In December 2021, Crypto Asset Marketing Framework was introduced in Peruvian Congress with an objective to lay down rules for crypto circulation and crypto tax in Peru. The Central Bank of Peru has also joined hands with India, Singapore and Hong Kong to develop a Central Bank Digital Currency (CBDC) in order to keep pace with the world’s advancements into use of digital currencies.
Around 3.7% of the population in Peru owns cryptocurrency and the country saw the largest increase in transaction by Blockchain wallets globally with an increase of 18.3%.
Do you have to pay crypto tax in Peru?
Yes, you have to pay a crypto tax in Peru. Although, crypto currency is not being taxed as securities, instead they are being taxed on the basis of income they generate. Therefore, the profits made on sale of crypto currency will be liable to taxation.
When do you have to pay tax on crypto in Peru?
Crypto currency is taxable in Peru on the basis of gains it generates. Taxes on income are bifurcated by tax units in Peru, where 1 tax unit = 4950 PEN (Peruvian Soles). So, if the taxes need to be paid or not depends upon the profits clearing the tax brackets.
What crypto transactions are taxable in Peru?
Crypto regulations are still very uncertain in Peru. Therefore, as of now, only profitable transactions on crypto are taxable, that is, only selling of crypto is taxable in Peru.
What are the Crypto Tax Rates in Peru?
Crypto gains are taxable on the basis of rates mentioned in the table below:
| Bracket | Reference in tax units * | Tax rate (%) |
| First | Up to 5 | 8 |
| Second | 5 to 20 | 14 |
| Third | 20 to 35 | 17 |
| Fourth | 35 to 45 | 20 |
| Fifth | Over 45 | 30 |
Source: https://taxsummaries.pwc.com/peru/individual/taxes-on-personal-income
Peru Income Tax Brackets (2023)
INDIVIDUAL INCOME TAX BRACKETS IN PERU
| Bracket | Reference in tax units * | Tax rate (%) |
| First | Up to 5 | 8 |
| Second | 5 to 20 | 14 |
| Third | 20 to 35 | 17 |
| Fourth | 35 to 45 | 20 |
| Fifth | Over 45 | 30 |
Source: https://taxsummaries.pwc.com/peru/individual/taxes-on-personal-income
Firms in Peru are treated as residents who are supposed to pay corporate tax on their income. Corporate Income Tax in Peru is levied at a rate of 29.5% with different deductions and exceptions.
Peru Capital Gain Tax Rates (2023)
Capital Gains are taxed at a constant rate of 5% for sale of physical and immovable property.
How is Tax Calculated on Cryptocurrency in Peru?
Crypto is taxed in Peru on the income it generates. Therefore, the excess amount received on sale of crypto is taxed. While the selling price of crypto is the price you sold it at, determining the cost price is a bit difficult if you purchased the coins you sold on different occasions and at different prices. In order to determine your cost price, two methods: FIFO (First In First Out) and ACB (Average Costs Basis) are used.
According to FIFO Method, you sell your oldest acquired coin first and cost is calculated according to the respective prices at which the coin was bought. Whereas, in ACB, time of buying doesnt matter and average cost is taken into account.
Let’s take an example,
Say you bought 2 BTC for 20,000 PEN in 2020 and 4 BTC for 60,000 PEN in 2021. Then you sold 4 BTC in 2022 for 1,00,000 PEN:
- FIFO METHOD
You sell 2 BTC from 2020 and 2 BTC from 2021. So cost price is:
= 20,000 + (2/4)*60,000
= 50,000 PEN
Profit = 1,00,000 – 50,000
= 50,000
Here, taxes are levied on 50,000 PEN.
- ACB METHOD:
All coins are of the same denomination. Therefore, cost price for one coin:
= (20,000 + 60,000)/6
= 13,333 PEN
So, cost price of 4 coins:
= 53,333 PEN
Profit = 1,00,000 – 53,333
= 46,666
Here, taxes are levied on 46,666 PEN.
Is there any Crypto Tax Free in Peru?
Crypto Regulations in Peru are still not absolutely solid and in the process of taking ground. Taxable and Non taxable crypto gains are still ambiguous as there are no different set of rules or exceptions placed for crypto and they are taxed as income only.
Crypto Tax in Peru – FAQs
Do you have to pay tax when you buy crypto in Peru?
No, buying crypto is not liable to any taxation in Peru.
Do you have to pay tax when you sell crypto in Peru?
Yes, sale of crypto is taxed at varying rates from 8% to 30% as mentioned in this article earlier.
Do you have to pay tax when transferring crypto in Peru?
No, transferring cryptocurrency between wallets is not taxable. A transfer fee might be charged, but that is solely based on the provider/merchant being used.
Do you have to pay tax when spending crypto in Peru?
While tax on paying for goods and services in crypto is still a gray area, Peru has VAT and Consumer taxes that might be levied on such transactions.
Is swapping crypto taxable?
It is still uncertain if swapping crypto is taxable in Peru or not.
How much tax on crypto gains in Peru?
Bracket Reference in tax units * Tax rate (%) First Up to 5 8 Second 5 to 20 14 Third 20 to 35 17 Fourth 35 to 45 20 Fifth Over 45 30
How do I avoid capital gains tax on crypto in Peru?
Taxes on crypto can be avoided in Peru by offsetting the losses or doing charitable transactions via crypto.
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.