Since March 6, natural persons must submit the annual tax return for last year. Find out here for whom it is mandatory, what happens to those who receive income from a foreign source, among other details.
Natural persons may submit their annual Income Tax (IR) Affidavit (DJ) 2022 as of March 6, 2023, as provided by Sunat. This obligation is for people who are domiciled in the country for tax purposes and who receive work income from a Peruvian source and/or income from a foreign source, explains Giorgio Balza, principal associate of Cuatrecasas.
Those domiciled subjects who only receive fifth category income and who do not determine a favorable balance, as well as non-resident subjects for their Peruvian source income, are not obliged to present the declaration.
According to the local tax framework, everyone is entitled to the general deduction corresponding to 7 Tax Units (UIT), says Balza. Therefore, workers are free to pay taxes for the first S/32,200 they receive for a whole year. It is worth mentioning that, by 2022, the value of an UIT was S/4,600.
For this reason, those who determine a debt to be paid or who carry balances in favor of previous years and apply it against the tax or have used said balances against interim payments for fourth category income during 2022 are obliged to carry out the annual DJ.
What about those who receive income from a foreign source?
Regarding those who receive income from a foreign source, Balza explains that these must be added to work income, after applying the corresponding deductions. The result of this sum will be the tax calculation base.
“It must be taken into account that income from a foreign source is generated by all those people who perform physical work outside Peruvian territory (regardless of where their employer or whoever hires them is located) and/or from the returns on their investments abroad,” the lawyer needs.
For example, those people who, through applications and virtual platforms, invest in shares, bonds, investment fund certificates, among other assumptions, which are issued by foreign companies, can generate capital gains (from the sale of their assets ), interest, dividends or any other return on your invested capital, it adds.
What are the deductible expenses?
If there is a balance in favor, the taxpayer may request a tax refund with the presentation of the annual declaration or wait for the ex officio refund, which will be made as of April 12, 2023, mentions Balza.
“The refund corresponds to people with fourth category work income (independent workers) and / or fifth category (that is, payroll workers) who made deductible expenses between January and December 2022,” he adds.
The tax administration contemplates nine types of expenses for which natural persons with fourth or fifth category income can deduct from their annual IR payment and request a refund: consumption in restaurants, bars and hotels is one of them. “The taxpayer can deduct up to 25% of their consumption made in said establishments,” says Balza.
In addition, rental expenses (up to 30% of the total cost), professional fees of doctors and dentists (30%) and contributions to EsSalud for hiring domestic workers, as well as others related to tourism, can be deducted.
Source: The Republic