Peru proposes extending income tax exemption for savings

The Peruvian government has approved a bill to extend the income tax exemption on interest earned from savings deposits within the financial system. The current exemption is set to expire on December 31, 2026.

Proposed by the Ministry of Economy and Finance (MEF), the initiative seeks to modify Article 19 of the Income Tax Law to prevent savers from being taxed on their interest starting in 2027. While the project aims to prolong the benefit, it will also introduce new requirements for eligibility, though specific details regarding these conditions have not yet been made public.

The Presidency of the Council of Ministers (PCM) approved the project unanimously and has agreed to send it to Congress with urgent status. While the executive branch is working to prevent taxation from 2027, there are discussions regarding extending the exemption further, with some legislative proposals suggesting a deadline as late as December 31, 2029.