PERU adjusted its income tax rates. Rates will be higher in 2002 than in 2001.

The new base income tax rate for corporations and partnerships will be 27%. An additional tax of 4.1% must be paid on profits that are distributed in an effort to encourage companies to reinvest earnings rather than distribute them to shareholders. Branches of foreign companies doing business in Peru will be subject to income tax at a 30% rate.

At the same time, Peru will make it easier to carry forward losses. Companies have been able to carry forward losses for up to four years. This will not change, but the four years will be measured in the future from the first year in which the company has profits