose in a specific place to be re-exported in a specified time without undergoing any change, with the exception of normal depreciation arising from the use that has been made of them. 

Temporary admission for re-export in the same state is automatically authorized with the presentation by the person or the company owning and/or consigned for such purposes of the declaration and guarantee to the satisfaction of SUNAT with a term equal to the term requested and in the case of goods restricted by the term granted by the competent sector, without exceeding the maximum term of eighteen (18) months computed from the date of release. If the term is shorter, the extensions shall be automatically approved with the renewal of the guarantee before the expiration of the term granted and without exceeding the maximum term. 

In order to formalize the document that contains any transaction regarding an aircraft, it must be notarized before any Notary Public; the cost is determined by the market and varies according to the Notary Public to which it is attended.  

For the execution of the agreements contained in said documents, the Judicial Branch must be consulted in an executive process. The cost of the judicial process is governed by the judicial fees in force, which are updated annually.  

The formalized document must be presented before Public Registries in order to be registered in the Aircraft Registry, for which registration fees calculated according to the type of transaction carried out must be cancelled. 

There are no possible exemptions; and payment of the fees will be made each time the formalization service is required, the judicial body is called upon and/or registration with public registries is requested. The registration process can be carried out by any of the interested parties. In the case of a judicial process, the party harmed by the breach of the terms of the transaction has a legitimate interest. 

An administrative fee must be paid to the National Superintendence of Public Records, which depends on the value of the aircraft consigned in the Single Customs Declaration. 

In our legislation, there is no luxury tax for aircraft.

In effect, the lease paid by the lessor in favor of the lessee for the use and enjoyment of a movable good in this case of the aircraft is taxed with the first category income tax, in accordance with numeral B of article 23 of the Income Tax Law. 

The payment of first category income tax amounts to a rate of 6.25% of your net income and is declared and paid by the lessor annually within the terms established in the Tax Code, within the first quarter of the fiscal year following the declared fiscal year.  

In case the lessor, i.e. the taxpayer, is a non-domiciled person, branches, agencies or any other permanent establishment in the country of sole proprietorships, companies and entities of any nature incorporated abroad, that develop the aircraft rental activities, it is presumed that they obtain net income from Peruvian source equal to the amounts resulting from the application of the 6.5% of the 60% of the gross income they receive from the aircraft rental. 

In the event that the operating company is domiciled in Peru, all income obtained from its commercial activities is taxed with the Income Tax of the third category. The rate amounts to 29.50% of their net income.  

If the operating company, a branch or permanent establishment of a foreign company, will only be taxed with income tax, those incomes from Peruvian source, applying according to the activity, a presumption that air transport activities between Peru and abroad, obtain net income from Peruvian source, equal to 29.5% of 1% of gross income.  

It should be noted that according to Article 79 of Aviation Law No. 27261, National Commercial Aviation is reserved to Peruvians and/or Peruvians companies, excluding non-domiciled legal entities.  

When aircraft are intended for private use, they are not taxed.  

When the aircraft belong to a company and are used for the purpose of producing income or maintaining the source of production of the business; the expenses incurred for its maintenance and operation are deducted from the gross income for the purpose of calculating the tax base of the third category income tax. 

Paragraph b) of article 9 of the Income Tax Law indicate that in general, and regardless of the nationality or domicile of the parties involved in the operations and the place where the contracts were entered into or complied with, income from Peruvian source and, therefore, subject to Income Tax, was considered income produced by capital, goods or rights -including the royalties referred to in article 27- physically placed or economically used in the country. 

In this sense, article 10 of the Income Tax Law provides that interest, commissions, premiums and any additional sum to the interest agreed upon for loans, credits or, in general, any capital placed or economically used in the country is also consider income Peruvian source. 

In these cases, the taxpayer must declare and pay a tax equivalent to 6.25% of net income. If the taxpayer is subject to the third category regime, it must be the debtor who withholds the tax at the time of payment. 

In Peru there is no law that seriously affects carbon emissions; however, a general scope regulation called Law N°30754 Framework Law on Climate Change has been foreseen, which seeks to promote public policies for the integral, participative and transparent management of climate change adaptation and mitigation measures. 

With regard to the private sector, a bonus system has been created whereby a private company can optionally acquire the so-called “CARBON BONS or CARBON CREDITS” in a voluntary market through projects that reduce the emission of gases into the environment, contributing to reducing the greenhouse effect caused by global warming. 

Cargo transportation services from the country to the exterior and from abroad to the country are exempt from payment to the VAT. On the other hand, the transportation of cargo within the national territory is taxed with VAT. 

Regarding the airport, the airline must sign contracts for access before the competent administrative authority, allowing it to make use of the airport facilities in order to start their business operations, for the right to use these spaces must be paid monthly rent that is called access fee. 

Regarding passenger’s service, it is taxed with VAT (18%). Additionally, they will pay an airport tariff or Unified Rate of Airport Use (TUUA) which is related to the various services provided by the airport to passengers in its facilities. The TUUA must be included in the air tickets. 

According to Peruvian legislation the sale in the country at the level of producer or import of fuel “Turbo Jet A1” intended for aviation companies is not taxed with the ISC and VAT. However, airlines need to apply a Customs procedure, in order to not be taxed. 

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