On 8 May 2020, Peru’s Executive Power issued Legislative Decree 1481, which establishes a special rule for carrying forward losses incurred during fiscal year 2020. The legislative decree responds to the COVID-19 crisis.
Generally, a Peruvian company may carry losses forward in one of two ways:
- System A: Losses incurred in a year may be carried forward to offset 100% of profits obtained in the following four years, beginning with the year following the year in which the losses are reported.
- Sy…