Supreme Decree reducing the DRAWBACK rate from 3% to 1% and then to 0.5% in 2025.
Legal basis: Supreme Decree N°189-2024-EF
Date of publication Official gazette el peruano: October 19, 2024
In recent years, Peru has sought to strengthen its position as a key player in international trade. However, the recent reduction in the percentage of the duty drawback scheme (DRAWBACK) has generated concern among exporters and agroexporters.
DRAWBACK is a key incentive for many companies, especially in labor-intensive sectors and imported raw materials. The reduction of the refund percentage can translate into lower profit margins, affecting competitiveness vis-à-vis neighboring countries that maintain more aggressive tax policies in favor of their exporters.
According to Supreme Decree N°189-2024-EF, which amends Supreme Decree N°104-95-EF, the drawback rate for exporters will be reduced from 3% to 1% and then to 0.5% in 2025.
It will be 1% from the fifth business day after the publication of this Supreme Decree until June 30, 2025, and from July 1, 2025 until December 31, 2025, said rate will be 0.5%, applying the procedures in force between said dates.
To remember:
Benefit (Dw) = FOB final export value x Drawback Rate (%)
If you would like to learn more about this tax regulation, our team of experts is available to answer any questions you may have about the impact on your business.
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