What is the change? The Peruvian government has issued a decree repealing the annual alien tax on foreign residents (“tasa anual de extranjería,” or “TAE payment”).

What does the change mean? Effective immediately, foreign residents will no longer need to pay the tax, which was previously due in the first quarter of each year.

  • Implementation time frame: Immediate.
  • Visas/permits affected: Residence visas.
  • Who is affected: Foreign nationals applying for or renewing residence visas.
  • Business impact: The repeal of the tax will reduce the costs for expatriate employees in Peru.

Background: Previously, the TAE of approximately US$20 was due annually by paying online or at a Banco Nacion branch, and penalties of 100 percent were assessed for each late quarter.

BAL Analysis: Foreign residents who paid their annual tax last year by March 28, 2017, and who either filed or are seeking to file a Residence Visa renewal application in 2018 will benefit from this change since they no longer need to pay the tax. Only foreign residents with outstanding debts owed for the TAE from previous years must complete payment plus any fines for untimely payment.