Peru

Peru

Introduces new incentives for the textile and clothing sectors

22 Dec 2023

On 22 December 2023, Peru adopted the Law No. 31969. Effective from 1 January 2024, this law introduces new measures to enhance competitiveness and job creation in several sectors, including textile, clothing, agriculture, irrigation, agro-export, and agro-industry.

The law introduces 2 types of tax incentives for the textile and clothing sector:

  • First, the law introduce a 20 per cent tax credit for reinvesting after-tax profits in 2024 through 2028. This benefit, subject to specific conditions, is exclusive to the textile and clothing industries. Re-investments must be directed towards purchasing assets for eligible textile and clothing activities.

  • Additionally, the law introduces a special depreciation scheme for machinery and equipment bought during 2024-2028, specifically for the textile and clothing sectors

  • Type:
    • Promotion and facilitation (Investment incentives)
  • Industry:
    • Manufacturing (Manufacture of textiles, wearing apparel, leather and related products)
  • Sources: