Peru and the United Kingdom Conclude Negotiations on the Double Taxation
Agreement On May 17, 2024, the Ministry of Economy and Finance announced the completion of negotiations conducted in recent years between His Majesty’s Revenue and Customs (HMRC) and the Ministry of Economy and Finance of Peru for the signing of the Double Taxation Agreement (DTA).
DTAs are international tax treaties agreed upon between sovereign states with the aim of preventing a specific good or income from being taxed with the same tax in different countries.
The agreements include rules for avoiding double taxation, mechanisms for collaboration between tax authorities to detect cases of tax evasion, and other provisions. It is worth recalling that, several years ago, Peru and the United Kingdom began negotiations to prepare and sign the aforementioned DTA, which seeks, among other things, to eliminate tax barriers that disfavor and discourage trade and investment between the countries, establish the scope for both countries regarding cross-border income, prevent tax avoidance and evasion, and provide relief from double taxation.
In this regard, the Peru-UK DTA is expected to be signed in the coming months. It will be applicable in both countries until the respective procedures for its entry into force have been completed.
Finally, we remind you that to date, the United Kingdom has signed other DTAs with several Latin American countries, including Argentina, Bolivia, Brazil, Chile, Colombia, Mexico, Panama, and Venezuela, among others.
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
