Second National Reconcilation Study EITI Peru - unofficial…

Consultoría para la Elaboración del Segundo Estudio Nacional de
Conciliación de la Iniciativa de Transparencia para las Industrias
Extractivas (ITIE) en el Perú (2008 – 2010) (continuación)
(v) The payments that have been reconciled correspond to what the companies actually paid according
to the criteria established in the EITI Manual. In the case of Income tax and according to the
agreement reached by the Working Commission for EITI Peru, we have reconciled the amount
declared in box 504 of the annual Income Tax declaration and the advance payments for Income
Tax that have been credited against the ITAN declared in box 126 (where applicable) with the
exception of the companies that have more than one administrative economic unit, where we
considered the amount declared in the mining or hydrocarbons annexes of the same income tax
declarations. The amounts declared in boxes 504 and/or in the mining and hydrocarbon annexes
are paid through monthly payments, deductible tax applications, payment regularization of final
balances, miscellaneous credit applications, among others. The distribution of Tax Revenues, both
in the geographic regions through the canons as well as directly to the Public Treasury, is effected
according to annual tax declaration provided by the companies every year in their Sworn Tax
declarations.
It is important to stress that according to Peruvian tax norms, taxpayers are classified according to scale
and taxes paid. This classification is divided into two large groups: Medium and Small Taxpayers
(MEPECOs) and Main Taxpayers (PRICOs). Being part of the PRICOS category gives companies certain
benefits but their importance (in terms of the scale of their contributions) also means that they are
subjected to more monitoring by the Tax Administration. In practice, higher levels of monitoring are
manifested in more frequent fiscalization, which of course entails more requests for information. SUNAT
determines which companies qualify for Main Contributor (PRICO) status based on taxpayer declarations
and its own criteria and calculations. Companies that are part of the PRICOS category tend to receive
better service in the form of more personalized attention; access to special locales for format reception and
administrative procedures; as well as access to on-line recalculation of taxes owed (automatic reliquidation
of the amount declared) when tax declarations are presented. When PRICOS present their tax
declarations, the system recalculates the taxes owed (on-line) while the information contained on the
formats is uploaded. Consequently, if an inconsistency is detected on the tax declaration the filer is
automatically informed (See Annex IX, Classification of the companies included in the Second Study for
National Reconciliation EITI).
Accordingly, it is important to mention that Peruvian legislation does not contemplate, as part of its
requirements for declaration and payment of the concepts included in this study, certification or auditing of
the figures presented. In light of this, it is important to consider the following:
- Income Tax and Mining Tax: the information provided to the Tax Administration (SUNAT) is
considered a sworn declaration according to the Peruvian tax code and as such is subject to review
by SUNAT following presentation. The statute of limitations in these cases in generally 4 years in
the case of Income Tax, beginning on January 1 of the year after the corresponding Sworn Tax
declaration and Mining Royalties Declaration has been presented. In the case of Mining Royalties,
the statute of limitations was set at four years in 2007.
- Hydrocarbon royalties: are calculated by the collections agency (Perupetro); companies are
obligated to pay the calculated amount following a simple a validation process.
Consultoría para la Comisión Multisectorial Permanente de la ITIE Perú
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