Peruvian Tax Court concludes income received by a silent partner in a silent partnership will be treated as dividends

The income distributed by the active partner to the silent partner in a silent partnership (association in participation) will be treated as dividends. Therefore, dividends received by silent partners in a silent partnership will not be subject to withholding tax, if the silent partner is a Peruvian entity, and will be treated as passive income subject to withholding tax in Peru, if the silent partner is not a Peruvian entity.

On 2 April 2021, the Peruvian Tax Court published in the Official Gaze…