By this regulation, the new Regulations of Law No. 29230—the law that promotes regional and local public investment with private-sector participation—have been approved, in order to expand the development of the Works for Taxes (Obras por Impuestos) mechanism.
The purpose is to align the implementing regulations with the amendments introduced by Law No. 32460, published in October of last year, which aimed to expand and strengthen the Works for Taxes (Obras por Impuestos) mechanism. Among the key changes introduced at that time—and now addressed in the new regulations—are the following:
- The expansion of public entities’ authority, allowing the National Government and public universities to participate in selection processes and to include the operation and maintenance of the investments.
- The diversification of the funding sources for the certificates (CIPGN, for the National Government; and CIPRL, for local and regional governments), as well as the expansion of the taxes that companies may use to offset up to 80% of their tax liabilities (Temporary Tax on Net Assets, Income Tax under the Special Regime, Income Tax under the MYPE Tax Regime, Special Mining Tax, Value Added Tax (VAT/IGV), and Selective Consumption Tax (ISC)).
- The introduction of operational and procedural improvements, such as deadlines for Comptroller General reports and extensions in the event of contractual disputes.
- The incorporation of new modalities such as “Services for Taxes”, the allowance of joint project execution among entities, the strengthening of ProInversión’s role, and the enabling of priority projects and services in health, sanitation, education, and territorial planning.
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