US Company Formation from Peru (2026): Fourth-Category Income, the MYPE Regime, International Fiscal Transparency, Foreign-Source Income Rules and the US LLC vs C-Corp Choice Without a Treaty

Peru's economy has grown on exports: copper and gold from the mines, blueberries, avocados, grapes and asparagus from the coastal valleys, and a fast-growing services sector in Lima that sells development, design, call-centre and back-office work abroad. Since 2009, the US–Peru Trade Promotion Agreement has made the USA one of Peru's main markets. What Peru does not have is an income tax treaty with the USA.

That makes Peru's own rules decisive. Peru taxes domiciled individuals on foreign-source income at the same progressive rates as their work income, applies international fiscal transparency to passive income of controlled foreign entities, and gives exporters of services an IGV (VAT) exemption that a badly designed structure can lose. This guide covers each of these, going further than our Latin America overview, and compares US LLC formation with US C-Corp formation for Peruvian freelancers, companies and start-ups.

In short: Peruvians and Peruvian residents can own 100% of a US LLC or C-Corporation, formed remotely. There is no US–Peru income tax treaty, so US corporate dividends carry 30% withholding. Peru taxes domiciled individuals on worldwide income; foreign-source income is added to work income and taxed at 8% to 30%. Peruvian companies pay 29.5% (or 10% on the first 15 UIT of profit under the MYPE Tributario), and dividends to individuals are taxed at 5%. International fiscal transparency can attribute passive income of a controlled foreign entity to its Peruvian owner. Services exported from Peru can be exempt from IGV if the conditions are met. With UCB, a Wyoming LLC with EIN is $249 and a Delaware corporation with EIN is $358, all-in.

How Peru taxes individuals

Domicile

Peruvian nationals with their residence in Peru, and foreigners who have stayed more than 183 days in a 12-month period, are domiciled and taxed on worldwide income.

Work income and foreign-source income

Peru divides income into categories:

• Fourth category: independent work (freelancers issuing recibos por honorarios), with a deduction of 20% up to a cap.
• Fifth category: employment.
• Foreign-source income: dividends, interest, business income and other income from abroad.

For domiciled individuals, fourth- and fifth-category income and foreign-source income are added together and taxed at progressive rates of 8%, 14%, 17%, 20% and 30%, by bands measured in UIT (the tax unit updated each year: up to 5 UIT, 20 UIT, 35 UIT, 45 UIT and above). Foreign tax paid on foreign income can be credited, up to the Peruvian tax on that income.

What this means for a US company

• Work you do in Peru is Peruvian-source fourth-category income (or business income), whichever company invoices it.
• Dividends from a US corporation are foreign-source income, taxed at your marginal rate up to 30%, with credit for the 30% US withholding up to the Peruvian tax. Combined, that is at least 30%, and often more after the US company's own 21%.
• Distributions from a US LLC are generally treated as income from a foreign entity, taxed as foreign-source income when received, unless the fiscal transparency rules apply first.

International fiscal transparency

Peru's régimen de transparencia fiscal internacional (Articles 111 to 116 of the Income Tax Law) attributes the passive income of a controlled non-domiciled entity to its Peruvian owners each year, whether or not it is distributed, if the entity is:

• resident in a low or no-tax country or territory, or non-cooperating jurisdiction; or
• subject to a preferential tax regime, or pays tax on that income of less than 75% of what Peru would charge.

Passive income includes dividends, interest, royalties, rents and certain capital gains. A US LLC that pays no US tax on its passive income can meet the 75% test. A US LLC with active service or trading income is generally outside the regime.

How Peru taxes companies

• General regime: 29.5% corporate income tax. Dividends to individuals are taxed at 5%.
• MYPE Tributario: for companies with revenue up to 1,700 UIT, 10% on the first 15 UIT of profit and 29.5% on the rest.
• Régimen Especial (RER): 1.5% of net monthly revenue for very small businesses, with restrictions on activities.
• IGV (VAT) of 18%. Services exported from Peru are exempt if they are listed in Appendix V of the IGV law, provided to a non-domiciled client, used abroad and paid from abroad, among other conditions.

The IGV export exemption is often the largest benefit for a Peruvian services company with foreign clients. Your structure must preserve it.

No US–Peru treaty

The USA and Peru have a free trade agreement but no income tax treaty. US domestic rates apply:

• 30% on dividends from a US corporation;
• 30% on royalties;
• 30% on related-party interest;
• US tax on business profits effectively connected with a US trade or business, with no permanent establishment threshold.

Peru also withholds on payments to non-domiciled entities for Peruvian-source income, at rates that depend on the type of payment, such as 30% for most services performed in Peru or 15% for technical assistance used in Peru.

US LLC formation from Peru

US tax position

The IRS disregards a single-member LLC with a non-resident owner. Without a treaty, US tax depends on whether the income is effectively connected with a US trade or business. If you work from Peru, with no US office, employees or dependent agents, it is not, and there is no US tax (see effectively connected income explained). Distributions are not dividends, so the 30% does not apply. The LLC files Form 5472 with a pro forma Form 1120 every year, and the penalty for missing it is $25,000 (see Form 5472 explained).

Example: a developer in Lima

These are illustrative figures, not a client case, at PEN 3.6 to the dollar.

Diego is a mobile developer in Miraflores with US$60,000 (about PEN 216,000) a year from US start-ups.

• As an independent worker (fourth category), he issues recibos por honorarios to his foreign clients, deducts 20% (up to the cap) and is taxed at progressive rates up to 30%. His services to foreign clients are exported services, and his recibos are not subject to IGV in any case.
• Through a US LLC, there is no US tax. In Peru, the income is still Peruvian-source because he works in Lima. If he books it in the LLC and draws it later, he risks paying tax on foreign-source distributions as well as having undeclared Peruvian-source income.
• Through a Peruvian SAC under the MYPE Tributario, the company pays 10% on the first 15 UIT of profit, exports its services free of IGV if the conditions are met, and he pays 5% on dividends.

He sets up a SAC. Two clients insist on a US vendor, so the SAC forms a small Wyoming LLC that contracts with them. The LLC pays the SAC for the work, the SAC invoices it as an export of services, and the profit is taxed in Peru.

US C-Corp formation from Peru

US tax position

A US corporation pays 21% federal tax on its profits plus state tax, and files Form 1120 and Form 5472 every year (see the 21% corporate tax explained and the C-Corp guide for non-residents). Its dividends to Peru are withheld at 30%.

Example: an agro-exporter's US company

Take an illustrative case: a blueberry and avocado exporter from La Libertad sells to US supermarkets through importers in Philadelphia and Los Angeles. It sets up its own importer, a Delaware corporation registered in Pennsylvania, with a sales manager, a cold-storage contract and an FDA food facility registration.

• The US company buys fruit from the Peruvian exporter at arm's-length prices, sells to retailers, and pays US tax on its distribution margin.
• The Peruvian company pays 29.5% on its export profit and keeps its IGV export treatment for goods.
• Profits stay in the US company to fund working capital, because dividends would carry 30% US withholding.

See US subsidiary for a foreign company.

Start-ups

Peruvian start-ups raising from US investors usually need a Delaware C-Corporation at the top, with the SAC as a subsidiary. Without a treaty, any dividends to Peruvian founders would lose 30%, but growing start-ups rarely pay dividends. A sale of Delaware shares by a non-resident is generally not taxed in the USA, and the founder is taxed in Peru on the gain as foreign-source income. See raising US investment as a foreign founder.

Which state

• Wyoming or New Mexico for a small LLC owned by a SAC.
• Delaware for a start-up or subsidiary.
• Florida, Pennsylvania or California for agro-exporters' importers near the ports.

See best state for non-residents and the state selector.

What it costs

UCB's prices include state fees and the first year of registered agent service:

• Wyoming LLC with EIN: $249, or $348 with a US bank account application.
• Delaware corporation with EIN: $358.
• Florida LLC with EIN: $299.

A Wyoming LLC costs $121 a year to keep active, or $421 with the annual federal return. A Delaware corporation costs $578 a year. A US business address with your own suite number is $60 a year. See what a US LLC costs every year.

Documents and banking

For an individual, your Peruvian passport (US banks do not accept the DNI alone) and proof of address such as a Luz del Sur or Enel bill, a Sedapal bill or a bank statement, translated into English. For a SAC, a copia literal from SUNARP, its RUC and a board resolution, translated. Peru has no exchange controls, but Peruvian banks such as BCP, BBVA, Interbank and Scotiabank ask for documents on larger transfers. See US business bank accounts for non-residents and receiving payments from US clients.

Mistakes to avoid

• Treating income for work done in Peru as foreign because a US LLC invoiced it.
• Losing the IGV export exemption by routing services in a way that does not meet its conditions.
• Holding passive income in a US LLC within reach of international fiscal transparency.
• Paying dividends from a US corporation to Peru at 30% with no treaty.
• Missing Form 5472 in a year when no US tax was due.

Frequently asked questions

Is there a US–Peru tax treaty? No. The two countries have a trade agreement but no income tax treaty. US dividends, royalties and related-party interest paid to Peru are withheld at 30%.

How does Peru tax income from my US company? Domiciled individuals add foreign-source income to their work income and pay 8% to 30%, with credit for foreign tax. Work done in Peru is Peruvian-source income in any case.

Does international fiscal transparency apply to my US LLC? If the LLC is controlled from Peru and earns passive income taxed at less than 75% of the Peruvian rate, it can.

Can my Peruvian company export services free of IGV through a US LLC? Yes, if the Peruvian company's services to the LLC meet the conditions for exports of services.

Does my US LLC pay US tax? Not if it has no US office, staff or agents. It files Form 5472 and a pro forma 1120 every year.

How UCB can help

We form US companies for Peruvian owners and SACs remotely, in Spanish or English: the state filing, EIN, registered agent, US business address and bank application. Each year we file the US returns through our US tax filing service. Your contador handles SUNAT filings, and we give them the US records they need. See our formation, EIN and bank account package, and the Chile and Ecuador guides.

Setting up a US company from Peru? WhatsApp us at +1 315 961 2956 or email enquiries@ucbsolutions.com.