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This chapter provides an overview of Peru’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, international tax transparency, double taxation treaties, VAT regulation, foreign source income and other investor considerations. This chapter contains an interview with Humberto Astete Miranda, Tax Partner, EY Perú.

Although Peru is increasingly focusing resources on education, there is some way to go to catch up to its regional peers. However, there are encouraging signs that the necessary changes are being made, including more public investment via a centralised spending framework, revised regulations, take-up of technology and other innovations. The dynamic private sector looks set to capitalise on increasing demand for high-quality education among the burgeoning middle class. Nevertheless, the sector needs to overcome a divide between rural and urban education provision, opposition to some reforms from educators and a significant infrastructure gap. In terms of health, Peru has made impressive strides towards achieving its aim of universal health coverage by 2021. With the launch of the e-health programme, the government has shown itself to be receptive to utilising emergent technologies to expand and improve provision nationwide. Nevertheless, the sector faces persistent shortages of doctors, and inequalities in services between rural and urban areas. This chapter includes interviews with Jorge Yzusqui, General Manager, Innova Schools; and Juan Carlos Salem Suito, General Manager, SANNA.

Since the market entry of new operators in 2014, competition, investment and consumption have risen, boosting the dynamism of the telecommunications sector. These positive trends continued into 2017 as the regulatory framework was strengthened, with a particular focus on driving competition, reducing costs and protecting the interests of consumers. In 2017 Peru’s ICT sector represented 2.6% of GDP, according to industry consulting firm Ovum. Political instability and an unfavourable regulatory environment are the main factors affecting the country’s competitiveness in terms of ICT adoption, according to the World Economic Forum. Furthermore, there is plenty of room for improvement regarding the country’s online security measures. With the bold expansion of internet access to rural areas and the renewed focus on strengthening cybersecurity measures, the Peruvian ICT sector is starting to establish itself as an emerging market in the region. This chapter features an interview with Rafael Muente Schwarz, President, OSIPTEL.

Peru’s tourism sector is ranked 46th out of 185, in terms of relative importance of travel and tourism’s total contribution to GDP, according to the World Tourism & Travel Council’s “Economic Impact 2018 Peru” report. According to the same report, in 2017 Peru’s travel and tourism sector was directly worth PEN26.5bn ($8.2bn), or 3.8% of GDP, a figure which is forecast to rise by 4.5% in 2018, and expand by an average of 4.7% per year over 2018-28 to reach PEN43.7bn ($13.5bn), or 4.2% of total GDP by 2028. The sector’s total contribution — direct plus indirect — was PEN68bn ($20.9bn) in 2017, a considerable 9.8% of GDP. This is forecast to rise by 4.7% in 2018 and 4.5% per year to PEN110.8bn ($34bn) and 10.6% of GDP in 2028, highlighting the continued importance of the tourism sector to the overall Peruvian economy. This chapter includes interviews with Virgilio Martínez, Head Chef and Owner, Central; and Jorge Melero, CEO, Hoteles Libertador.

Peru’s agriculture sector has enjoyed consecutive annual expansions in recent times, with agricultural GDP growing at an average rate of 3.3% per year between 2000 and 2015 – above the regional average for Latin America, according to a March 2018 report by the World Bank titled “Gaining momentum in Peruvian agriculture: Opportunities to increase productivity and enhance competitiveness”. The country climbed two positions to 53rd in the 2017 Global Food Security Index, which ranks 113 countries according to the affordability, availability and quality of food for the population. The strength of Peruvian agriculture is due in part to its crop diversity, with coastal regions providing the majority of exports and inland production channelled towards domestic consumption. Agriculture currently constitutes 7.3% of GDP, according to the World Bank. This chapter features interviews with Adriana Giudice, General Manager, Austral Group; and Jorge Arangurí, Executive Director, Danper.