TIEA Agreement Between Peru and United States

Sandra Pamela Tuesta Quispe
CTP N 0541
Certified Licensed Translator
Spanish English French Portuguese
_________________________________________________________________________________________________________
CERTIFIED TRANSLATION No. 0118.2015
Page 1 of 10
14/08/92 .- D.L. No. 25665.- The Agreement for the Exchange

of Tax information, entered into by the Government of the
Republic of Peru with the Government of the United States of
America is approved. (08/18/92)
WHEREAS:
The Government of Emergency and National Reconstruction;
With the approving vote of the Council of Ministers;
Has given the following Decree Law:
Section
1.The
Agreement
for
the
Exchange
of
Tax
information, entered into by the Government of the Republic
of Peru with the Government of the United States of America
in the city of Cartagena, Colombia, on February 15, 1990,
which is composed of eight (08) sections is approved.
Section 2.- The Ministry of Foreign Affairs is authorized to
proceed to the respective exchange of notes for the full
validity of the instrument to which the previous section
refers.
Section 3.- The Agreement to which this Decree Law refers
shall be effective upon making the respective exchange of
notes by the representatives of the Contracting States,
pursuant to the provisions of section 7 of such Agreement.
Section 4.- This Decree Law shall be effective the day of its
publication in El Peruano official newspaper.
WHEREAS:
Let it be published and performed.
ALBERTO FUJIMORI FUJIMORI
OSCAR DE LA PUENTE RAYGADA,
President of the Council of Ministers and Ministry of Foreign
Affairs.
CARLOS BOLOA BEHR,
Minister of Economy and Finance.
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF PERU AND
THE GOVERNMENT OF THE UNITED STATES OF AMERICA FOR THE
EXCHANGE OF TAX INFORMATION
SECTION 1
PURPOSE AND SCOPE OF APPLICATION
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Pasaje Bahia San Juan 120, San Miguel - Telephone: (511) 6407127
traduccioneszenoni@gmail.com - www.traduccioneszenoni.com

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1.1. The Government of the Republic of Peru and the

Government of the United States of America, wishing to
safeguard the precise determination and collection of taxes,
prevent fraud and tax evasion, as well as to establish better
sources of information in tax matters and understanding the
need
of
mutual
collaboration,
in
order
to
sanction
infringements to public and social rules, related to tax
evasion, have agreed to render assistance as stated in this
Agreement for the exchange of Tax Information.
1.2. The information shall be exchanged to achieve the
purposes of this Agreement, within the framework of the
strictest
reciprocity,
under
full
responsibility
and
independently if the person to which the information refers
or in whose possession this information is, is a resident or
a national of a Contracting State.
1.3. The mutual assistance brought among the Contracting
States of this Agreement, shall be in accordance with and
subjected to the limitations their respective laws and other
domestic provisions establish.
1.4. The requests for assistance submitted in the terms of
this Agreement, shall be executed pursuant to the provisions
of point 1.3 except that:
a) The execution of the request implies that the requested
State exceeds in its powers, is forbidden by the legal
provisions in force in such State or the information
requested cannot be obtained pursuant to the laws or in the
normal course of the administration of the requested State or
of the other Contracting State, in which case, the competent
authorities of both Contracting States shall consult each
other to agree alternative legal means allowing to render the
referred assistance.
b) The execution of the request is, in the requested
States opinion, contrary to its homeland security or public
order.
c) Upon providing the information, company, industrial,
commercial, professional secrecies or commercial procedures
may be disclosed.
d) Upon supplying the information requested by the
requesting State to administer or execute a provision of its
tax laws or any requirement related to these ones, a national
of the requested State is discriminated. A provision of its
tax laws or a requirement related to those ones is considered
discriminatory against a national of the requested State,
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when this is different or more cumbersome for a national of

the requested State in relation to a national of the
requesting State under the same conditions. For these
effects, a national of the requesting State who is subjected
to taxation under the worldwide income criterion, is not
under the same conditions that a national of the requested
State who is not subjected to such taxation. The provisions
of this subsection shall not be construed in the sense that
it prevents the exchange of information in relation to taxes
established by the Government of Peru or by the Government of
the United States of America, about profits of branches, the
surpluses by interests of a branch or about the income
foreign insurance companies receive on account of premiums.
e) The request does not comply with the provisions of this
Agreement.
1.5. The Contracting States shall render assistance among
them through the exchange of information to which section 4
refers and through those supplementary measures which the
competent authorities may agree pursuant to section 5 of this
Agreement.
SECTION 2
TAXES TO WHICH THIS AGREEMENT APPLIES
2.1. The Agreement shall be applied to the following taxes
established by or on behalf of a Contracting State:
a) In
the
case
of
the
Republic
of
Peru,
those
administrated
by
the
National
Superintendency
of
Tax
Administration in the taxes stated as follows:
i) Income tax (Income and others)
ii) Consumption Tax (Sale Tax, Selective Consumption Tax
and others).
iii) Equity Taxes (Personal Net Equity, Corporate Net Worth
and others).
iv) Transfer tax.
b) In the case of the United States of America, those
administrated by the Federal Government and which are stated
as follows:
i) Federal Income taxes.
ii) Federal income taxes of those who are self-employed.
iii) Federal transfer taxes destined to avoid Income Tax.
iv) Federal inheritance and donation taxes.
v) Federal Consumption taxes.
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2.2. This Agreement shall be applied, likewise, to any tax

established subsequently to the date of the signature of the
Agreement, besides to the taxes in force or in substitution
thereof. The competent authority of each Contracting State
shall notify the competent authority of the other State about
any change made in the laws which may affect the obligations
of such State pursuant to the Agreement.
2.3. This Agreement shall not be applied to the extent
that an action or proceeding related to the taxes contained
in this Agreement has prescribed pursuant to the laws of the
requesting State.
2.4. This Agreement shall not be applied to taxes by
States, Municipalities, Regions or other political subdivisions or possessions which are under the jurisdiction of
a Contracting State.
SECTION 3
DEFINITIONS
3.1. For the purposes of this Agreement, shall mean:
a) As competent authority:
i) In the case of the Republic of Peru, the National
Superintendent of Tax Administration.
ii) In the case of the United States of America, Secretary
of the Treasury or his/her Representative.
b) As national:
i) In the case of the Republic of Peru, any natural
person, community property, undivided inheritance or legal
entity or other entities which pursuant to the Peruvian tax
laws has corporate existence and the condition of domiciled
in the country.
ii) In the case of the United States of America, any
American
citizen
and
any
legal
entity,
partnership,
corporation, trust, inheritance, association or other entity
whose corporate existence is derived from the laws in force
in the United States of America.
c) As person:
Any natural person or legal entity, including societies,
corporations, trusts, associations, inheritances or other
legal entity.
d) As Tax:
Shall mean any tax to which this Agreement is applied.
e) As Information:
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Any information or statement, whatever the form is and

which may be relevant, or essential for the administration
and application of taxes, including among others:
ii) Documents, records or other personal properties and
real estate which are under the possession of a person or
Contracting State.
f) As requesting State and requested State:
The
Contracting
State
requesting
or
receiving
the
information and the Contracting State providing or to which
such information is requested, respectively.
g) To determine the geographical area within which this
Agreement shall be applied, Peru shall mean the Republic
of Peru, comprising any domestic territory, its waters,
jurisdictional airs and any place where it has interference;
and United States shall mean the United States of
America, included Puerto Rico, The Virgin Islands, Guam and
any other possession or territory of the United States.
3.2. Any term not defined in this Agreement shall have the
meaning attributed in the laws of the Contracting State,
regarding the taxes which are subject matter of this
Agreement; unless the context requests otherwise or the
competent authorities agree a common meaning pursuant to the
provisions of section 5.
SECTION 4
EXCHANGE OF INFORMATION
4.1. The competent authorities shall exchange information
with the purpose of administering and applying the domestic
laws of the Contracting States, corresponding to taxes
comprised in this Agreement including information for the
determination, liquidation and collection of taxes, the
encashment and the execution of tax credits, as well as for
the investigation or prosecution of tax crimes or crimes
contravening the tax administration.
4.2. The competent authorities of the Contracting States
automatically shall transmit information among them, in order
to fulfill the provisions of point 4.1. The competent
authorities shall determine which information shall be
exchanged pursuant to this paragraph and the procedures which
shall be used for the exchange of such information.
shall transmit, the respective authority of the other State,
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such information which it is aware of which may be relevant

and significantly contribute to fulfill the provisions of
point
4.1.
The
competent
authorities
shall
determine
information which shall be exchanged pursuant to this point,
adapting
and
implementing
the
necessary
measures
and
procedures to guarantee that the information is provided to
the competent authority of the other Contracting State.
4.4. The competent authorities of the requested State
shall supply the information, prior request of the competent
authority of the requesting State, for the purposes mentioned
in point 4.1. When the information available in the tax
archives of the requested State is not enough to comply with
the request, such State shall take all the pertinent measures
to provide the requesting State the information requested,
taking into consideration the following:
a) The requested State has the power to:
i) Examine books, documents, records, and other personal
properties or documents about real estate which may be
relevant or essential for the investigation.
ii) Question any person who is aware of or who is in
possession, custody or control of information which may be
pertinent or essential for the investigation; as well as to
oblige him/her to appear in a determined date or place, make
an statement under oath and hand in books, documents, records
or other personal properties or documents about real estate.
b) The laws or practices of the requested State, relating
to the release of information from banks, representatives or
people acting as agents or trustees o regarding the rights of
property of interests of a person (who is not an natural
person), shall not prevent in any other way the powers of the
requested State described in subsection a). The competent
authorities of the Contracting States shall be empowered to
get and provide information despite such laws and practices
about release.
c) The privileges granted by the laws or practices of the
requesting State shall not be applied in the requested State
upon the execution of a request. The request for privileges
based on the laws or practices of the requesting State shall
be exclusively determined by the courts of this State and the
request for privileges based on the laws or practices of the
requested State shall be exclusively determined by the courts
of such other State.
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4.5. When the information is requested by a Contracting

State pursuant to the provisions of point 4.4, the requested
State shall obtain and provide it in the same manner in which
it would do it if the Tax of the requesting State were the
tax of the requested State and would has been established by
the latter. However, if the competent authority of the
requesting State specifically requests it, the requested
State shall:
a) Indicate the date and place to take an statement under
oath and/or for the exhibition of books, documents, records
or other personal properties and to supervise real estate:
b) Allow the presence of those individuals to whom the
competent authority of the requesting State states as
interested in the execution of the request or affected by it,
such as the liable party for Peru and liable party and
accused party for the United States, its legal representative
and the individuals in charge of the administration and
execution of the domestic laws of the requesting State to
which this Agreement refers, and a commissioner or officer to
rule about the admissibility of the evidences or decide
matters of privileges pursuant to the laws of the requesting
State.
c) Offer the individuals to whom subsection b) refers, the
opportunity to directly make questions or through the
executing authority to the natural person making a statement
or exhibiting books, documents, records or other personal
properties or documents about real estate.
d) Obtain the originals and without amendments of books,
documents, records or other personal properties or documents
about real estate.
e) Obtain or provide true and authentic copies of the
originals and without amendments of books, documents and
records.
f) Determine the authenticity of books, documents, records
and other properties submitted.
g) Question the individual submitting books, documents,
records and other properties about the purpose for which the
material submitted is kept or was kept and the manner in
which such keeping is carried out or was carried out.
h) Allow the competent authority of the requesting State
to make questions in writing about the purpose, which the
individual submitting books, documents, records and other
properties shall answer.
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i) Certify that the procedures requested by the competent

authority of the requesting State were followed or that could
not be followed, with the explanation of the deviation and
the reasons which caused it.
j) Make any other act which is not contrary to the laws of
the requested State or which does not disagree its
administrative practice.
d) of such other State.
4.6. Except as set forth in point 1.4, the provisions
contained in the preceding paragraphs shall be construed in
the sense that they imposed a Contracting State, the
obligation of using all the legal means and deploy its better
efforts to execute a request. A Contracting State shall, at
its discretion, adopt measures to obtain and transmit the
other State information pursuant to the provisions of point
1.4 it is not obliged to transmit.
4.7. The competent authority of the requested State shall
allow the representatives of the requesting State to appear
at the requested State to interview individuals and examine
books and records with the consent of individuals with whom
they are going to get in contact.
4.8. Any information a Contracting State receives shall be
secret in the same manner as the information obtained under
the domestic laws of such State, and only shall be disclosed
to authorities, including administrative or judicial bodies,
participating in the determination, liquidation, collection
and administration of the taxes subject matter of this
Agreement, in the encashment of tax credits, in the extension
of laws, in the prosecution of tax crimes or in the
resolution of administrative resources regarding such taxes,
as well as the inspection of the above-mentioned. Such
authorities only shall use the information for such purposes,
which only shall be disclosed in public proceedings before
courts or in judicial resolutions.
SECTION 5
MUTUAL AGREEMENT PROCEEDING
shall agree to put into practice a program destined to
achieve the purpose of this Agreement. Such program may
include, besides the exchanges of information to which
section 4 refers, other measures to improve the compliance of
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the provisions in tax matters, such as the exchange of

technical knowledge, the development of new audit techniques
(including
simultaneous
audits
and
simultaneous
investigations of crimes, in their jurisdictions and by their
competent authorities), the identification of the new areas
of tax evasion and joint studies about such sectors.
shall try to solve any difficulty or doubt derived from the
construction or application of this Agreement. In accordance
with the foregoing, the competent authorities may agree to
give a common meaning to a term and determine when the costs
are extraordinary for the purposes of section 6.
may directly communicate with the purposes of reaching a
conformity agreement pursuant to the provisions of this
section.
SECTION 6
COSTS
6.1. The ordinary costs incurred due to the assistance
provided shall be defrayed by the requesting State, unless
the competent authorities of the Contracting States agree
otherwise.
SECTION 7
EFFECTIVE DATE
7.1. This Agreement shall come into effect upon the
exchange of notes by the representatives of the Contracting
States duly authorized to that effect, through which they
mutually confirm they have complied with all the necessary
constitutional and legal requirements to execute this
Agreement.
SECTION 8
AMENDMENT AND TERMINATION
8.1. This Agreement may be modified or amended by means of
agreement among the Contracting States.
8.2. This Agreement shall remain effective insofar as it
is not terminated by one of the Contracting States. Any
Contracting State may terminate it at any time after its
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effective date, prior notice by diplomatic recourse, with a

minimum of three months in advance.
Signed in the city of Cartagena, Colombia, on February 15,
1990, in Spanish and English, whose texts are equally
authentic.
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Sandra Pamela Tuesta Quispe

14/08/92 .- D.L. No. 25665.- The Agreement for the Exchange

Sandra Pamela Tuesta Quispe

1.1. The Government of the Republic of Peru and the

Sandra Pamela Tuesta Quispe

when this is different or more cumbersome for a national of

Sandra Pamela Tuesta Quispe

2.2. This Agreement shall be applied, likewise, to any tax

Sandra Pamela Tuesta Quispe

Any information or statement, whatever the form is and

Sandra Pamela Tuesta Quispe

such information which it is aware of which may be relevant

Sandra Pamela Tuesta Quispe

4.5. When the information is requested by a Contracting

Sandra Pamela Tuesta Quispe

i) Certify that the procedures requested by the competent

Sandra Pamela Tuesta Quispe

the provisions in tax matters, such as the exchange of

Sandra Pamela Tuesta Quispe

effective date, prior notice by diplomatic recourse, with a

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