Living in Peru : your everyday companion

1) Until 2005, whenever the results generated by IFD contracted outside the country were negative (a loss), the Sunat did not accept the deduction of the loss on the basis of an erroneous interpretation of Article 51 of the Orderly Unique Text of the Income Tax Law (TUO), which establishes that resident taxpayers will compensate one another for the results of their sources that produce foreign income, and only if these operations result in net income, will they be added to their Peruvian income.
Evidently, Article 51 of the TUO was not applicable to IFD contracted outside Peru, since the taxpayer who is resident of Peru and contracts these instruments is not carrying out an activity abroad. In effect, simply contracting an IFD outside of Peru cannot be considered as undertaking an activity abroad, another reason why cases of coverage IFD are treated as goods or services located in Peruvian territory.