Term | Main definition |
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UIT - Peruvian tax unit | The UIT, Unidad Impositiva Tributaria, is a reference unit set annually by the Peruvian Ministry of Economy (MEF) to determine taxes, penalties, fines, processing fees, deductions, and others. In 2023, 1 UIT is equivalent to S/ 4,950. For example, the fine for traffic violations isn’t an amount in Soles, but a percentage of an UIT. The fine for drunk driving is 1 UIT (or 100% of an UIT). So, if they catch you in 2023 you might end up paying S/ 4,950, while the same traffic violation would have cost you S/ 4,600 the year before (2022) or only S/ 4,400 in 2021. Or the fine for overstaying a tourist visa is not a fixed Soles amount but equals 0.1% of an UIT. So, in 2023 you have to pay a fine of S/ 4.95 for each day you overstayed, while in 2022 it was S/ 4.60 for each overstayed day or in 2021 S/ 4.40. Or Peruvian income tax, which is imposed on a scale of brackets of the income. For the first 5 UITs of your income per year you pay 8% income tax, for the amount above that up to 20 UITs 14%, for the amount above that up to 35 UITs 17%, for the amount above that up to 45 UITs 20% and for the amount above 45 UITs 30%. So, in 2023 you pay 8% tax on the first S/ 27,750 (5 UITs) of your income and then on the income above that up to S/ 99,000 (20 UITs) 14% and so on. |
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