Peru Issues Regulations on Indirect Foreign Tax Credit

Peru's Ministry of Finance and Economy has published Supreme Decree No. 369-2019-EF of 10 December 2019, which modifies the regulations of the Income Tax Law for the indirect tax credit provisions introduced by Legislative Decree No. 1424 with effect from 1 January 2019.

Decree No. 1424 introduced the possibility of an indirect foreign tax credit for dividends and other profit distribution income received by Peruvian entities in addition to the current direct credit. An indirect credit is …