|Research by Country/Region
January 18, 2018
|PERU: CUSTOMS, TAXES, and DOCUMENTATION REQUIREMENTS: IT PRODUCTS and SERVICES IMPORTS |
A. Is this country a member of the Information Technology Agreement?
B. Customs documentation requirements for IT products
C. Software: duties and taxes, updates, licenses, electronically delivered
D. IT services: tax treatment and other regulations
E. Refurbished, used, or repaired computer equipment imports
A. IS THIS COUNTRY A MEMBER OF THE INFORMATION TECHNOLOGY AGREEMENT?
Signatories to the Information Technology Agreement (ITA) have eliminated their import duties on a wide range of information technology products, including software and computer hardware. For more information on the ITA, and exact tariff elimination schedules of signatories, click here.
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B. CUSTOMS DOCUMENTATION REQUIREMENTS FOR IT PRODUCTS
What are the documentation requirements for the physical import of software? For other information technology products?
All software coming into the country has to include a Declaration of Importation provided by a customs agent unless the value of the software (or its medium) is less than $2,000. You also need transport documentation and the remission guide. If the software is taxable it will need to be verified physically and valued in the country of origin by a Customs supervision company (SGS, Bureau Veritas, among other). If it is not taxable, the invoice needs to separate the value of the device or medium from the value of the software. The same procedure needs to be followed for any intangible entering the country through a media.
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C. SOFTWARE: DUTIES and TAXES, UPDATES, LICENSES, ELECTRONICALLY DELIVERED
DUTIES AND TAXES ON SOFTWARE IMPORTS
Are duties assessed on the intellectual property of the software or on the medium on which is it presented?
In customs, software imports pay a 12% Ad Valorem duty over the CIF value (Cost, Insurance, Freight).
Since 1999 the norms affecting the importation of software have been aligned to the norm of the WTO. Duties for software will only be paid on the device (i.e. CD-ROM itself, or floppy disk) carrying the software and not the value of the software. This is the case only if the foreign supplier provides an invoice differentiating both amounts. For example if an invoice explicitly includes a value of $10 for the CD and $500,000 for the software, import duties will only be paid (12% ad valorem) for the $10. This is only the case in software that runs as a non-operating program.
However, under Peruvian customs, operating software that is delivered with a computer is to be treated differently. Since the software is integral to the initial operation of the computer, by Peruvian decree it forms part of the equipment, and thus must be treated as a part of the equipment, rather than software. In this case, tariffs are (or should be, legally) paid based upon total device value (including software value, rather than medium value), regardless of whether they enter the market physically or via an Internet download. Note: Internet downloads are not currently monitored for tax purposes.
Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?
In customs, software imports pay an 18% sales tax over the CIF + Ad Valorem value. To recover the 18% sales tax charged by Peruvian Customs, local companies charge this 18% when they sell their products to local end users.
Is customized software treated differently than packaged software?
Packaged and customized software are not treated differently.
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IMPORTS OF SOFTWARE UPDATES
What are the customs duties and tax implications for software sold with updates when the full sales price, including cost of updates, is shown on the original commercial invoice? Are duties and taxes paid on that amount? What happens when the updates are sent at a later date? Are duties/taxes applied again? If so, based on what value? How should information presented on the commercial invoice for the original and subsequent shipments to avoid paying duties/taxes more than once on a single sale?
In the case of updates, whose amount has been included in the original invoice and import tariffs have been paid already, no additional tariffs need to be paid considering that the updates are mentioned in the original invoice and conform with the delivery dates.
Updates that were not included in the original invoice and are charged separately need to pay import tariffs over the invoice amount. It is recommended that the first original invoice mention the value of all updates and the delivery dates.
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SOFTWARE LICENSES: CUSTOMS CLASSIFICATION, IMPORT DUTIES, TAXES, OTHER
Are software licenses classified in Harmonized System 4907?
Peruvian Customs classifies sofware license imports under HS Code 8524.310000 usually describing the products as "CD Sets".
Are import duties/taxes applied? If so, on what cost/price base are they levied?
The regulation in Peru does not apply any import duties for bringing intangibles into the country. However, some exceptions apply-- see below.
Are withholding or other additional taxes applied on software licenses? If yes, how?
On the other hand, if the property rights or license are transferred to the importer through a temporary transfer agreement they are considered royalties and for such the importer needs to hold back 30% income tax over the amount of the royalty. However, if the property right or license has been granted for lifetime use, it would not be considered as a royalty but as a price and would not be subject to any income tax.
If a U.S. license agreement is included in the packaging or is part of the installation/registration of shrink-wrapped software imported from the United States, would that agreement be binding on consumers in your market? If so, would U.S. or local laws pertain?
Peruvian consumers would be bound to the agreement. The relevant law depends upon what is mentioned in the agreement. Most of the agreements utilize U.S. law.
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SOFTWARE DELIVERED OVER THE INTERNET/ELECTRONICALLY DELIVERED SOFTWARE
Are taxes applied to software delivered to the end-user over the Internet? If so, on what value?
If the software sent through the Internet is taxable the purchaser should go to Peruvian customs and pay the taxes and duties by filling out the respective forms. However, Internet downloads are not currently monitored for tax purposes.
Would the situation be different if this software were instead delivered to a distributor who has a license to produce (replicate) and sell the software?
What are the documentation requirements for the electronically delivered import of digitized products (i.e. software, movie downloads) over the Internet or other networks?
If software or any other intangible is sent through the Internet, no import procedure (including documentation) is required at Peruvian customs.
Must an electronically delivered software import be accompanied by a physical shipment of the same product?
Peru does not have a legal norm that requires that cross-border, electronically delivered software be accompanied by a physical shipment.
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D. IT SERVICES: TAX TREATMENT AND OTHER REGULATIONS
Are services (i.e. training, set-up, etc) relating to the sale of software taxed? If so, at what rate and based on what value?
All services/products sold by IT companies in Peru pay an 18% sales tax plus an an income tax. Regarding the income tax we have three (3) different scenarios:
i) If part of the service is done outside of Peru, Peru's Tax Authority (SUNAT) charges a 12% income tax. For example is a US firm
charges a local company US$ 100 for a service, the local company will pay the US firm US$ 88.
ii) If the service is done entirely in Peru, SUNAT charges 30% income tax.
iii) If the service is done entirely outside Peru, no income tax is charged.
Are U.S. IT solution providers permitted to send personnel into the country to set up hardware/software-related systems?
U.S. providers are permitted to send personnel into the country to set up hardware/software systems.
Are special visa, work permits, and/or professional certification by an accredited body required?
No special working permits are needed if the installer comes only for a short time and receives his salary in the United States. If the installer becomes a subject of Peruvian labor law and payroll (drawing a salary from a Peruvian employer) then a work permit is required.
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E. REFURBISHED, USED, OR REPAIRED COMPUTER EQUIPMENT IMPORTS
1. REFURBISHED COMPUTER EQUIPMENT
Is the import of refurbished computer hardware, parts, and accessories (including toner cartridges) permitted?
Yes, imports of refurbished computers, parts and accessories are permitted in Peru.
If so, what are the documentation requirements?
The documents required are the same as for any importation: Declaration of Importation, invoice, transportation documents, supervising company verification, etc.
Is special labeling required?
What value should be shown on the invoice?
Peruvian customs uses the value stated on the invoice to calculate the taxes to be paid for refurbished computers and others. They do not use minimum amounts or references to apply taxes. But if refurbished computers or parts are sent without stating that they have been sold to an importer, customs uses commercial values of other similar imported goods to determine duties to be paid.
How are duties and taxes assessed?
The duties that normally apply are 12% ad valorem even though in some cases it can be less (4% or 7% depending upon the HS code).
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2. USED COMPUTER EQUIPMENT
Is the import of used computer hardware, parts, and accessories (including toner cartridges) permitted?
Same as for refurbished computer equipment-- see answers above.
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3. REPAIRED COMPUTER EQUIPMENT
Are duties and taxes assessed on the re-import of repaired computer equipment?
Yes, according to the general customs law the re-importation of equipment that was temporarily in a foreign country to be repaired needs to pay duties when returning. The value basis is the repair costs, plus transportation costs and a percentage for insurance.
How should the commercial invoice appear?
The commercial invoice needs to clarify the value for the service and the description needs to mention that it is a service repair invoice for a piece of equipment that needs to be described thoroughly.
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This response was prepared by the U.S. Department of Commerce/Commercial Service in Lima, Peru, in February and May 2003. For further clarification please contact:
U.S. Embassy Lima
Special Notes: The above information is intended to serve only as unofficial guidance. In seeking to obtain government rulings in specific cases, it will often be necessary to refer to special laws, separate regulations and announcements, and case-by-case decisions by the government. Beyond the general guidelines shown above, legal counsel should be retained at an early stage of consummation of a major procurement contract, and before entering into any legal commitments.
This page was last updated on 06/18/2009. This site is operated by the Office of Technology and Electronic Commerce (OTEC) division of the International Trade Administration, U.S. Department of Commerce.