Peru is one of the top performing economies in Latin America, its recipe for growth being structural reforms combined with strategic alliances.
The Peruvian economy has bucked the trend in Latin America and continues to grow; we take a look at what changes helped increase growth last year and those expected to take place in 2016.
The government has an ongoing commitment to provide political, economic and social stability, and actively participates in the Pacific Alliance – an initiative to discuss the opportunities and challenges for boosting competitiveness in Peru, Mexico, Colombia and Chile. Collectively the four countries bring in more than 40% of Latin America's foreign direct investment.
Another significant step for Peru was the change made to corporate income tax at the beginning of 2015; until 2019 the rate will be reduced gradually to 26% from 30%.
Investors: keep an eye on Peru during 2016
In 2016, Peru's goals are to lift productivity, deepen foreign trade, promote private investment and improve infrastructure for better quality services and increased job opportunities.
In terms of technological progress the country took a step towards the digitization of processes by incorporating a new method to submit the monthly VAT declaration and the income tax payments. A virtual form is available since 1 January 2016 to taxpayers with access to the Peruvian Tax Administration (SUNAT) platform. The Virtual Form may be used only by those taxpayers who already keep their Sales, Income and Purchasing records in SUNAT's platform.
The International Monetary Fund also recommends Peru implement structural reforms and targets public spending on infrastructure in order to strengthen the country's prospects.
A key event in the first half of 2016 will be the presidential election; the public will be looking at policies around economic variables and further development opportunities.
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