This article provides a detailed overview of the availability and key conditions for sole proprietorship status in Peru as of 2025, focusing on the official simplified tax regime offered for individual entrepreneurs.
Availability of Sole Proprietorship in Peru
Peru enables individuals to operate small businesses under the Régimen Único Simplificado (RUS), also known as the Simplified Tax Regime. This framework is specifically tailored for sole proprietors and independent workers, allowing them to conduct business activities and invoice clients without the need to form a separate legal entity.
Key Features of the Régimen Único Simplificado (RUS)
The RUS regime is designed to be accessible and straightforward, targeting micro-entrepreneurs and individuals whose annual operations remain below established thresholds. This structure alleviates much of the administrative burden typically associated with business registration and ongoing tax compliance.
| Requirement / Feature | Detail (PEN) | USD Equivalent (1 PEN ≈ 0.27 USD in 2025) |
|---|---|---|
| Annual gross income or purchase limit | S/ 96,000 | $25,920 |
| Monthly fixed fee (minimum) | S/ 20 | $5.40 |
| Monthly fixed fee (maximum) | S/ 50 | $13.50 |
| Accounting requirements | No formal accounting required | – |
Under the RUS, participants are categorized into different brackets based on their sales or purchases, which in turn determines their fixed monthly tax payment. Importantly, this single payment covers obligations related to income tax and VAT, streamlining the process for small operators and eliminating the need to maintain extensive accounting records.
Eligibility and Practical Application
This status is widely accessible to Peruvian citizens aiming to start a small-scale, independent economic activity. The main eligibility condition is staying below the S/ 96,000 (~$25,920) annual ceiling for gross income or purchases. Once this threshold is surpassed, businesses must migrate to the general tax regimes, which entail more complex compliance and higher reporting requirements.
The RUS is considered practical and is actively used by a large number of micro-businesses, market vendors, and service providers throughout Peru. It notably reduces the administrative load compared to more traditional business forms, positioning it as an efficient entry point for small-scale entrepreneurs and sole proprietors seeking simplicity.
How the Monthly Fixed Fee Works
The fixed monthly fee due under RUS depends on the volume of monthly sales or purchases, as outlined below:
| Bracket | Monthly Sales/Purchases (PEN) | Monthly Fee (PEN) | USD Equivalent |
|---|---|---|---|
| I | Up to S/ 5,000 | S/ 20 | $5.40 |
| II | S/ 5,001 – S/ 8,000 | S/ 50 | $13.50 |
(Exchange rate reference: 1 PEN ≈ 0.27 USD in 2025. For precise conversions, verify current rates at the time of payment.)
Recordkeeping and Compliance
One of the core benefits of registering under the RUS regime is the absence of a formal accounting requirement. Taxpayers do not need to submit detailed financial statements or maintain extensive records, making it attractive for those seeking a hassle-free setup. This simplified compliance remains in effect as long as eligibility thresholds are not exceeded.
Pro Tips for Managing Sole Proprietorship Status
- Regularly monitor your annual gross income and purchases to avoid surpassing the S/ 96,000 (~$25,920) threshold, as exceeding this will require a shift to a more complex tax regime.
- Pay your monthly fixed fee before the mandated deadline each month to prevent penalties and to maintain your status within the RUS regime.
- Although formal accounting is not mandatory, consider keeping simple transaction records to facilitate tracking business performance and preparing for any potential migration to other regimes.
- Stay updated on any annual changes to income or purchase thresholds published by SUNAT.
Official Sources for Further Information
In summary, Peru’s RUS regime in 2025 continues to offer a practical, low-burden path for sole proprietors and micro-businesses. With clear income limits, extremely simplified compliance, and affordable fixed monthly payments, this option is especially suitable for those starting small operations or running independent consultancies. It remains key, however, to routinely verify that income and purchase volumes remain below the established ceiling, as changes to business scale will trigger a shift to more comprehensive tax rules.