Peru

The most ancient state of Peru is located in the northwestern part of the South American continent. It is one of the largest countries by area in South America - 1,285,220 km². The population of Peru is over 30 million people. The capital is Lima. It is a republic according to the political regime.

The country is administratively divided into 295 provinces, in most of which people speak Spanish. However, the indigenous population, the descendants of the ancient Indians, continue speaking Quechua and Aymara, which have been changed to some extent under the influence of the Spanish language. The monetary unit of Peru is the Peruvian sol.

Advantages

Peru is a country with a developing economy. It has a lot of natural resources, which gives an excellent basis for the development of heavy industry, the oil refining sector and the export of petroleum products. In addition, you can freely export capital from Peru, which allows entrepreneurs to quietly conduct their business in the country.

After completing the registration procedure for its own company in Peru, the owner of international business will obtain a number of advantages:

completely transparent procedure for the company’s opening, however, in some cases it may take 2.5 months;
preferential taxation system for owners of medium-sized and small businesses;
wide opportunities for opening an enterprise in the sphere of services and tourism (restaurant, hotel, entertainment center);
the government gives a license to non-residents for the company’s work in a special register, as well as issues a special permit for signing documents;
possibility of opening a company remotely, through a trustee from the Peruvian consulate.

Increase in globalization and foreign trade in the last century led to aggressive tax planning. Though these planning measures are legitimate, they are designed for shifting profits to low tax jurisdictions. There is a number of measured to deal with this tax abuse. In particular, some jurisdictions apply controlled foreign corporation (CFC) rules. Historically, the CFC concepts were created to help prevent tax evasion achieved by setting up offshore companies in tax havens, such as Bermuda...

Non-discrimination articles have been used in tax treaties over a number of years, they are designed to place non-discrimination requirements on the source country rather than on the residence state. There may arise cases where a country provides favourable treatment to its nationals and discriminates against foreigners. To circumvent such cases tax treaties provide a clause which restricts contracting states from offering discriminatory treatment to foreign nationals as compared to its...

Back in the first quarter of 2018, namely on February 19, 2018, a draft of advisory document was published on the official website of the Organization for Economic Cooperation and Development (OECD), which called on all interested parties to join the discussion on the OECD strategy for combating the loopholes on using the Common Reporting Standard (CRS, Single standard of tax information exchange) in the “citizenship by the investment” (CBI - granting citizenship in exchange for...

Taking into account an extremely unstable tax legislation of Ukraine, more and more business owners are thinking about tax planning for their enterprise or holding. Tax planning is the process of choosing the most optimal form of taxation and reducing the tax burden on business by using certain methods. Methods of tax planning for business The methods or ways by which tax planning is implemented can be conditionally divided into: tax optimization; tax minimization; tax...