Peru’s tax authority has expanded its “Works for Taxes” program, allowing companies to now pay their Value Added Tax (IGV), in addition to Income Tax and other taxes, by funding public works projects. The new modality focuses on essential public services in underserved areas, specifically rural communities, border regions, and areas under states of emergency. Previously limited to Income Tax contributions, the program’s expansion aims to accelerate infrastructure development and improve access to crucial services. These projects will prioritize healthcare, education, and potable water initiatives. The government anticipates this will alleviate financial burdens on public budgets while simultaneously addressing critical infrastructure gaps. This broadened scope is expected to significantly increase the program’s impact and reach across the country. The initiative seeks to foster public-private collaboration for improved public welfare.
