Impact of the additional deduction of 3 UIT in the collection of the rents of fourth category (period 2017 - 2018): proposal to improve the professional’s tax compliance

Abstract

The objective of this work is to analyze the impact of the additional deduction of the 3 ITUs on the fourth category income tax tax collection in Peru in the years 2017 - 2018. This interest stems from the lack of projection that the State presented by not plotting how much would be the collection in the mentioned period. With the creation of the standard, an increase in revenue was expected during the first year of application (2017); However, there was a fall that was regularized in 2018, since the modification of the Income Tax Law, introduced by Legislative Decree No. 1258. In the same year, the State derogated the mortgage credit interests that were 100% deductible during 2017; however, there was no support from financial institutions for information

on taxpayers' mortgage loans. To understand this problem, this work analyzes the relationship of additional expenses contemplated in the regulations imposed by the Tax Administration regarding the need for taxpayers to require proof of payment. To this end, the main sources considered come from the Ministry of Economy and Finance, and from SUNAT, and other investigations of a similar nature were reviewed. Finally, recommendations are made for the tax compliance of fourth category income providers (professionals and trades).