Peru modifies requirements for deducting wasted goods for income tax purposes

On 21 April 2020, Peru’s Executive Power issued Supreme Decree 086-2020-EF,
modifying the requirements for deducting “wasted goods” for income tax purposes.

Previously, the taxpayer had to notify the tax authorities at least six days before the wasted good were destroyed. Under the Supreme Decree, the taxpayer must notify the tax authorities at least two business days before the date the wasted goods will be destroyed before a public notary or a judge.

If the cost of goods to be destroyed plus the …