Food industries

It allows projects with long pre-operational periods to recover the IGV on investments in goods, services, construction contracts, and other expenses. This facilitates company liquidity and improves its financial structure.

Law No. 31661: Provides temporary flexibility regarding the amount of investment required to benefit from this regime.

Applicable to:

• Natural or legal persons engaged in crop cultivation and/or livestock breeding.
• Natural or legal persons involved in agro-industrial activities related to crops and/or livestock, provided these activities take place outside the province of Lima and the Constitutional Province of Callao. The law does not apply to agro-industrial activities involving wheat, tobacco, oilseeds, oils, and beer.
• Agricultural producers, excluding those organized in producer associations, as long as each individual producer does not exceed 5 hectares of production.

Income tax will have a special treatment, according to:

• Net Income up to 1,700 UIT: Taxable Years 2021-2030 (15 %) / 2031 onwards (General Regime).
• Net Income over 1,700 UIT: Taxable Years 2023-2024 (20 %) / Taxable Years 2025-2027 (25 %) / 2028 onwards (General Regime).

Agricultural companies are allowed to depreciate 20% per year on investments in hydraulic infrastructure and irrigation works.

Companies with income not exceeding 1,700 UIT are entitled to a tax credit of 10 % on the reinvestment of up to 70 % of their profits.

Income tax exemption:
- Income tax exemption for certain Amazonian producers. 
- Taxpayers in the Amazon region who primarily engage in agricultural activities and/or the transformation or processing of products classified as native and/or alternative crops are exempt from income tax.
- The following products are considered native and/or alternative crops: yucca, soybean, arracacha, uncucha, urena, palm heart, palmito, pijuayo palmito, pijuayo, aguaje, anona, caimito, carambola, cocona, guanábano, guayabo, marañón, pomarosa, taperibá, tangerine, grapefruit, zapote, camu camu, uña de gato, achiote, rubber, pineapple, sesame, chestnut, jute and barbasco. Pursuant to Article 1 of Supreme Decree No. 074-2000-EF, published on 07/21/2000, rough cotton, curcuma, guarana, macadamia and pepper are included in the list of products qualified as native and/or alternative crops, as referred to in this paragraph.

Applicable to natural or legal persons with administrative rights and current sanitary authorization to conduct aquaculture activities, in the following productive categories: Aquaculture of Limited Resources (AREL), Aquaculture of Micro and Small Enterprises (AMYPE) and Aquaculture of Medium and Large Enterprises (AMYGE), at national level, which must comply with all their corresponding tax and sanitary obligations.
The law also applies to those who carry out industrial processing (freezing, canning or curing process) for preservation and commercialization purposes.
A 15 % income tax rate applies until the year 2032 for individuals or entities whose annual income is less than 1,700 UIT. For income exceeding 1,700 UIT, the tax rate ranges from 15 % to 25 % during the same period.
For income tax purposes, agents involved in aquaculture activities can apply an annual depreciation rate of 20% on investments in aquaculture infrastructure and related equipment until December 31, 2031.
Early recovery of VAT is available on capital goods, inputs, services, and contracts incurred during the pre-operational stage of aquaculture activities.
Tax reimbursement is available for the general sales tax on acquisitions and imports of goods and inputs incurred during the preoperative stage of aquaculture activities.