Peru Modifies Reference Rate for Reduced Withholding Tax on Foreign Non-Related Party Loans

Peru has published Supreme Decree No. 137-2023-EF in the Official Gazette, which modifies the reference rate for the purpose of the reduced withholding tax rate of 4.99% for interest payments on foreign non-related party loans. As provided under Article 56 of the Income Tax Law, the 4.99% withholding tax rate may be applied for qualifying interest payments as long as the interest rate on the f…
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