Digital Services for SUNAT

Digital Services for SUNAT

The relevant regulations indicate that a service provided by a non-resident supplier in Peru to a client domiciled in that country can qualify as a "digital service," provided certain characteristics are met.

The Income Tax Law (IR) and its Regulations state that a "digital service" is one that is offered through the Internet or any similar technology, is essentially automatic, and depends on information technology. The aforementioned Regulations provide a reference list of services that are understood to qualify as "digital services."

Recently, the Tax Administration has issued Report No. 000039-2024-SUNAT/7T0000, which states that certain services are considered "digital services" because they are listed in the Regulations of the IR Law (paragraph b) of article 4°-A). According to this report, this consideration applies even if all the characteristics described in the tax regulations to qualify as a "digital service" are not met. That is, a service that is not essentially automatic (being one of the main characteristics of the mentioned concept) can qualify as a "digital service" if it is listed in the mentioned Regulations. Therefore, according to the Tax Administration, it is not necessary to meet all the characteristics of a "digital service" to qualify as such.

The report from the Tax Administration suggests an interpretation that does not align with the strict sense of the regulation. In this situation, companies, to properly withhold the tax, must now decide whether to follow the criteria set forth in the said report from the Tax Administration or what the Income Tax Law indicates.

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