The following guide presents a clear, data-driven overview of the individual income tax framework in Peru for 2025. It explains the progressive tax structure, key income brackets, and the special rates that apply to non-domiciled individuals, offering concise information directly from the latest available data.
Overview of Peru’s Individual Income Tax System
Peru operates a progressive personal income tax regime based on total income earned. The system applies graduated rates depending on the level of income, and the local currency used for calculation is the Peruvian Sol (PEN). The primary assessment basis is total income, and tax obligations can differ significantly between residents (domiciled) and non-residents (non-domiciled individuals).
Income Tax Rates and Brackets for 2025
The following table outlines the income tax brackets and associated rates for individuals in Peru for 2025. All amounts are expressed in thousands of Peruvian Soles (PEN); for international context, USD conversions are included using an estimated rate of 1 PEN = 0.26 USD.
| Taxable Income Range (PEN, thousands) | Taxable Income Range (USD, thousands) | Rate (%) |
|---|---|---|
| PEN 0 – PEN 5 | $0 – $1.3k | 8% |
| PEN 5 – PEN 20 | $1.3k – $5.2k | 14% |
| PEN 20 – PEN 35 | $5.2k – $9.1k | 17% |
| PEN 35 – PEN 45 | $9.1k – $11.7k | 20% |
| PEN 45+ | $11.7k+ | 30% |
The tax system applies increasing rates to higher segments of income. As income rises, so does the rate at which it is taxed above each respective bracket threshold.
Notes on Taxable Income Calculation
Personal income tax liabilities are determined by applying the prescribed rates to the taxable income accrued or generated within a fiscal year. Income falling within each bracket is taxed at the corresponding marginal rate, ensuring that taxpayers benefit from the lower rates applied to their initial earnings.
Special Surtax for Non-Domiciled Individuals
Non-domiciled individuals—those not considered residents for tax purposes in Peru—face a distinct tax treatment. A flat rate is imposed on all gross income arising from Peruvian sources.
| Taxpayer Status | Applicable Income | Flat Rate (%) |
|---|---|---|
| Non-domiciled individual | Gross Peruvian-source income | 30% |
This higher, 30% flat rate applies irrespective of the amount earned, and is a key factor for non-residents considering operations or assignments in Peru.
Analysis: How Peru’s Tax Rates Affect Individuals
The progressive nature of Peru’s tax regime means individuals with higher earnings are taxed at increasingly higher rates, up to a maximum marginal rate of 30%. For non-domiciled individuals, the 30% flat rate on gross income is designed both as a source-based tax and as a simplification, since deductions and credits generally do not apply.
Current data for holding periods or minimum tax payment terms related to capital gains or other specific income streams has not been publicly disclosed by Peruvian authorities. In practice, most taxpayers will be focused on the above-stated progressive regime for their ordinary income.
Pro Tips for Navigating Peruvian Income Tax
- Track all sources of income: Ensure you accurately report all taxable income from Peruvian sources, especially if you have both local and foreign income streams.
- Understand your residency status: Tax rates and obligations differ for domiciled versus non-domiciled individuals. Confirm your status early in the fiscal year for correct compliance.
- Take note of progressive brackets: Marginal rates apply as income increases, so calculation errors at bracket boundaries can lead to over- or underpayment.
- For non-residents, plan for the flat tax: The flat 30% tax applies on all Peruvian-sourced income, with no sliding scale, which can impact cross-border assignment costs and investments.
Where to Find Official Peruvian Tax Information
For the most current rules, refer directly to the Peruvian Tax Authority (SUNAT) homepage, where official guidelines and forms are published.
In summary, Peru’s system in 2025 uses progressive rates for residents and a flat rate for non-residents, with detailed brackets clearly defining when higher rates apply. Non-domiciled individuals should pay close attention to the 30% flat regime on their Peruvian income. Always double-check your status and source documentation when preparing your tax filings to ensure optimal compliance and to avoid unnecessary liabilities.