Prevention of Tax Treaty Abuse – Third Peer Review Report on Treaty Shopping

Peru

A. Progress in the implementation of the minimum standard

Peru has eight tax agreements in force, as reported in its response to the Peer Review questionnaire, including the Decision 578 of the Andean Community Commission (Decision 578) for the members of the Andean Community (the Andean Community Agreement).1

Peru signed the MLI in 2018, listing its non-compliant bilateral agreements.

Peru is implementing the minimum standard through the inclusion of the preamble statement and the PPT.2

The agreements that will be modified by the MLI will come into compliance with the minimum standard once the provisions of the MLI take effect.

Peru indicated in its response to the Peer Review questionnaire that the Andean Community Agreement has not been listed under the MLI as it is a decision of the Andean Community Commission and that it will renegotiate the agreement with its treaty partners.3

B. Implementation issues

Peru’s listed agreements under the MLI will start to be compliant after Peru’s ratification of the MLI. Peru is encouraged to ratify the MLI as soon as possible.

Summary of the jurisdiction response – Peru

 

	Treaty partners	Compliance with the standard	If compliant, the alternative implemented	Signature of a complying instrument	The alternative implemented through the complying instrument (if not the MLI)	Comments
1	Bolivia*	No	N/A	No	N/A	Currently renegotiating Decision 578
2	Brazil	No	N/A	Yes	N/A
3	Canada	No	N/A	Yes	N/A
4	Chile	No	N/A	Yes	N/A
5	Colombia	No	N/A	No	N/A	Currently renegotiating Decision 578
6	Ecuador*	No	N/A	No	N/A	Currently renegotiating Decision 578
7	Korea	No	N/A	Yes	N/A
8	Mexico	No	N/A	Yes	N/A
9	Portugal	No	N/A	Yes	N/A
10	Switzerland	No	N/A	Yes	N/A