Peru Clarifies Exception from Interest Deduction Restrictions for Public-Private Partnerships

The Peru tax authority (SUNAT) has published Report No. 171-2019-SUNAT/7T0000 concerning the exception from interest deduction restriction rules provided for taxpayers that, through public-private partnerships, develop infrastructure projects, public services, or applied research and/or innovation projects.

The report clarifies that this exception applies in relation to the current thin capitalization rules (3:1) during the period 1 January 2019 to 31 December 2020, provided that the debt i…