Peru : Indicators

2010 > Fiscal regime: tax collection and redistribution

Fiscal regime: tax collection and redistribution

To what extent does the law provide for taxes, royalties, or other any other benefits to be collected from permit holders and given to affected communities? Are any laws or regulations regarding this implemented effectively?

Yes, the Forest Canon Law regulates this matter.

Is there a system of tax / royalties redistribution?

Yes. The forest canon law stipulates that 50% of the revenues from the use of forest and wildlife products should be redistributed to the affected communities. This also includes the permits and authorizations assigned by the relevant authority to the benefit of Regional and Local Governments, as well as areas where concessions, authorizations and permits have been granted. Read more...

Is the system of tax / royalties redistribution effective in meeting any legal obligations?

Yes, the Ministry of Economy and Finance carries out a quarterly distribution. Read more...

Is there a stakeholder consultation process regarding the use of community funds?

There is no consultation process on the percentages of the distribution of funds. The items or components where money is to be spent are predefined. Read more...

Are figures for collection and distribution published?

Yes, but information can be found only at the local government level. Read more...

Is there a system of social obligations, where concession holders have to provide benefits directly to affected communities?

No, there is no formal or legal mechanism that obliges permit holders to provide financial support or payments in kind to communities as part of a social obligation system. In practice, some permit holders reach agreements with communities to be able to operate without conflicts. It is important to differentiate this from payments for damages that permit holders cause to communities, and to note that the later is a matter falling under civil law, known as payments for damages. Read more...