Peru Moves to Tax Cryptocurrency Profits at 29.5% for Companies, 8%-30% for Individuals

Peru has seen a significant rise in the adoption of cryptocurrency, with digital assets like Bitcoin and Ethereum being widely used by individuals and businesses. As crypto activity increases, the need for taxation becomes more pressing. Adhering to tax compliance helps customers avoid hefty penalties and ensures adherence to the country’s regulatory standards.

Peru’s main tax authority, the Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT), is working to formalize the taxation of cryptocurrency. This means that individuals and businesses in Peru can no longer ignore their tax obligations on crypto assets. SUNAT, the entity in charge of cryptocurrency taxation, is moving towards integrating digital assets into the existing taxation system. In early 2025, SUNAT announced that profits from crypto transactions could fall under Capital Income taxes, marking a significant regulatory change.

Cryptocurrencies are classified as intangible, movable assets, similar to other nonphysical and nonmonetary assets according to international standards. This classification determines whether crypto is taxable under existing income and capital gains tax rules. In Peru, cryptocurrency is taxed when it is sold, transferred, or exchanged for profit at a higher value. Income Tax applies to earnings from mining, staking, airdrops, and payments in crypto. Value Added Tax (VAT) does not apply to crypto transactions as they are considered intangible asset transfers. The Financial Transaction Tax (FTT) applies to funds transferred to local bank accounts related to crypto. Wealth or Inheritance Tax is not currently applicable to cryptocurrency holdings in Peru.

For individuals, Capital Gains Tax is not applicable unless their transactions become habitual, in which case they are subject to income tax rates. For companies, there is a flat rate of 29.5%. Income Tax Slabs for individuals vary progressively from 8% to 30% according to total income. Peru’s Income Tax Law allows for the exemption of gains from assets held longer than one year. Business-related expenses, such as mining costs, may be deductible if sufficiently documented.

The buying and selling of crypto are subject to capital gains taxes if the sale is for a profit. Crypto Mining and Staking income is categorized as taxable income, taxed at the rate of regular income. Crypto received as salary or payment is taxable as personal or business income. Gains realized in crypto-to-crypto trades are considered taxable events. DeFi activities, such as lending and yield farming, may be income or capital gains, depending on the setup. NFT sales are liable to capital gains tax.

Taxpayers are required to declare their annual income tax by the 31st of March of any year. Although there are no crypto-specific forms, digital asset income must be reported in similar forms to standard disclosures. Individuals and companies must keep accurate records of the acquisition date, value of the transaction in Peruvian soles, and supporting documentation. Failure to comply may result in large penalties, so it is highly recommended that a tax advisor is consulted.

Legal business-related crypto expenses, such as mining hardware, electricity, and transaction fees, can be deducted by taxpayers as long as they are well documented. Losses resulting from cryptocurrency transactions could be reduced against general tax laws. Long-term holders may be free from any capital gains if the crypto has been held for more than one year, but crypto-specific guidance for the same is still evolving.

SUNAT is strengthening crypto enforcement by using data from financial institutions, crypto exchanges, and platforms that comply with the Know Your Customer (KYC) rules. Other tools that use blockchain analytics are also being used to trace taxable activities. Penalties may go up to 300% of the undisclosed tax, plus interest, for citizens who do not declare crypto income. Criminal charges apply in cases of severe intentional evasion. SUNAT has begun mailing inductive letters to those suspected of not declaring crypto income to justify transactions and financial activities. With scrutiny increasing, staying compliant becomes a must.

Crypto taxation in Peru could be formalized within a couple of years, with crypto falling under Capital Income according to SUNAT’s ongoing evaluations. This could make the regulatory environment clearer and attract more investment while ensuring fair taxation. However, details and time frames for the implementation are still under discussion.

Although Peru’s crypto taxation remains developing, SUNAT is taking steps towards proper regulation. From 2025 onwards, individuals and businesses will have to start reporting crypto income or capital gains with rates starting between 8% and 30% for individuals and 29.5% for companies. It is necessary to observe compliance by maintaining accurate record-keeping and reporting in time to avoid serious penalties. Due to its intricate nature, seeking professional tax advice from someone who handles both Peruvian tax amounts and crypto transactions is recommended.