On 4 December 2020, Peru enacted Law 31087, which repeals the special rules to promote agribusiness (i.e., agrarian regime) established in both Law 27360 and Urgency Decree 043-2019.
Background
In 2000, Peru enacted Law 27360, establishing the agrarian regime, which provided the following benefits to agribusiness entities:
- 15% corporate income tax rate
- 20% depreciation rate for investments in hydraulic infrastructure and irrigation works
- Value-added tax (VAT) recovery during the pre-operational …