Peru and the United Kingdom have concluded negotiations on the Convention for the Elimination of Double Taxation (CDI) between the two countries, the Ministry of Economy and Finance (MEF) reported on Friday.
Negotiations have taken place in recent years between the UK’s HMRC and the Department for the Economy and Finance.
The two countries hope to sign this treaty in the coming months. Once signed, the CDI will be implemented in both countries once they have completed the procedures required by their domestic legislation for it to enter into force.
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CDI It is a bilateral treaty that determines how each country taxes cross-border incomeHow will it prevent tax evasion and how will it provide relief from double taxation?
This treaty sets limits on how each country’s domestic legislation can tax cross-border income such as dividends, interest and royalties.
British and Peruvian companies have continually requested this treaty. Your company will play an important role in increasing cross-border trade and in investments, providing long-term certainty and stability to businesses on both sides and improving our bilateral relations.
Read also: The UK’s accession to the Trans-Pacific Partnership improves trade and investment opportunities in Peru
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