Peru signs agreement with United Kingdom to prevent double taxation

By Espinosa Bellido Abogados

The Governments of Peru and the United Kingdom signed a bilateral agreement to prevent double taxation (DTA), which will enable measures to combat tax evasion and avoidance in commercial and financial relations between both parties.

Peru-UK Double Taxation Convention was signed in London on 20 March 2025. It has not yet entered into force. This shall happen upon completion of the procedures required by the law of both countries for the bringing into force of this Convention.

The agreement will, among other benefits, establish a predictable, secure, and favorable regulatory framework for investments from companies in both the UK and Peru.

Likewise, mechanisms for collaboration and mutual assistance will be established, allowing both countries' tax administrations to have the tools necessary to combat tax evasion and avoidance.

The UK's investment in Peru reached USD 12.97 billion over the past 20 years, including executed investments, commitments, and plans by British companies in the country.

Peru is also exploring double taxation agreements with new markets, including the United Arab Emirates, Saudi Arabia, Australia, and Singapore, where requests will be submitted to begin negotiations.

To date, Peru has signed nine DTAs, including with Chile (2004), Canada (2004), the Andean Community (2005), Brazil (2010), Mexico (2015), South Korea (2015), Switzerland (2015), Portugal (2015), and Japan (2022).