Peru: individual tax residence and income

Worldwide versus domestic-source scope

Tax-domiciled individuals are subject to covered income regardless of nationality or source location. Non-domiciled individuals are taxed on covered Peruvian-source income. Holding a passport or receiving money in a particular bank account does not replace this statutory distinction.

Foreign-individual presence and timing

A foreign individual becomes tax-domiciled after more than 183 calendar days of residence or presence in any twelve-month period. Status is generally determined at the start of the tax year, with changes effective the following year. Physical-presence counting includes arrival and departure days, even partial days.

Peruvian nationals and return

For Peruvian nationals, Article 7 uses domicile under ordinary law. A Peruvian who lost tax domicile regains it on returning unless the return is temporary, with presence of no more than 183 days in any twelve months; the annual timing rule must also be applied.

Losing tax domicile

Except for designated overseas public representatives, leaving Peru and acquiring evidenced foreign residence can end domicile when both conditions are met. Without that evidence, the regulation applies loss from 1 January after at least 184 days' absence in the preceding twelve months; departure and return days are excluded from absence counting.

Limited foreign-tax credit

Foreign income tax on foreign-source income taxable in Peru can qualify for a credit capped by both the actual foreign tax and Peru's average-rate limit. Unused amounts cannot be carried to other years or refunded under Article 88(e).

Treaty rules can modify allocation

SUNAT explains that applicable double-tax conventions can allocate taxing rights to one state or share them. The relevant in-force agreement and income must be checked; domestic worldwide-income liability does not mean the same income is necessarily taxed twice without relief.