Within the framework of a corporate reorganization, the company sold shares of 3 Peruvian companies.
Our tax advice was focused on the procedure for recovering the invested capital. This procedure must be followed before the Tax Administration.
In Peru, when a non-domiciled entity (such as our client) wishes to dispose of shares of a Company incorporated in the country, it must previously certify the cost of such shares.
In this way, the Tax Administration recognizes the cost of the operation for the purposes of the liquidation of the income tax in Peru by the seller. If this procedure is not carried out and it is carried out in an inappropriate manner, the cost recognized for the operation will be zero.
In this context, our team was in charge of the analysis, operation by operation, that gave rise to the cost of each share to be disposed of. For this, it is necessary to point out that each operation must be duly banked, supported by documentation of a certain date, among other requirements demanded by the standard.
It should be noted that, once the application is submitted, the Tax Administration evaluates each document submitted and initiates a series of requirements related to the support of the requested cost. At this point, it is necessary to point out that according to the tax norm; the maximum term that the Tax Administration has on the submitted request is 30 business days.
In case there is no pronouncement within the aforementioned period, positive administrative silence operates. In other words, the request is understood to be approved in the terms required by the taxpayer.
Given the foregoing, it is usual that the information and/or documentation requirements processed by the Tax Administration, in this type of procedure, are very short and therein lies the complexity of the procedure since if the information required in the required conditions; the request becomes denied.
Now, in the present case, our team successfully carried out the recovery of invested capital with respect to 3 companies incorporated in the country; being that the Tax Administration in the 3 cases recognized 100% of the amounts requested.
