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<span class="easy-breadcrumb_segment-separator"> » </span> <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"> <span itemscope itemprop="item" itemtype="http://schema.org/Thing" itemid="#2"> <span class="easy-breadcrumb_segment easy-breadcrumb_segment-title" itemprop="name">Peru</span> </span> <meta itemprop="position" content="2" /> </span> </div> </div> </div> </div> </div> </header> </div> <div id="page"> <div id="main"> <div id="left-content"> <div id="content" class="column" role="main"> <a id="main-content"></a> <article class="node-769788 node node-wikifleet view-mode-full view-mode-full clearfix" about="/en/wikifleet/peru-0" typeof="sioc:Item foaf:Document" data-uid="11812" data-contentGroup1="auteur-Daniel-Bland"> <header> <span property="dc:title" content="Peru" class="rdf-meta element-hidden"></span> </header> <header class="group-wiki-header field-group-html5"><div class="field field-name-field-image field-type-image field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><img typeof="foaf:Image" src="https://www.globalfleet.com/sites/default/files/styles/uc_thumbnail/public/peru_flag_2.jpg_0.png?itok=F-N7J0_D" width="35" height="23" alt="" /></div> </div><div class="field field-name-title-field field-type-text field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><h1>Peru</h1> </div> </div><em class="last-update">Last modification: 14 Mar 23</em><div class="wikifleet-navigation"><select class="chapter-selector" name="chapters"><option value="_none">Chapters</option><option value="#group-chapter-one">Chapter 1: Economic and business environment</option><option value="#group-chapter-two">Chapter 2 : Automotive market, segments & sales</option><option value="#group-chapter-three">Chapter 3: Company car market</option><option value="#group-chapter-four">Chapter 4: Taxation & legislation</option><option value="#group-chapter-five">Chapter 5: Car policies</option><option value="#group-chapter-six">Chapter 6: Funding methods</option><option value="#group-chapter-seven">Chapter 7: Fuel</option><option value="#group-chapter-height">Chapter 8 : TCO components</option><option value="#group-chapter-nine">Chapter 9: Safety, insurance and telematics</option><option value="#group-chapter-ten">Chapter 10: Environment</option><option value="#group-chapter-eleven">Chapter 11: Mobility</option><option value="#group-chapter-twelve">Chapter 12: Key trends to watch</option></select></div></header><div class="field field-name-body field-type-text-with-summary field-label-above "> <div class="field-label">Introduction: </div> <div class="field-item even field-item-first field-item-last field-item-0" property="content:encoded"> <p><span style="text-align: left;float: none;">Peru is composed of 25 regions and 1 province*. They are Amazonas, Ancash, Apurimac, Arequipa, Ayacucho, Cajamarca, Callao, Cusco, Huancavelica, Huanuco, Ica, Junin, La Libertad, Lambayeque, Lima, Lima*, Loreto, Madre de Dios, Moquegua, Pasco, Piura, Puno, San Martin, Tacna, Tumbes, and Ucayali</span></p> <p><span style="text-align: left;float: none;">Poverty and unemployment levels have fallen dramatically in the last decade, and today Peru boasts one of the best performing economies in Latin America.</span></p> <p><span style="text-align: left;float: none;">Thank you to contributors to the Peru WikiFleet page: <a href="https://www.globalfleet.com/en/company/bdo-belastingconsulenten" target="_blank">BDO</a>: <a href="https://www.globalfleet.com/en/company/arval" target="_blank">Arval-Relsa</a></span></p> </div> </div> <div class="group-chapter-one-items field-group-accordion field-group-accordion-wrapper effect-none" id="group-chapter-one"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 1: Economic and business environment</a></h3> <div class="field-group-format-wrapper "><div class="field-group-table group_chapter_one_table form-wrapper form-group" id=""><div id="" class="field-group-table group_chapter_one_table "> <table class="field-group-format group_chapter_one_table table table-striped"> <tbody> <tr class=""><th class="field-label">Demographics</th><td class="field-content"><div class="field field-name-field-demographics field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Population 33.9 million people (2022)<br /> <br /> <span style="text-align: left;float: none;">Peruvian emigration began rising in the 1980s due to an economic crisis and a violent internal conflict, but outflows have stabilized in the last few years as economic conditions have improved. Nonetheless, more than 2 million Peruvians have emigrated in the last decade, principally to the US, Spain, and Argentina.</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Capital</th><td class="field-content"><div class="field field-name-field-capital field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Lima<br /> population:<br /> 7.74 million (city)<br /> 10.7 million (urban area)<br /> <br /> (2020)</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Major cities</th><td class="field-content"><div class="field field-name-field-major-cities field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>1. <span style="text-align: left;float: none;">Lima (9.87 million)</span><br /> 2. Arequipa (1.26 million)<br /> 3. Trujillo (<span style="text-align: left;float: none;">850,230)</span><br /> 4. Chiclayo (<span style="text-align: left;float: none;">799,034)</span><br /> 5.Huancayo (<span style="text-align: left;float: none;">659,300)</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Languages</th><td class="field-content"><div class="field field-name-field-languages field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">Spanish (official) 84.1%, Quechua (official) 13%, Aymara (official) 1.7%,</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">GDP</th><td class="field-content"><div class="field field-name-field-gdp field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">US$226 billion (2021)</span><br /> US$6,666 per capita (non adjusted) nominal </p> <p> </p> </div> </div></td> </tr> <tr class=""><th class="field-label">Unemployment rate</th><td class="field-content"><div class="field field-name-field-unemployment-rate field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">8.3% (April 2022)<br /> <br /> Source: Trading Economics</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Main industries</th><td class="field-content"><div class="field field-name-field-main-industries field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas and natural gas liquefaction; fishing and fish processing, cement, glass, textiles, clothing, food processing, beer, soft drinks, rubber, machinery, electrical machinery, chemicals, furniture.<br /> <br /> Agriculture<br /> artichokes, asparagus, avocados, blueberries, coffee, cocoa, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, pineapples, guavas, bananas, apples, lemons, pears, coca, tomatoes, mangoes, barley, medicinal plants, quinoa, palm oil, marigolds, onions, wheat, dry beans; poultry, beef, pork, dairy products; guinea pigs; fish</span><br />  </p> </div> </div></td> </tr> <tr class=""><th class="field-label">Currency</th><td class="field-content"><div class="field field-name-field-currency field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Peruvian Sol<br /> currency code: PEN</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Interest rate</th><td class="field-content"><div class="field field-name-field-interest-rate field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>5.5%<span style="text-align: left;float: none;"> (June 2022)</span></p> <p>Source: Trading Economics</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Fleet Maturity Index (scaling)</th><td class="field-content"><div class="field field-name-field-fleet-maturity field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Approximately 71% of multinational companies in Peru offer company's cars to some of their employees.</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Political key info</th><td class="field-content"><div class="field field-name-field-political-key-info field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">Pedro Pablo Kuczynski Godard won a very narrow presidential runoff election in June 2016. Facing impeachment after evidence surfaced of his involvement in a vote-buying scandal, President Kuczynski offered his resignation on 21 March 2018. Two days later, First Vice President Martin Alberto Vizcarra Cornejo was sworn in as president.</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Inflation</th><td class="field-content"><div class="field field-name-field-inflation field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;float: none;">8.78% (May 2022)<br /> <br /> Source: Trading Economics</span></p> </div> </div></td> </tr> </tbody> </table> </div></div></div></div><div class="group-chapter-two-items field-group-accordion-wrapper effect-none" id="group-chapter-two"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 2 : Automotive market, segments & sales</a></h3> <div class="field-group-format-wrapper "><div class="field-group-table group_chapter_two_table group-chapter-two-table field-group-table form-wrapper form-group" id=""><div id="" class="field-group-table group_chapter_two_table group-chapter-two-table field-group-table"> <table class="field-group-format group_chapter_two_table table table-striped"> <tbody> <tr class=""><th class="field-label">Total Car park</th><td class="field-content"><div class="field field-name-field-total-car-park field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Approximately 2.77 million vehicles (one in 11 inhabitants, est. 2017)</p> <p>Average vehicle age is 13 years</p> <p> </p> </div> </div></td> </tr> <tr class=""><th class="field-label">New vehicle registrations (Cars, LCV, Trucks)</th><td class="field-content"><div class="field field-name-field-new-vehicle-registrations field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>In 2022, a total of 159,814 new light vehicles registrations were reported. (up 1.7% year-over-year), being 44% SUVs, 20% pickups, 15.3% sedans, and 8% hatchbacks.</p> <p>source: AAP (Peru automobile association)<br /> <br /> 2,680 electric vehicles were sold in 2022, being 2,048 HEV, 165 BEV, and 107 PHEV.<br /> <br /> source: SUNARP</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Top 5 brands (total market)</th><td class="field-content"><div class="field field-name-field-top-5-brands-total-market field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>2021 sales</p> <p>1. Toyota (31,005 units)<br /> 2. Hyundai (16,095)<br /> 3. Kia (12,035)<br /> 4. Chevrolet (11,848)<br /> 5. Nissan (8,843)</p> <p>source: Car Industry Analysis</p> <p><span style="text-align: left;float: none;">(AAP)</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Model preference top 5 (total market)</th><td class="field-content"><div class="field field-name-field-model-preference-top field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><ol style="text-align: left;"> <li>Toyota Hilux</li> <li>Kia Rio</li> <li>Toyota Yaris</li> <li>Toyota Etios</li> <li>Hyundai Accent</li> </ol> <p>Source: AhoraSeguros (2018)</p> </div> </div></td> </tr> </tbody> </table> </div></div></div></div><div class="group-chapter-three-items field-group-accordion-wrapper effect-none" id="group-chapter-three"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 3: Company car market</a></h3> <div class="field-group-format-wrapper "><div class="field-group-table group_chapter_three_table group-chapter-three-table field-group-table form-wrapper form-group" id=""><div id="" class="field-group-table group_chapter_three_table group-chapter-three-table field-group-table"> <table class="field-group-format group_chapter_three_table table table-striped"> <tbody> <tr class=""><th class="field-label">Total Fleet Park (company cars)/Fleet penetration in total fleet sales</th><td class="field-content"><div class="field field-name-field-total-fleet-park field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;">553,000 vehicles (approximately 20% of the country's total car park)</span></p> <ul> <li><span style="text-align: left;">Of this amount, about 12,200 vehicles (2% of the corporate car park) entail operational leasing contracts.</span></li> <li><span style="text-align: left;">Most of the country's company cars are for utility purposes, as opposed to benefit cars for executives.  </span></li> </ul> <p><span style="text-align: left;">Source: Arval-Relsa</span><br /> <br /> In Peru, approximately 71% of the multinational companies in the country offer company cars or vehicle benefits for employees, according to a 2020 Global Fleet study done in partnership with Willis Towers Watson.</p> </div> </div></td> </tr> <tr class=""><th class="field-label">Evolution fleet sales (last 5 years)</th><td class="field-content"><div class="field field-name-field-evolution-fleet-sales field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>In 2021, LCV sales rose 51% to 41,420 units from 27,503 (source: OICA)<br /> <br /> 2020: 27,503 units<br /> <span style="text-align: left;float: none;">2019: 40,266 units </span><br style="text-align: left;" /> <span style="text-align: left;float: none;">2018: 36,349 units<br /> 2</span><span style="text-align: left;float: none;">017: 46,718 units</span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Top 5 fleet brands (fleet market)</th><td class="field-content"><div class="field field-name-field-top-5-fleet-brands-fleet field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>National statistics are yet to be acquired.<br /> <br /> <span id="result_box" style="text-align: left;"><span>However, for multinational vehicle leasing group Arval-Relsa<br /> 1. Toyota<br /> 2. Nissan <br /> 3. Renault</span></span></p> </div> </div></td> </tr> <tr class=""><th class="field-label">Fleet Model preference top 5 (fleet market)</th><td class="field-content"><div class="field field-name-field-fleet-model-preference-top field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>National statistics are yet to be acquired.<br style="margin:0px;" /> <br /> <span id="result_box" style="text-align:left;"><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span>However, for multinational vehicle leasing group Arval-Relsa, the most requested models are the Toyota Hilux pickup, Mitsubishi L200 pickup, and Chevrolet </span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span style="text-align: left;"><span>N300 van.</span></span></p> </div> </div></td> </tr> </tbody> </table> </div></div></div></div><div class="group-chapter-four-items field-group-accordion-wrapper effect-none" id="group-chapter-four"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 4: Taxation & legislation</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-taxation-legislation field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><table style="margin:0px;" width="896"> <tbody> <tr> <td colspan="2" width="896"> <p style="text-align:center;margin:0px;"><span><span><b><span style="margin:0px;"><span><span>Perú</span></span></span></b></span></span></p> </td> </tr> <tr> <td colspan="2" width="896"> <p style="margin:0px;"><span><span style="margin:0px;"><span>The basis of Company Car taxation in Perú is reflected in this overview. Different types of taxes are considered here: taxes related to the registration of the vehicle, income taxes and VAT aspects. Expected future developments are also briefly listed, if any.</span></span></span></p> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"><span><b><span style="margin:0px;"><span>Car taxation: Vehicle property tax</span></span></b></span></li> </ol> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Taxable event</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><b><span style="margin:0px;"><span>VEHICLES OWNERSHIP.</span></span></b></span></p> <p style="margin:0px;"><span><b><span style="margin:0px;"><span>Vehicles:</span></span></b><span style="margin:0px;"><span> cars, vans, station wagons, trucks and buses not older than three years (Period counted from the first registration in the Vehicle Property Registry)</span></span></span></p> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Taxable person</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><b><span style="margin:0px;"><span>OWNER </span></span></b><span style="margin:0px;"><span>(individual or entity)<b> </b>on 1 January of every taxable year<b> </b></span></span></span></p> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Tax due</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>1% x the Vehicle’s original purchase value, import value or value registered on books</span></span></span></p> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Taxable period</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><b><span style="margin:0px;"><span>Annual</span></span></b> </span></p> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"><span><b><span style="margin:0px;"><span>Income tax</span></span></b></span></li> </ol> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Income tax for car industry</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Taxable Income x 29.5%</span></span></span></p> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Deduction of car expenses (rental, leasing, leasing, fuel, lubricants, maintenance, insurance, repair, amortization, etc.)</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Permitted when they are used in permanent way for the development of the business.</span></span></span></p> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Accelerated asset amortization – Cars acquired by Leasing</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Accelerated amortization on the leasing contract period, under special requisites. </span></span></span></p> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"><span><b><span style="margin:0px;"><span>VAT</span></span></b></span></li> </ol> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>VAT applicable</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>(Car import/ car sale/car lease value) x 18%</span></span></span></p> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Deduction</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>VAT payable = Output VAT – Input VAT</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>Enterprises recognized as general taxpayers are entitled to use the input tax to credit against the output tax.</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>Output VAT = sales value*applicable tax rate</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>Input VAT = purchase value*applicable tax rate</span></span></span></p> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Leasing</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Taxable as financial service: Leasing interests x 18%</span></span></span></p> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"><span><b><span style="margin:0px;"><span>Excise tax</span></span></b></span></li> </ol> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Excise tax applicable </span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Vehicles import/ vehicles sale (by importer), included in the following NANDINA Tariff item numbers:</span></span></span></p> <table style="margin:0px;"> <tbody> <tr> <td width="189"> <p style="margin:0px;"><span><span><span style="margin:0px;"><span><span>8703.10.00.00<br /> 8703.31.10.00/ 8703.90.00.90</span></span></span></span></span></p> <p style="margin:0px;"><span><span><span style="margin:0px;"><span><span>8704.21.10.10- 8704.31.10.10</span></span></span></span></span></p> <p style="margin:0px;"><span><span><span style="margin:0px;"><span><span>8704.21.10.90- 8704.21.90.00</span></span></span></span></span></p> <p style="margin:0px;"><span><span><span style="margin:0px;"><span><span>8704.31.10.90- 8704.31.90.00</span></span></span></span></span></p> </td> <td width="217"> <p style="margin:0px;"><span><span><span style="margin:0px;"><span><span>Import: value+duty X 10%</span></span></span></span></span></p> <p style="margin:0px;"><span><span><span style="margin:0px;"><span>Car sale: value x 10%</span></span></span></span></p> </td> </tr> <tr> <td width="189"> <p style="margin:0px;"><span><span style="margin:0px;"><span>8701.20.00.00</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>8702.10.10.00/ 8702.90.99.90</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>8703.10.00.00/ 8703.90.00.90</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>8706.00.10.00/ 8706.00.90.00</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>8704.21.00.10/ 8704.90.00.00</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>8707.10.00.00/ 8707.90.90.00</span></span></span></p> </td> <td width="217"> <p style="margin:0px;"><span><span style="margin:0px;"><span><span>Import: value+duty X 30%</span></span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>Car sale: value x 30%</span></span></span></p> </td> </tr> </tbody> </table> <p style="margin:0px;"> </p> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"><span><b><span style="margin:0px;"><span>Company Car</span></span></b></span></li> </ol> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>VAT Due on private use of company cars</span></span></span></li> </ul> </td> <td width="529"> <p style="text-align:center;margin:0px;"><span><span style="margin:0px;"><span>N/A</span></span></span></p> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Company car </span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Limited deduction for cars of categories A2, A3, A4, B1.3 and B1.4, assigned to use on Management, Direction, Representation or administration activities:</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span style="margin:0px;">- </span></span><span style="margin:0px;"><span>Limited number of vehicles depending on annual income. </span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span style="margin:0px;">- </span></span><span style="margin:0px;"><span>Non permitted deduction when vehicle purchase value is over 30 Tax Units (2018 Tax Unit = PEN 4150)</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span>Company car provided for private use of employee is taxable for employee, as part of work income.</span></span></span></p> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"><span><b><span style="margin:0px;"><span>Income Taxes – drivers’ personal taxation</span></span></b></span></li> </ol> </td> </tr> <tr> <td width="366"> <ul> <li style="margin:0px;"><span><span style="margin:0px;"><span>Private car in the personal tax return</span></span></span></li> </ul> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span style="margin:0px;">- </span></span><span style="margin:0px;"><span>Expenses deductible by driver if he assumes the expenses, and driver’s income qualifies as business income.</span></span></span></p> <p style="margin:0px;"><span><span style="margin:0px;"><span style="margin:0px;">- </span></span><span style="margin:0px;"><span>Expenses not deductible on driver´s personal tax return if cost are assumed directly by Company. Duly supported, deduction is allowed to the Company (with limits settled on point 5).</span></span></span></p> </td> </tr> <tr> <td colspan="2" width="896"> <ol> <li style="margin:0px;"><span><b><span style="margin:0px;"><span>Import duties</span></span></b></span></li> </ol> </td> </tr> <tr> <td width="366"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Vehicles subject to duties </span></span></span></p> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Included on NANDINA tariff item Code 87.03 “Passenger cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons ( "break" or "station wagon") and racing”</span></span></span></p> </td> </tr> <tr> <td width="366"> <p style="margin:0px;"><span><span style="margin:0px;"><span>Tax application</span></span></span></p> </td> <td width="529"> <p style="margin:0px;"><span><span style="margin:0px;"><span>CIF x 6%</span></span></span></p> </td> </tr> </tbody> </table> <p><br /> Source: BDO (2018)<br /> <br /> Meanwhile, owing to a 10% increase of the ISC selective tax on consumption determined by the ministry of economy and finance, the price of new passenger vehicles operating on gasoline in Peru is seen increasing some 12% on into the second semester of 2018, something that will affect upcoming fleet renewal decisions. Source: Peru's automotive association AAP.</p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/769788" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-five-items field-group-accordion field-group-accordion-wrapper effect-none" id="group-chapter-five"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 5: Car policies</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-car-policies field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Corporate cars in Peru pertain more to vehicles used for utility purposes as opposed to benefit cars for company executives.<br /> <br /> Utility vehicles, or those used to support company operations, commonly involve pickups and vans. They are mostly used by on-site workers, technicians, construction supervisors, among others.<br /> <br /> Benefit vehicles such as sedans, hatchbacks, and SUVs are mainly used by salespeople, managers, directors, and other executives. Usually, the higher the job position, the more exclusive the vehicle is. </p> <p>Sometimes, the vehicle could be used for personal use but it really depends on the policy of each client. To monitor whether the driver is using the vehicle for business or personal use, tools such as GPS can be used. To better manage fleets, it is ideal for leasing companies to have a central communication center which directs phone calls to the appropriate department needed.   </p> <p><span style="text-align: left;">For <a href="https://www.globalfleet.com/en/company/arval" target="_blank">Arval-Resla</a>, </span></p> <ul> <li>T<span style="text-align: left;">raffic accidents are </span><span style="text-align: left;">handled directly with insurance companies</span></li> <li><span style="text-align: left;">In the case of vehicle maintenance or if the car breaks down, customers contact the central office to request service. </span></li> <li>Traffic ticket fines, however, are managed internally. Once recieved, customers are informed. </li> </ul> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/769788" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-six-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-six"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 6: Funding methods</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-funding-methods field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Approximately half of the cars in Peru are bought in cash while the rest are acquired through bank loans, special financing or leasing. </p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/769788" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-seven-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-seven"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 7: Fuel</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-fuel field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>3 May, 2021<br /> Average gasoline price per liter: US$1.00 (world average is US$1.15)<br /> Average diesel price per liter: US$0.94 (world average is US$1.02)</p> <p>September, 2020<br /> Average electricity price per kWh Households: US$0.19 (world average is US$0.14)<br /> Average electricity price per kWh Business: US$0.13 (world average is US$0.12)</p> <p style="text-align: left;">Source: https://www.globalpetrolprices.com/gasoline_prices/</p> <p style="text-align: left;"><span> </span></p> <ul> <li style="text-align: left;margin: 0px 0px 10.66px;">Gasoline in Peru is mixed with up to 7.8% ethanol.</li> <li style="text-align: left;margin: 0px 0px 10.66px;">Pushing for the import of cars using natural gas by reducing ISC tax to 10% from 30%.</li> <li style="text-align: left;margin: 0px 0px 10.66px;"><span>To push for the reduction of gasoline vehicles, there is 0% ISC tax on electric vehicles.</span></li> </ul> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/769788" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-height-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-height"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 8 : TCO components</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-tco-components field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p>Traveling by personal car to and from work in Lima costs an average of 238 Peruvian sols (US$73) per week, while using other means of transport cost 40 sols on average, nearly five times less. <span style="text-align:left;"><span><span style="float:none;"><span><span><span><span><span><span><span><span><span><span><span><span><span><span>The former (private car) </span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span style="text-align:left;"><span><span style="float:none;"><span><span><span><span><span><span><span><span><span><span><span><span><span><span>includes the cost of maintenance, insurance, fuel, parking, etc.</span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span> </p> <p>T<span style="text-align: left;" title="Según el informe, es el tráfico una de las causas de que viajar en auto propio sea tan costoso.">raffic is one of the reasons why traveling in your own car can get expensive. Besides fuel consumption increasing every time you sit in a traffic jam, road congestion increases wear and tear on vehicle parts. This, in turn, results in more maintenance and a shorter life for your vehicle. </span></p> <p><span style="text-align: left;" title="Según el informe, es el tráfico una de las causas de que viajar en auto propio sea tan costoso.">Average weekly public transportation cost in Lima<br /> minibus: 30 sols<br /> bus: 39 sols<br /> motorcyle: 55 sols<br /> taxi: 57 sols<br /> mototaxi: 66 sols</span><br /> <br /> <span style="text-align: left;" title="El estudio ‘Tráfico y Tendencias de la Movilidad Urbana en los Limeños’ realizado por la Escuela de Postgrado de la Universidad del Pacífico y la consultora Marketwin, ha calculado lo que debe invertir cada usuario y se compara con los otros medios de transporte;">Source: Study carried out by the Pacifico University graduate school and consultancy firm Marketwin called "</span>Tráfico y Tendencias de la Movilidad Urbana en los Limeños" (Traffic and tendencies of Urban Mobility in Lima). </p> <p style="text-align: left;"> </p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/769788" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-nine-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-nine"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 9: Safety, insurance and telematics</a></h3> <div class="field-group-format-wrapper group-chapter-nine field-group-accordion-item"><div class="field field-name-field-safety-insurance-and-telem field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><strong>Safety</strong><br /> <br /> Safety regulation is not very strict in Peru. According to the transport and communication ministry, among the features needed on cars are very basic (e.g. bumpers, windows, and brakes).</p> <p>Most robbed car brands</p> <ul> <li>Toyota</li> <li>Nissan</li> <li>Hyundai</li> <li>Kia</li> <li>Chevrolet</li> <li>Volkswagen </li> </ul> <p><strong>Insurance</strong><br /> <br /> Approximatly 23% of the cars in Peru have insured, and about 70% of drivers have the SOAT obligatory insurance for bodily injury</p> <p><span style="text-align: left;float: none;">SOAT covers </span>all persons who are victims of a traffic accident (driver, vehicle occupants and pedestrians). It is very <span style="text-align: left;float: none;">complete as there is no limit as to the number of victims in an accident. However, there are various types of vehicle insurance. While getting protection which includes bodily injury, collision, and theft can give you peace of mind, opening up a policy for only bodily injury and protection only in the case of a total loss could pose some high risks.</span></p> <p><span style="text-align: left;float: none;">Cheapest models to insure:</span></p> <ul> <li><span><span><span>Suzuki Alto 800</span></span></span></li> <li><span><span><span>Chery New QQ</span></span></span></li> <li><span><span><span>Chevrolet Spark</span></span></span></li> <li><span><span><span>Volkswagen UP</span></span></span></li> <li><span><span><span>KIA Picanto</span></span></span></li> <li><span><span><span>JAC J4</span></span></span></li> <li><span><span><span>Hyundai i10</span></span></span></li> <li><span><span><span>MG 3.</span></span></span></li> </ul> <p><strong>Telematics</strong></p> <p><span style="text-align: left;">All vehicles in Peru in the road transport and distribution industry are required by law to report their GPS location to the SUTRAN monitoring and management center</span><span style="text-align: left;">. The law is mostly aimed at preventing heavy vehicles from exceeding national speed limits and helping to reduce the high incidents of road accidents in Peru. </span></p> <p>C<span style="text-align: left;">ompanies that provide fleet control software are required to transmit the following vehicle data to SUTRAN.</span></p> <ul> <li><span style="text-align: left;">Vehicle Registration</span></li> <li><span style="text-align: left;">Routes Traveled</span></li> <li><span style="text-align: left;">Speed</span></li> <li><span style="text-align: left;">Geolocation (Latitude and Longitude)  </span></li> </ul> <p><span style="text-align: left;" title="La compañía Tracklink, especializada en seguridad vial, realizó por primera vez en el Perú el estudio de "Estilo de Conducción" y tuvo como resultado que el 82% de peruanos manejan sus vehículos por debajo del estándar mínimo de buena conducción. ">Approximately 82% </span><span style="text-align: left;" title="La compañía Tracklink, especializada en seguridad vial, realizó por primera vez en el Perú el estudio de "Estilo de Conducción" y tuvo como resultado que el 82% de peruanos manejan sus vehículos por debajo del estándar mínimo de buena conducción. ">of Peruvians drive their vehicles below the minimum standard of what is considered to be good driving, according to a study called "Driving Style" carried out by road safety company Tracklink. </span></p> <p><span style="text-align: left;" title="Dicho estándar mínimo de buena conducción considera tener una frecuencia de accidentes de 9%, que es el máximo porcentaje "aceptable" en la Unión Europea pero en el caso del Perú la frecuencia de accidentes está por encima de 40%. ">This minimum standard of good driving considers having a 9% frequency of accidents, which is the maximum percentage "acceptable" in the European Union. In the case of Peru, this number is above 40%. Moreover, on a 0-100 scale with 100 being best, 82% of drivers in Peru failed to reach the 55-point minimum considered to be acceptable driving. </span><span style="text-align: left;" title="La tecnología telemática utilizada para analizar los estilos de conducción tanto en Perú, la Unión Europea, América del Norte y Sudáfrica, brinda una escala de calificación del 0 al 100, donde cero es la menor calificación, 100 la mayor y 55 es considerado el mínimo"> The average score in Peru was 38.3.</span></p> <p> </p> <p> </p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/769788" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-ten-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-ten"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 10: Environment</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-environment field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><div class="field field-name-field-image field-type-image field-label-hidden" style="text-align: left;"> <div class="field-item even field-item-first field-item-last field-item-0"> <div style="text-align: left;"> <p><span><span><span>Tax incentives related to the purchase and circulation of vehicles as well as tollbooth and parking fees could be more robust and are still in the works.</span></span></span></p> <p><span>However, since April 2018, Peru's environment ministry has set a Euro IV standard for imported vehicles, meaning that they must have modern emission control systems that reduce the emission of harmful gases into the atmosphere. </span>Moreover, to jump-start hybrid and electric vehicle (EV) sales in 2019, the ministry of energy and mining will award bonuses to individuals or companies acquiring these types of vehicles. The ministry of economy and finance has also passed a decree which eliminates the ISC excise tax for those renewing their car parks with hybrids or EVs.</p> </div> <div style="text-align: left;"> <br /> According to local reports, about 90% of Peruvians are interested in buying these types of cars. However, neither the commercial offer of EVs nor the necessary infrastructure for these types of vehicles is sufficient enough to really take advantage of tax breaks. Not only until 2022 or later will we see automakers really start bringing EVs into the market. Initially, they will be focusing on the luxury market, corporate cars, and passenger transport.</div> <div style="text-align: left;"><br /> Part of the government’s 2019-30 national competitiveness and productivity plan, the regulations set subsequent electromobility milestones aimed at decentralizing pilot projects by 2021, setting technical standards for charging stations by 2025, and plans to have electric buses operating in Lima, Arequipa and Trujillo by 2030.<br /> <br /> <strong>Electric Vehicles</strong></div> <div style="text-align: left;"><br /> The sale of electrified vehicles (BEV, HEV, and PHEV) reached 1,455 units in 2021, up 160% year-over-year. This still only represents 1% of the 157,100 vehicles sold in the country, according to local automotive association AAP. Although Peru still imposes an 18% tax on new vehicles, it is considering a reduction of import tax on EVs. This decision should be made by March 2022. <br /> <br /> If passed, Peru would be following in the footsteps of neighboring Bolivia. The country eliminated taxes on BEVs and HEVs in July 2021, and this includes taxes on the components required to assemble them. In<span> the meantime, companies linked to the local energy sector are seeking long-term regulatory changes and public-private partnerships aimed at harmonizing the basic fundamentals of the industry, including aspects such as developing a </span>standard connection for vehicles wanting to recharge on the <span>electricity grid.</span></div> </div> </div> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/769788" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-eleven-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-eleven"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 11: Mobility</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-mobility field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span style="text-align: left;" title="Según estimaciones del Foro Mundial de la Bicicleta, el Perú pierde el 5,5% del PBI debido a sus problemas de movilidad: 1,5% en accidentes, 1,5% en salud, 1,5% en tiempo perdido y 1%">Peru loses 5.5% of GDP due to mobility problems: 1.5% in accidents, 1.5% in health, 1.5% in lost time and 1% on fuel.</span></p> <ul> <li><span style="text-align: left;float: none;">In Lima, about 16% of its residents use their own cars to get to and from work. </span></li> <li>A<span style="text-align: left;" title="Según el observatorio ciudadano Lima Cómo Vamos, el 57% de limeños pierde más de dos horas al día transportándose ida y vuelta desde sus hogares a sus centros de trabajo.">pproximately 57% of residents in Lima spend more than two hours a day traveling back and forth to work. </span></li> <li><span style="text-align: left;" title="Tal es así que el 8% declara haberse mudado cerca a su trabajo o lugar de estudio para así reducir el tiempo y costo de movilizarse">As such, 8% of the residents in the city have moved closer to their work or place of study to reduce the time and cost of commuting.</span></li> </ul> <p style="text-align: left;">To resolve traffic congestion, one thing Peru is trying to do is stimulate the usage of bike sharing systems, something that is lacking in the country.</p> <p style="text-align: left;"><span style="text-align: left;" title="Em fevereiro foi firmado em Lima, o pacto UrGente Pedal, un compromiso para contribuir con la movilidad sostenible, a través de la promoción del uso de la bicicleta como medio de transporte para trabajadores, clientes o proveedores. ">In February 2017, the Urgente Pedal (Urgent Pedal) pact was signed in Lima, a commitment to contribute to sustainable mobility by promoting the use of bicycles for workers, customers and suppliers. Within one week after the launch of the proposal, nine </span><span style="text-align: left;" title="Solo en la primera semana desde el lanzamiento de la propuesta, nueve entidades y grupos empresariales han firmado el pacto: el Grupo El Comercio, la Pontificia Universidad Católica del Perú (PUCP), Rímac Seguros, Bélgica Edificaciones, Chehade Abogados, Cooperacción, Centro Labor">entities and business groups signed the pact.</span></p> <p style="text-align: left;">However, according to to a study on traffic in the metropolitan region of Lima carried out by consultancy company Marketwin in September 2017, only 2% of the population in the city would be willing to replace their car with a bicycle or non-motorized vehicle.</p> <p> </p> <p> </p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a href="/en/user/login?destination=node/769788" class="btn login-link">Login</a> <span>or</span> <a href="/en/user/register" class="btn register-link">Create an account</a></div></div></div></div><div class="group-chapter-twelve-items field-group-accordion field-group-accordion-wrapper effect-bounceslide" id="group-chapter-twelve"><h3 class="field-group-format-toggler accordion-item"><a href="#">Chapter 12: Key trends to watch</a></h3> <div class="field-group-format-wrapper "><div class="field field-name-field-key-trends-to-watch field-type-text-long field-label-hidden "> <div class="field-item even field-item-first field-item-last field-item-0"><p><span id="result_box" style="text-align: left;"><span>There has been a fall in new gasoline driven car sales due to the rise in the selective consumption tax ISC to 10% from 0%.  However, there has been an increase in the imports of used cars operating on natural gas due to the reduction of ISC to 10% from 30%. </span></span></p> </div> </div><div class="contribute-links"><span class="label">To suggest an update:</span><div class="links"><a 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