IR exemption validity extended to foundations and non-profit associations




The Executive Branch extended until December 31, 2026, the validity of the exemptions contained in article 19 of the Income Tax Law.

In accordance with the provisions of Legislative Decree No. 1549, until that date, the exoneration of:

  • The income that religious societies or institutions allocate to the realization of their specific purposes in the country.
  • The income from foundations and non-profit associations whose constitution instrument exclusively includes one or more of the following purposes: charity, social assistance, education, culture, science, art, literature, sports, politics, unions, and/or of housing.
  • Interest from development credits granted directly or through financial providers or intermediaries by international organizations or foreign government institutions.
  • The difference between the updated value of the premiums or installments paid by the insured and the sums that the insurers deliver to the former upon expiration of the term stipulated in the life insurance endowment contracts and the benefits or shares in life insurance obtained by the insured.
  • Income from properties owned by international organizations that serve as their headquarters.
  • The remuneration received, for the exercise of their position in the country, by officials and employees considered as such within the organizational structure of foreign governments, foreign official institutions and international organizations, provided that the constitutive agreements so establish.
  • Any type of fixed or variable rate interest, in national or foreign currency, that is paid by deposit or imposition in accordance with the banking law, as well as the capital increases of said deposits and impositions in national or foreign currency, except when said Income constitutes third category income.
  • The gross income received by the national sports representations of foreign countries for their performances in the country.
  • Royalties for technical, economic, financial, or other advice, provided from abroad by state entities or international organizations.
  • Gross income received by performances from foreign countries for live theater, zarzuela, classical music, opera, operetta, ballet and folklore shows, classified as public cultural shows by the National Institute of Culture, performed in the country.
  • The interests that the savings and credit cooperatives receive or pay for the operations that they carry out with their members.
    Interest and other earnings from external credits granted to the National Public Sector.

The norm also establishes that the annual sworn declarations of income tax, the list of religious societies or institutions, affected foundations and non-profit associations exempt from income tax, as well as the sum of the net income exempt from the group of religious societies or institutions, of affected foundations and non-profit associations, grouped according to the type of taxpayer reported in the Single Taxpayer Registry, will be published on the institutional portal of the Sunat.

The information for the years 2024, 2025 and 2026 is published up to 120 calendar days after the last due date for filing the annual sworn income tax return for each of said years.

This legislative decree enters into force on January 1, 2024.


Source: The Peruvian

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