
Peru
Peru is composed of 25 regions and 1 province*. They are Amazonas, Ancash, Apurimac, Arequipa, Ayacucho, Cajamarca, Callao, Cusco, Huancavelica, Huanuco, Ica, Junin, La Libertad, Lambayeque, Lima, Lima*, Loreto, Madre de Dios, Moquegua, Pasco, Piura, Puno, San Martin, Tacna, Tumbes, and Ucayali
Poverty and unemployment levels have fallen dramatically in the last decade, and today Peru boasts one of the best performing economies in Latin America.
Thank you to contributors to the Peru WikiFleet page: BDO: Arval-Relsa
Chapter 1: Economic and business environment
Demographics | Population 33.9 million people (2022) |
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Capital | Lima |
Major cities | 1. Lima (9.87 million) |
Languages | Spanish (official) 84.1%, Quechua (official) 13%, Aymara (official) 1.7%, |
GDP | US$226 billion (2021)
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Unemployment rate | 8.3% (April 2022) |
Main industries | mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas and natural gas liquefaction; fishing and fish processing, cement, glass, textiles, clothing, food processing, beer, soft drinks, rubber, machinery, electrical machinery, chemicals, furniture. |
Currency | Peruvian Sol |
Interest rate | 5.5% (June 2022) Source: Trading Economics |
Fleet Maturity Index (scaling) | Approximately 71% of multinational companies in Peru offer company's cars to some of their employees. |
Political key info | Pedro Pablo Kuczynski Godard won a very narrow presidential runoff election in June 2016. Facing impeachment after evidence surfaced of his involvement in a vote-buying scandal, President Kuczynski offered his resignation on 21 March 2018. Two days later, First Vice President Martin Alberto Vizcarra Cornejo was sworn in as president. |
Inflation | 8.78% (May 2022) |
Chapter 2 : Automotive market, segments & sales
Total Car park | Approximately 2.77 million vehicles (one in 11 inhabitants, est. 2017) Average vehicle age is 13 years
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New vehicle registrations (Cars, LCV, Trucks) | In 2022, a total of 159,814 new light vehicles registrations were reported. (up 1.7% year-over-year), being 44% SUVs, 20% pickups, 15.3% sedans, and 8% hatchbacks. source: AAP (Peru automobile association) |
Top 5 brands (total market) | 2021 sales 1. Toyota (31,005 units) source: Car Industry Analysis (AAP) |
Model preference top 5 (total market) |
Source: AhoraSeguros (2018) |
Chapter 3: Company car market
Total Fleet Park (company cars)/Fleet penetration in total fleet sales | 553,000 vehicles (approximately 20% of the country's total car park)
Source: Arval-Relsa |
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Evolution fleet sales (last 5 years) | In 2021, LCV sales rose 51% to 41,420 units from 27,503 (source: OICA) |
Top 5 fleet brands (fleet market) | National statistics are yet to be acquired. |
Fleet Model preference top 5 (fleet market) | National statistics are yet to be acquired. |
Chapter 4: Taxation & legislation
Perú | |||||
The basis of Company Car taxation in Perú is reflected in this overview. Different types of taxes are considered here: taxes related to the registration of the vehicle, income taxes and VAT aspects. Expected future developments are also briefly listed, if any. | |||||
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| VEHICLES OWNERSHIP. Vehicles: cars, vans, station wagons, trucks and buses not older than three years (Period counted from the first registration in the Vehicle Property Registry) | ||||
| OWNER (individual or entity) on 1 January of every taxable year | ||||
| 1% x the Vehicle’s original purchase value, import value or value registered on books | ||||
| Annual | ||||
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| Taxable Income x 29.5% | ||||
| Permitted when they are used in permanent way for the development of the business. | ||||
| Accelerated amortization on the leasing contract period, under special requisites. | ||||
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| (Car import/ car sale/car lease value) x 18% | ||||
| VAT payable = Output VAT – Input VAT Enterprises recognized as general taxpayers are entitled to use the input tax to credit against the output tax. Output VAT = sales value*applicable tax rate Input VAT = purchase value*applicable tax rate | ||||
| Taxable as financial service: Leasing interests x 18% | ||||
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| Vehicles import/ vehicles sale (by importer), included in the following NANDINA Tariff item numbers:
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| N/A | ||||
| Limited deduction for cars of categories A2, A3, A4, B1.3 and B1.4, assigned to use on Management, Direction, Representation or administration activities: - Limited number of vehicles depending on annual income. - Non permitted deduction when vehicle purchase value is over 30 Tax Units (2018 Tax Unit = PEN 4150) Company car provided for private use of employee is taxable for employee, as part of work income. | ||||
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| - Expenses deductible by driver if he assumes the expenses, and driver’s income qualifies as business income. - Expenses not deductible on driver´s personal tax return if cost are assumed directly by Company. Duly supported, deduction is allowed to the Company (with limits settled on point 5). | ||||
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Vehicles subject to duties | Included on NANDINA tariff item Code 87.03 “Passenger cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons ( "break" or "station wagon") and racing” | ||||
Tax application | CIF x 6% |
Source: BDO (2018)
Meanwhile, owing to a 10% increase of the ISC selective tax on consumption determined by the ministry of economy and finance, the price of new passenger vehicles operating on gasoline in Peru is seen increasing some 12% on into the second semester of 2018, something that will affect upcoming fleet renewal decisions. Source: Peru's automotive association AAP.
Chapter 5: Car policies
Corporate cars in Peru pertain more to vehicles used for utility purposes as opposed to benefit cars for company executives.
Utility vehicles, or those used to support company operations, commonly involve pickups and vans. They are mostly used by on-site workers, technicians, construction supervisors, among others.
Benefit vehicles such as sedans, hatchbacks, and SUVs are mainly used by salespeople, managers, directors, and other executives. Usually, the higher the job position, the more exclusive the vehicle is.
Sometimes, the vehicle could be used for personal use but it really depends on the policy of each client. To monitor whether the driver is using the vehicle for business or personal use, tools such as GPS can be used. To better manage fleets, it is ideal for leasing companies to have a central communication center which directs phone calls to the appropriate department needed.
For Arval-Resla,
- Traffic accidents are handled directly with insurance companies
- In the case of vehicle maintenance or if the car breaks down, customers contact the central office to request service.
- Traffic ticket fines, however, are managed internally. Once recieved, customers are informed.