Keiko Fujimori's Tax Proposals.

Amid a tight presidential count in Peru, where candidate Keiko Fujimori appears set to be elected President, we review the main tax proposals contained in her government plan for the 2026-2031 period.

Fujimori's tax plan focuses on reducing the fiscal deficit to 1%, broadening the tax base without raising rates, and granting tax benefits to small and medium-sized enterprises as well as to various strategically important economic sectors, promoting innovation and sustainable development.

The plan also proposes a reform of tax administration, with an emphasis on modernizing and digitizing the National Superintendency of Customs and Tax Administration (SUNAT).

To present the main measures in Fujimori's government plan, we have organized them into the following categories:

1. SMEs and Young Entrepreneurs

Recognizing the economic importance of micro and small businesses in Peru and the need to facilitate the launch of new ventures by young people, the plan proposes the following measures:

• License Zero: The "License Zero" policy aims for rapid formalization through a single electronic window that allows businesses to begin commercial operations without delays or unnecessary administrative costs, such as corporate registration, municipal permits, civil defense clearance, or trademark registration.
• Lower Setup Costs and Access to Capital: Formalization will be accompanied by temporary tax benefits, reduced initial registration costs, and preferential access to credit lines.
• Temporary Income Tax Exemption for Young Founders: Ventures led by young people, whether as sole proprietorships or youth partnerships, will receive a full income tax exemption during their first three years of operation.
• Intern Tax Credit: The plan proposes a 50% tax credit on amounts paid to pre-professional and professional interns, in order to promote early work experience.
• Hiring Older Workers: Specific tax incentives will be created for companies that hire older adults, promoting intergenerational employment and leveraging their experience in small and medium-sized businesses.

2. Boosting Mining

The plan notes that the tax burden on mining is high, reaching approximately 47%, which exceeds countries such as Canada, Australia, and Chile. This inflexible tax structure discourages new exploration.

To address this, the plan presents the following measures:

• Profit Reinvestment Incentives: To mitigate the current tax burden of around 47%, the plan offers direct tax relief to companies that reinvest their capital in new exploration or in expanding existing operations.
• National Mining Innovation Fund and Incentives for Mining Modernization: The modernization of mining operations through new automation and traceability technologies that reduce environmental impact will receive tax incentives backed by the new National Mining Innovation Fund.
• Strategic Infrastructure Financed through Taxes via the Works for Taxes (OxI) Mechanism: Mining companies will be able to direct their tax payments toward building and improving public infrastructure linked to their areas of influence or supply chains (such as road access, energy networks, or basic services). This is achieved through the Works for Taxes (OxI) mechanism, whereby private companies finance and execute public investment projects against their income tax payments.
• Supply Chain Incentives: The plan will grant tax and non-tax incentives to mining companies that hire regional services and integrate local suppliers and SMEs into their supply chain.

3. Strategic Sectors

With respect to strategic sectors—textiles, footwear, metalworking, agribusiness, aquaculture, and tourism—the program includes measures aimed at attracting investment, promoting productive linkages, and encouraging higher value-added activities.

• Special Economic Zones (SEZs): Newly created Special Economic Zones will offer temporary benefits targeted at high value-added manufacturing, such as textiles, metalworking, pharmaceuticals, and agribusiness, among others.
• Tourism Incentives: Tourism projects will be able to recover capital more quickly through early VAT refunds and accelerated depreciation.
• Regional Flight Incentives: Airport fees will be reduced and direct regional flights promoted through tax incentives.
• Infrastructure in Exchange for Taxes (OxI): Companies in the aquaculture and tourism sectors will be able to direct their tax payments toward building or upgrading key public infrastructure for their own business (such as fishing docks, tourist access roads, or basic services).
• Fisheries Innovation: The creation of the National Fisheries and Aquaculture Innovation Fund will include tax incentives and credit lines for the sector to modernize its equipment, processing, and traceability systems.

4. Industry and Foreign Trade

The caps on benefits for research, development, and innovation (R&D&I) will be updated, making it fiscally less expensive for investors to modernize equipment, automate production processes, or develop new technologies.

5. Sustainability

• Tax Incentive Scheme for Green Companies: Companies will be able to deduct up to 50% of their investment in recycling processes, energy efficiency, and environmental certifications.
• Implementation of a Recycling System: Purchasing inputs from formalized recyclers will grant tax benefits.
• Promotion of Low-Emission Fleets: Contracting transportation fleets with low emissions (such as electric trucks or LNG vehicles) will receive temporary tax incentives.

6. Housing and Infrastructure for Children and Adolescents

Real estate development and infrastructure investment is proposed through the OxI mechanism. Companies from any sector will be able to apply their tax payments toward building or improving educational infrastructure (technology classrooms, restrooms, and potable water in schools). This approach seeks to optimize the tax burden while directly and visibly fulfilling corporate social impact goals.

Finally, the fiscal strategy of Fujimori's government plan holds that revenue growth will come from regulatory simplification, intensive use of digital tools by SUNAT, a reduction in informality, and projected economic growth (toward 6%), avoiding any increase in the tax burden on the formal sectors that already comply—thereby financing the implementation of the government plan.

For more information, you can access the Keiko Fujimori Government Plan