Peru is a representative democratic republic with 25 regions in western region of South America. It is an extremely bio diverse country with a multi-ethnic population and a high human development index. The population is expected to reach approximately 42 million in 2050, a growth of 40 percent. The unemployment rate has fallen steadily in recent years and is very low proportional to other republics in this region. Lima, the capital and one of the most important financial centres in Latin America, is home for many national companies and is the central point for industry. All these factors have resulted in a wide diversity of expressions in fields like art, literature, music, and cuisine.
Rising investment and consumption, improved terms of trade, and macroeconomic stability as well as the improving of the Peruvian economic policy are reasons for the huge economic growth in Peru. The metropolitan area of Lima houses around 7000 factories and that is another cause for the growth, thanks to the low cost infrastructure, well developed transport routes and highways and the quantity and high quality of the available workforce. Its main industrial activities include manufacturing, mining, fishing, and agriculture. Gold, zinc, cooper, and textiles are the major exports.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Peru. Forward planning is of the essence to optimize costs. Peru has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Peru, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Peru, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.