Peruvians paid the lowest Taxes in South America

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windsportinperu
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Peruvians paid the lowest Taxes in South America

Postby windsportinperu » Mon Jul 15, 2019 12:10 am

Excluding the broken Economy of Venezuela, Peruvians paid 16% of PIB as taxes , while in Brazil 32%

Another good reason to invest in Peru

https://diariocorreo.pe/economia/peru-i ... na-877233/


Formidable 1
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Re: Peruvians paid the lowest Taxes in South America

Postby Formidable 1 » Mon Jul 15, 2019 2:20 pm

windsportinperu wrote:Excluding the broken Economy of Venezuela, Peruvians paid 16% of PIB as taxes , while in Brazil 32%

Another good reason to invest in Peru

https://diariocorreo.pe/economia/peru-i ... na-877233/


"Little by little, one walks far"
What would be a good investment in your opinion?
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Alan
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Re: Peruvians paid the lowest Taxes in South America

Postby Alan » Mon Jul 15, 2019 4:06 pm

windsportinperu wrote:Excluding the broken Economy of Venezuela, Peruvians paid 16% of PIB as taxes , while in Brazil 32%

Another good reason to invest in Peru

https://diariocorreo.pe/economia/peru-i ... na-877233/



Actually, it is a good reason not to invest in Peru, since the 16% is an average, and thanks to the large informal economy - which generates little or no income tax - the formal companies (the ones who might come here to invest, for example) pay a disproportionately high rate, and you can only tax the formal economy so much before businesses becomes unsustainable. That's not a big selling point!

Check out this graph: https://data.oecd.org/tax/tax-revenue.htm Peru is not included, but you can see Chile clocking in at 20% (GDP/Tax burden), and the average for OECD countries is closer to 35%.

Higher tax collection would mean better wages for the public sector, helping to attract better workers. It would mean more infrastructure (huge road deficit in Peru), more and better hospitals, schools.... the list goes on.

But it remains super hard to formalize small businesses (even some larger businesses), because business owners are all of a sudden presented with a lot of additional payments (not just income tax) but expenses related to labor (medical, vacations, gratifications.... the expense for an employer is roughly 1.45 x the wage the worker receives.

Lack of formalization and the inability to collect taxes is one of the biggest challenges Peru faces.
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windsportinperu
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Re: Peruvians paid the lowest Taxes in South America

Postby windsportinperu » Mon Jul 15, 2019 7:55 pm

It is very easy to create a small business in Peru . I do not know if it is the same easiness for expats

https://gestion.pe/economia/empresas/re ... nlt-249799

Having employees at “planillas” is the same everywhere in South America. You have to pay for vacations, gratifications, etc. it is normal, so Peru is not the exception

A country with solid money, tiny inflation, Fiscal Surplus, cheap food, cheap transport, cheap workforce, is a good scenario for new investors. The profitability depends on the nature of the business itself.
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windsportinperu
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Re: Peruvians paid the lowest Taxes in South America

Postby windsportinperu » Mon Jul 15, 2019 8:09 pm

Formidable 1 wrote: What would be a good investment in your opinion?


The good investment depends on the investor. What is you are of expertise ?

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