Peru and China Resumes Double Taxation Treaty Negotiations
On May 31, 2024, through a statement from the Ministry of Economy and Finance, it was announced that Peru and China will hold the second round of negotiations to sign a treaty to avoid double taxation and prevent tax evasion and avoidance.
As we have previously stated, Double Taxation Agreements are entered into by two or more countries that hold the right to tax a certain income and seek to regulate this situation through rules to avoid double taxation, providing mechanisms for reciprocal collaboration between tax authorities to detect cases of tax evasion. In this regard, in 2023, Peru and China began negotiations to draft a Double Taxation Agreement.
In this regard, the Minister of Economy and Finance reported that the second round of negotiations will take place in November, seeking to boost integration between China and Peru in terms of trade in goods, services, and investment. China has increased its participation in the Peruvian economy, with significant involvement in the mining, energy, and transportation sectors. As we recall, the upcoming inauguration of the first phase of the Chancay mega-port is the result of Peruvian-Chinese business investment, which is expected to boost free trade and new investment.
As always, at Thorne, Echeandía & Lema Abogados, we welcome any questions, comments, or additional clarifications you may have regarding the legal and tax impact of the information contained in this newsletter. If so, please do not hesitate to contact our tax team:
Pilar Santillán Meza
