Peru Gazettes Law Introducing Beneficial VAT, Income Tax Regime for Agricultural Sector

The Peruvian Official Gazette Sept. 10 published Law No. 32434, on VAT and income tax measures for the agricultural sector, effective Jan. 1, 2026. The law includes measures: 1) exempting small agricultural producers with net annual income up to 30 tax units (UIT), and applying a 1.5 percent tax rate for producers with income exceeding 30 UIT and up to 150 UIT; 2) requiring small producers exceeding 150 UIT to apply the general income tax regime; 3) allowing accelerated depreciation at 20 percent annually, for irrigation and hydraulic infrastructure investments made between 2026 and 2035; 4) allowing an additional 25 ...