SUNAT Inquiry
It is asked whether professional associations are included within the definition of “company” set forth in Article 1 of the Regulations to Law No. 27037 and, therefore, whether the tax benefits provided in item 13.1 of Article 13 of Law No. 27037 apply to them.
Who can access the VAT (IGV) exemption in the Amazon region?
Law No. 27037—the Amazon Investment Promotion Law—provides that the VAT (IGV) exemption applies only to the taxpayers located in the Amazon regionprovided that they meet the requirements set forth in its Regulations (Supreme Decree No. 103-99-EF).
The Regulations clarify that such benefits apply exclusively to the “companies” located in the Amazon regionunderstood as: (i) individuals, (ii) marital partnerships, (iii) undivided estates, (v) legal entities considered as such under the Income Tax Law (LIR), provided that they generate third-category income and meet the location and activity requirements.
Do professional associations qualify as a “company”?
SUNAT concludes that they do not.
The analysis is based on the legal nature of professional associations, which is supported by the fact that the Constitution recognizes them as autonomous institutions with legal personality under public law and, moreover, the Tax Court (Tribunal Fiscal) has stated that they form part of the national public sector and do not conduct business activities.
Likewise, they are not included within the categories of legal entities provided for in Article 14 of the Income Tax Law (LIR).nor do they generate business income under the third-category regime.
Accordingly, they do not meet the essential elements required to be considered a “company under the terms of the Regulations to the Amazon Law.
Can they access the tax benefits?
Given that professional associations do not qualify as a companythey cannot access the tax benefits provided under the Amazon Law, including the VAT (IGV) exemption and other benefits related to the promotional regime.
SUNAT’s Conclusion
Professional associations are not included within the definition of “company” under the Regulations to the Amazon Law; therefore, the tax benefits under Article 13 of that Law do not apply to them..
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