International treaty

2025 UK-Peru Double Taxation Convention — not in force

Updated 21 March 2025

UK-Peru Double Taxation Convention signed in London on 20 March 2025 has not yet entered into force. This shall happen upon completion of the procedures required by the law of both countries for the bringing into force of this Convention.

An announcement will be made when these procedures have been completed.

Convention between the United Kingdom of Great Britain and Northern Ireland and the Republic of Peru for the elimination of double taxation with respect to taxes on income and on capital gains and the prevention of tax evasion and avoidance

The United Kingdom of Great Britain and Northern Ireland and the Republic of Peru,

Desiring to further develop their economic relationship and to enhance their co-operation in tax matters,  

Intending to conclude a Convention for the elimination of double taxation with respect to taxes on income and on capital gains without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Convention for the indirect benefit of residents of third States), have agreed as follows.

ARTICLE 1 — Persons covered

1. 1. This Convention shall apply to persons who are residents of one or both of the Contracting States.

2. 2. For the purposes of this Convention, income or gain derived by or through an entity or arrangement that is treated as wholly or partly fiscally transparent under the tax law of either Contracting State shall be considered to be income or gain of a resident of a Contracting State but only to the extent that:

   1. a) the income or gain is treated, for purposes of taxation by that State, as the income or gain of a resident of that State
   2. b) the entity or arrangement is formed under and governed by the law of:
      1. (i) either Contracting State; or

      2. (ii) a third jurisdiction that both:

         1. (aa) has an agreement in force containing provisions for the exchange of information on tax matters with the Contracting State from which the income or gain is derived; and
         2. (bb) treats the entity or arrangement as wholly fiscally transparent under the tax law of that third jurisdiction.

3. 3. This Convention shall not affect the taxation, by a Contracting State, of its residents except with respect to the benefits granted under paragraph 2 of Article 9 and Articles 19, 20, 22, 23, 24 and 27.

ARTICLE 2 — Taxes covered

1. 1. This Convention shall apply to taxes on income and on capital gains imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

2. 2. There shall be regarded as taxes on income and on capital gains all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property.

3. 3. The existing taxes to which the Convention shall apply are in particular:
   1. a) in Peru, the income taxes imposed under the Income Tax Act (Ley del Impuesto a la Renta) and under the Legislative Decree that creates the Micro and Small Businesses Income Tax Regime (Decreto Legislativo que crea el Régimen MYPE Tributario del Impuesto a la Renta) (hereinafter referred to as ‘Peruvian Tax’); and
   2. b) in the United Kingdom:
      1. (i) the Income Tax;
      2. (ii) the Corporation Tax; and
      3. (iii) the Capital Gains Tax
         
         (hereinafter referred to as ‘United Kingdom Tax’).
         
         
4. 4. The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.

ARTICLE 3 — General definitions

1. 1. For the purposes of this Convention, unless the context otherwise requires:
   1. a) the term ‘Peru’ means the Republic of Peru and, for the purposes of determining the geographical scope of application of this Convention, means the mainland territory, the islands, the maritime areas and the air space above them, under sovereignty or sovereign rights and jurisdiction of Peru, in accordance with the provisions of the Political Constitution of Peru (Constitución Política del Perú), and both other relevant domestic law and international law;
   2. b) the term ‘United Kingdom’ means Great Britain and Northern Ireland but, when used in a geographical sense, means the territory and territorial sea of Great Britain and Northern Ireland and the areas beyond that territorial sea over which Great Britain and Northern Ireland exercise sovereign rights or jurisdiction in accordance with both their domestic law and international law;
   3. c) the terms ‘a Contracting State’ and ‘the other Contracting State’ mean Peru or the United Kingdom, as the context requires;
   4. d) the term ‘person’ includes an individual, a company and any other body of persons;
   5. e) the term ‘company’ means any body corporate or any entity that is treated as a body corporate for tax purposes;
   6. f) the terms ‘enterprise of a Contracting State’ and ‘enterprise of the other Contracting State’ mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
   7. g) the term ‘international traffic’ means any transport by a ship or aircraft except when the ship or aircraft is operated solely between places in a Contracting State and the enterprise that operates the ship or aircraft is not an enterprise of that State;
   8. h) the term ‘competent authority’ means:
      1. (i) in Peru, the Minister of Economy and Finance or his authorized representative; and
      2. (ii) in the United Kingdom, the Commissioners for His Majesty’s Revenue and Customs or their authorised representative;
   9. i) the term ‘national’ means:
      1. (i) in relation to Peru, any individual possessing the nationality of Peru; and any legal person or association deriving its status as such from the laws in force in Peru;
      2. (ii) in relation to the United Kingdom, any British citizen, or any British subject not possessing the citizenship of any other Commonwealth country or territory, provided he has the right of abode in the United Kingdom; and any legal person, partnership or association deriving its status as such from the laws in force in the United Kingdom;
   10. (j) the term ‘recognised pension fund’ of a State means an entity or arrangement established in that State and:
       1. (i) that is established and operated exclusively or almost exclusively to administer or provide retirement or similar benefits to individuals and that is regulated as such by that State or one of its political subdivisions or local authorities; or
       2. (ii) that is established and operated exclusively or almost exclusively to invest funds for the benefit of entities or arrangements referred to in subdivision (i).
2. 2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires or the competent authorities agree to a different meaning pursuant to the provisions of Article 24, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which this Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

ARTICLE 4 — Resident

1. 1. For the purposes of this Convention, the term resident of a ‘Contracting State’ means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of incorporation, place of management or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income or capital gains from sources in that State.

2. 2. The term ‘resident of a Contracting State’ includes:

   1. a) a recognised pension fund established in that State; and
   2. b) an organisation that is established and is operated exclusively for religious, charitable, scientific, cultural, educational, artistic, literary, political, sports, guild, social assistance or housing purposes (or for more than one of those purposes) and that is a resident of that State according to its laws, notwithstanding that all or part of its income or gains may be exempt from tax under the domestic law of that State.
3. 3. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:
   1. a)he shall be deemed to be a resident only of the State in which he has a permanent home available to him — if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
   2. b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
   3. c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;
   4. d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
4. 4. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to determine by mutual agreement the Contracting State of which such person shall be deemed to be a resident for the purposes of the Convention, having regard to its place of effective management, the place where it is incorporated or otherwise constituted and any other relevant factors. In the absence of such agreement, the person shall not be considered a resident of either Contracting State for the purposes of claiming any benefits provided by the Convention, except those provided by Articles 22, 23 and 24.

ARTICLE 5 — Permanent establishment

1. 1. For the purposes of this Convention, the term ‘permanent establishment’ means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. 2. The term ‘permanent establishment’ includes especially:
   1. a) a place of management;
   2. b) a branch;
   3. c) an office;
   4. d) a factory;
   5. e) a workshop; and
   6. f) a mine, an oil or gas well, a quarry or any other place relating to the exploration for, or the exploitation or the extraction of natural resources.
3. 3. The term ‘permanent establishment’ shall also include:
   1. a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only if such site, project or activities last more than six months; and
   2. b) the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue within a Contracting State for a period or periods aggregating more than 183 days in any 12-month period commencing or ending in the fiscal year concerned.
      
      The duration of activities under subparagraphs a) and b) shall be determined by aggregating the periods during which activities are carried on in a Contracting State by closely related enterprises, provided that the activities of such a closely related enterprise in that Contracting State are connected with the activities carried on in that Contracting State by its closely related enterprises. The period during which two or more closely related enterprises are carrying on concurrent activities shall be counted only once for the purpose of determining the duration of activities.
      
      
4. 4. Notwithstanding the preceding provisions of this Article, the term ‘permanent establishment’ shall be deemed not to include:
   1. a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
   2. b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
   3. c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
   4. d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;
   5. e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity;
   6. f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) to e),
      
      provided that such activity or, in the case of subparagraph f), the overall activity of the fixed place of business, is of a preparatory or auxiliary character.
      
      
5. 5. Paragraph 4 shall not apply to a fixed place of business that is used or maintained by an enterprise if the same enterprise or a closely related enterprise carries on business activities at the same place or at another place in the same Contracting State and
   1. a) that place or other place constitutes a permanent establishment for the enterprise or the closely related enterprise under the provisions of this Article, or
   2. b) the overall activity resulting from the combination of the activities carried on by the two enterprises at the same place, or by the same enterprise or closely related enterprises at the two places, is not of a preparatory or auxiliary character,
      
      provided that the business activities carried on by the two enterprises at the same place, or by the same enterprise or closely related enterprises at the two places, constitute complementary functions that are part of a cohesive business operation.
      
      
6. 6. Notwithstanding the provisions of paragraphs 1 and 2 but subject to the provisions of paragraph 7, where a person is acting in a Contracting State on behalf of an enterprise and, in doing so, habitually concludes contracts, or habitually plays the principal role leading to the conclusion of contracts that are routinely concluded without material modification by the enterprise, and these contracts are:
   1. a) in the name of the enterprise, or
   2. b) for the transfer of the ownership of, or for the granting of the right to use property owned by that enterprise or that the enterprise has the right to use, or
   3. c) for the provision of services by that enterprise,
      
      that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business (other than a fixed place of business to which paragraph 5 would apply), would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
      
      

7. 7. Paragraph 6 shall not apply where the person acting in a Contracting State on behalf of an enterprise of the other Contracting State carries on business in the first- mentioned State as an independent agent and acts for the enterprise in the ordinary course of that business. Where, however, a person acts exclusively or almost exclusively on behalf of one or more enterprises to which it is closely related, that person shall not be considered to be an independent agent within the meaning of this paragraph with respect to any such enterprise.

8. 8. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

9. 9. For the purposes of this Article, a person or enterprise is closely related to an enterprise if, based on all the relevant facts and circumstances, one has control of the other or both are under the control of the same persons or enterprises. In any case, a person or enterprise shall be considered to be closely related to an enterprise if one possesses directly or indirectly more than 50 per cent of the beneficial interest in the other (or, in the case of a company, more than 50 per cent of the aggregate vote and value of the company’s shares or of the beneficial equity interest in the company) or if another person or enterprise possesses directly or indirectly more than 50 per cent of the beneficial interest (or, in the case of a company, more than 50 per cent of the aggregate vote and value of the company’s shares or of the beneficial equity interest in the company) in the person and the enterprise or in the two enterprises.

ARTICLE 6 — Income from immovable property

1. 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

2. 2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.

3. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4. 4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

ARTICLE 7 — Business profits

1. 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

2. 2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

3. 3. In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4. 4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

5. 5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

6. 6. Where profits include items of income or capital gains which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8 — International shipping and air transport

1. 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.

2. 2. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic include:
   1. a) profits from the rental on a bareboat basis of ships or aircraft where such rental is incidental to the operation of ships or aircraft in international traffic;
   2. b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise where such use, maintenance or rental, as the case may be, is incidental to the operation of ships or aircraft in international traffic; and
   3. c) interest on funds directly connected with the operation of ships or aircraft in international traffic.
3. 3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9 — Associated enterprises

1. 1. Where:
   1. a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or
   2. b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,
      
      and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
      
2. 2. Where a Contracting State includes in the profits of an enterprise of that State ‑ and taxes accordingly ‑ profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first‑mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.

ARTICLE 10 — Dividends

1. 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2. 2. However, dividends paid by a company which is a resident of a Contracting State may also be taxed in that State and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:
   1. a) 10 per cent of the gross amount of the dividends, except as provided in subparagraph b);
   2. b) 15 per cent of the gross amount of the dividends where those dividends are paid out of income (including gains) derived directly or indirectly from immovable property within the meaning of Article 6 by an investment vehicle which distributes most of this income annually and whose income from such immovable property is exempted from tax.
      
      This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
      
3. 3. The term “dividends” as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as any other item of income which is treated as income from shares by the taxation laws of the State of which the company making the distribution is a resident.
4. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
5. 5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
6. 6. Where an enterprise of a Contracting State has a permanent establishment in the other Contracting State, the profits attributable to the permanent establishment may be subject to an additional tax in that other Contracting State according to the laws of that other Contracting State, in addition to the ordinary tax which is imposed on such profits, but the additional tax so charged shall not exceed 10 per cent of the amount of the profits as computed after the deduction of the ordinary tax is given.

ARTICLE 11 — Interest

1. 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. 2. However, interest arising in a Contracting State may also be taxed in that State and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
3. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State if:
   1. a) the beneficial owner of the interest is that other State or the central bank, a political subdivision or local authority thereof;
   2. b) the interest is paid by the State in which the interest arises or by a political subdivision, local authority thereof, or by the central bank of that State;
   3. c) the interest is paid in respect of a loan, debt-claim or credit that is guaranteed or insured by that other State or by a political subdivision, local authority thereof, or the central bank of that State.
4. 4. The term ‘interest’ as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures as well as other income which is treated as income from money lent by the laws of the Contracting State in which the income arises. The term shall not include any item which is treated as a dividend under the provisions of Article 10.
5. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt‑claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
6. 6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether the payer is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
7. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest paid exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last‑mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

ARTICLE 12 — Royalties

1. 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. 2. However, royalties arising in a Contracting State may also be taxed in that State and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 15 per cent of the gross amount of the royalties.

3. 3. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including computer software, cinematograph films, any patent, trademark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience (know-how).

4. 4. The provisions of paragraphs 1 and 2  shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein,  and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. 5. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties, whether the payer is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

6. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties paid exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last‑mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

ARTICLE 13 — Capital gains

1. 1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

2. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

3. 3. Gains that an enterprise of a Contracting State that operates ships or aircraft in international traffic derives from the alienation of such ships or aircraft, or of movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that Contracting State.

4. 4. Gains derived by a resident of a Contracting State from the alienation of shares or comparable interests, such as interests in a partnership or trust, may be taxed in the other Contracting State if, at any time during the 365 days preceding the alienation, these shares or comparable interests derived more than 50 per cent of their value directly or indirectly from immovable property, as defined in Article 6, situated in that other Contracting State.

5. 5. Gains derived by a resident of a Contracting State from the direct or indirect alienation of shares or other rights of a company which is a resident of the other Contracting State may be taxed in that other Contracting State if the alienator, at any time during the 365 days preceding the alienation, owned directly or indirectly shares or other rights representing at least 20 per cent of the capital of that company.

6. 6. Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3, 4 and 5 shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14 — Independent personal services

1. 1. Income derived by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent character performed in the other Contracting State shall be taxable only in the first-mentioned Contracting State except in the following circumstances, when such income may also be taxed in the other Contracting State:
   1. a)the individual has a fixed base regularly available to him in the other Contracting State for the purpose of performing the activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or
   2. b) the individual is present in the other Contracting State for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; in that case, only so much of the income as is derived from the activities performed in that other State may be taxed in that State.
2. 2. The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

ARTICLE 15 — Income from employment

INCOME FROM EMPLOYMENT

1. 1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first‑mentioned State if:
   1. a)the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; and
   2. b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
   3. c)the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
3. 3. Notwithstanding the preceding provisions of this Article, remuneration derived by a resident of a Contracting State in respect of an employment, as a member of the regular complement of a ship or aircraft, that is exercised aboard a ship or aircraft operated in international traffic, other than aboard a ship or aircraft operated solely within the other Contracting State, shall be taxable only in the first-mentioned State.

ARTICLE 16 — Directors’ fees

Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

ARTICLE 17 — Entertainers and sportspersons

1. 1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from that resident’s personal activities as such exercised in the other Contracting State, may be taxed in that other State. Income derived by an entertainer or a sportsperson who is a resident of a Contracting State from his personal activities relating to his reputation as an entertainer or sportsperson exercised in the other Contracting State may be taxed in that other State.

2. 2. Where income in respect of personal activities exercised by an entertainer or a sportsperson acting as such accrues not to the entertainer or sportsperson but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.

ARTICLE 18 — Pensions

Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to an individual who is a resident of a Contracting State, and is subject to tax in respect thereof in that State, shall be taxable only in that State.

ARTICLE 19 — Government services

1. 1.  a) Salaries, wages and other similar remuneration paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or political subdivision or local authority shall be taxable only in that State
   1. b) however, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
      1. (i) is a national of that State; or
      2. (ii) did not become a resident of that State solely for the purpose of rendering the services;
         
         and is subject to tax in that State on such salaries, wages and other similar remuneration.
2. 2.     a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
   1. b) however, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3. 3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages, pensions, and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof.

ARTICLE 20 — Students

Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first‑mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.

ARTICLE 21 — Other income

1. 1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

2. 2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

3. 3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Convention and arising in the other Contracting State may also be taxed in that other State.

4. 4. Where, by reason of a special relationship between the resident referred to in paragraph 1 and some other person, or between both of them and some third person, the amount of the income referred to in that paragraph exceeds the amount (if any) which would have been agreed upon between them in the absence of such a relationship, the provisions of this Article shall apply only to the last-mentioned amount.  In such a case, the excess part of the income shall remain taxable according to the laws of each Contracting State, due regard being had to the other applicable provisions of this Convention.

ARTICLE 22 — Elimination of double taxation

1. 1. In the case of Peru, double taxation shall be eliminated as follows:
   1. a) residents of Peru may use as a credit against Peruvian tax the United Kingdom tax paid on income and on capital gains taxed in accordance with the laws of the United Kingdom and the provisions of this Convention. Such credit shall not, in any case, exceed that part of the Peruvian tax which is attributable to the income or gains which may be taxed in the United Kingdom;
   2. b) where a company which is a resident of the United Kingdom pays a dividend to a company which is a resident of Peru that controls directly or indirectly at least 10 per cent of the voting power in the former company, the credit shall take into account the tax paid in the United Kingdom by the company in respect of the profits out of which such dividend is paid but only to the extent that the Peruvian tax exceeds the amount of the credit determined without reference to this subparagraph.
2. 2. Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom or, as the case may be, regarding the exemption from United Kingdom tax of a dividend arising in a territory outside the United Kingdom or of the profits of a permanent establishment situated in a territory outside the United Kingdom (which shall not affect the general principle hereof):
   1. a) Peruvian tax payable under the laws of Peru and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Peru (excluding in the case of a dividend tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Peruvian tax is computed;
   2. b) a dividend which is paid by a company which is a resident of Peru to a company which is a resident of the United Kingdom shall be exempted from United Kingdom tax when the exemption is applicable and the conditions for exemption under the law of the United Kingdom are met;
   3. c) the profits of a permanent establishment in Peru of a company which is a resident of the United Kingdom shall be exempted from United Kingdom tax when the exemption is applicable and the conditions for exemption under the law of the United Kingdom are met;
   4. d) in the case of a dividend not exempted from tax under sub-paragraph b) above which is paid by a company which is a resident of Peru to a company which is a resident of the United Kingdom and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit mentioned in sub-paragraph a) above shall also take into account the Peruvian tax payable by the company in respect of its profits out of which such dividend is paid.
      
      For the purposes of this paragraph, profits, income and gains owned by a resident of the United Kingdom which may be taxed in Peru in accordance with this Convention shall be deemed to arise from sources in Peru.
      

3. 3. Where in accordance with any provision of the Convention, income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

4. 4. The provisions of paragraph 1 shall not apply where the United Kingdom tax payable is in accordance with the provisions of this Convention solely because the income referred to in that paragraph is also income, profits or chargeable gains derived by a resident of the United Kingdom.

5. 5. The provisions of paragraph 2 shall not apply where the Peruvian tax payable is in accordance with the provisions of this Convention solely because the income, profits or chargeable gains referred to in that paragraph is also income derived by a resident of Peru.

ARTICLE 23 — Non-discrimination

1. 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected.

2. 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.

3. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, paragraph 6 of Article 12 or paragraph 4 of Article 21 apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.

4. 4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first‑mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first‑mentioned State are or may be subjected.

5. 5. Nothing contained in this Article shall be construed as obliging either Contracting State to grant to individuals not resident in that State any of the personal allowances, reliefs and reductions for tax purposes which are granted to individuals so resident or to its nationals.

ARTICLE 24 — Mutual agreement procedure

1. 1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 23, to that of the Contracting State of which he is national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

2. 2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with this Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

3. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.

4. 4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

ARTICLE 25 — Exchange of information

1. 1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.

2. 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to, the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorises such use.

3. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:
   1. a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
   2. b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
   3. c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public).

4. 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

5. 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.

ARTICLE 26 — Assistance in the collection of taxes

1. 1. The Contracting States shall lend assistance to each other in the collection of revenue claims.  This assistance is not restricted by Articles 1 and 2.  The competent authorities of the Contracting States may by mutual agreement settle the mode of application of this Article.

2. 2. The term “revenue claim” as used in this Article means an amount owed in respect of taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to this Convention or any other instrument to which the Contracting States are parties, as well as interest, administrative penalties and costs of collection or conservancy related to such amount.

3. 3. When a revenue claim of a Contracting State is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of collection by the competent authority of the other Contracting State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other State that met the conditions allowing that other State to make a request under this paragraph.

4. 4. When a revenue claim of a Contracting State is a claim in respect of which that State may, under its law, take measures of conservancy with a view to ensure its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State.  That other State shall take measures of conservancy in respect of that revenue claim in accordance with the provisions of its laws as if the revenue claim were a revenue claim of that other State even if, at the time when such measures are applied, the revenue claim is not enforceable in the first-mentioned State or is owed by a person who has a right to prevent its collection.

5. 5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by the competent authority of a Contracting State for purposes of paragraph 3 or 4 shall not, in that State, be subject to the time limits or accorded any priority applicable to a revenue claim under the laws of that State by reason of its nature as such.  In addition, a revenue claim accepted by the competent authority of a Contracting State for the purposes of paragraph 3 or 4 shall not, in that State, have any priority applicable to that revenue claim under the laws of the other Contracting State.

6. 6. Acts carried out by a Contracting State in the collection of a revenue claim accepted by the competent authority of that State for the purposes of paragraph 3 or 4 which, if they were carried out by the other Contracting State, would have the effect of suspending or interrupting the time limits applicable to the revenue claim in accordance with the laws of that other State shall have such effect under the laws of that other State. The competent authority of the first mentioned Contracting State shall inform the competent authority of the other Contracting State of having carried out such acts.

7. 7. Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall not be brought before the courts or administrative bodies of the other Contracting State.

8. 8. Where, at any time after a request has been made by the competent Authority of a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and remitted the relevant revenue claim to the first-mentioned State, the relevant revenue claim ceases to be:
   1. a) in the case of a request under paragraph 3, a revenue claim of the first-mentioned State that is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, or
   2. b) in the case of a request under paragraph 4, a revenue claim of the first-mentioned State in respect of which that State may, under its laws, take measures of conservancy with a view to ensure its collection
      
      the competent authority of the first-mentioned State shall promptly notify the competent authority of the other State of that fact and, at the option of the competent authority of the other State, the competent authority of the first-mentioned State shall either suspend or withdraw its request.
      
9. 9. In no case shall the provisions of this Article be construed so as to impose on a Contracting State the obligation:
   1. a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
   2. b)to carry out measures which would be contrary to public policy (ordre public);
   3. c) to provide assistance if the other Contracting State has not pursued all reasonable measures of collection or conservancy, as the case may be, available under its laws or administrative practice;
   4. d) to provide assistance in those cases where the administrative burden for that State is clearly disproportionate to the benefit to be derived by the other Contracting State;
   5. e) to provide assistance if that State considers that the taxes with respect to which assistance is requested are imposed contrary to generally accepted taxation principles.

ARTICLE 27 — Members of diplomatic missions and consular posts

Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

ARTICLE 28 — Entitlement to benefits

1. 1. Notwithstanding the other provisions of this Convention, a benefit under this Convention shall not be granted in respect of an item of income or a capital gain if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of this Convention.

2. 2. Where a benefit under this Convention is denied to a person under paragraph 1, the competent authority of the Contracting State that would otherwise have granted this benefit shall nevertheless treat that person as being entitled to this benefit, or to different benefits with respect to a specific item of income or a capital gain, if such competent authority, upon request from that person and after consideration of the relevant facts and circumstances, determines that such benefits would have been granted to that person in the absence of the transaction or arrangement referred to in paragraph 1. The competent authority of the Contracting State to which the request has been made will consult with the competent authority of the other State before rejecting a request made under this paragraph by a resident of that other State.

ARTICLE 29 — Entry into force

1. 1. Each of the Contracting States shall notify the other, through diplomatic channels, of the completion of the procedures required by its law for the bringing into force of this Convention. This Convention shall enter into force on the thirtieth day after the date of receipt of the latter notification.

2. 2. This Convention shall have effect:
   1. a) in Peru, with respect to taxes on income obtained and amounts paid, credited to an account, or accounted as an expense, on or after the first day of January of the calendar year immediately following that in which the Convention enters into force; and
   2. b) in the United Kingdom:
      1. (i) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January of the calendar year immediately following that in which the Convention enters into force;
      2. (ii) in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April next following the date on which this Convention enters into force;
      3. (iii) in respect of corporation tax, for any financial year beginning on or after 1st April next following the date on which this Convention enters into force.
3. 3. Notwithstanding the provisions of paragraph 2, the provisions of Articles 25 and 26 shall have effect from the following dates without regard to the date on which the taxes are levied or the taxable year to which the taxes relate:
   1. a) with respect to the provisions of Article 25, the date of entry into force of this Convention; and
   2. b) with respect to the provisions of Article 26, the date to be agreed between the Governments of the Contracting States through an exchange of diplomatic notes.
      
      The Governments of the Contracting States shall agree on the date referred to in subparagraph b) where Peru has put into place its internal basis and procedures for the implementation of Article 26 or where the provisions of any other international agreement to which Peru is a party that require Peru to lend assistance to another party thereto in the collection of revenue claims enter into effect. The competent authority of Peru shall notify the competent authority of the United Kingdom of such event immediately after it has happened.

ARTICLE 30 — Termination

This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate this Convention by giving written notice of termination through diplomatic channels to the other Contracting State at least six months before the end of any calendar year beginning after the expiry of five years from the date of entry into force of this Convention. In such event, this Convention shall cease to have effect:

1. a) in Peru, with respect to taxes on income obtained and amounts paid, credited to an account, or accounted as an expense, on or after the first day of January of the calendar year immediately following that in which the notice is given.
2. b) in the United Kingdom:
   1. (i) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January of the calendar year immediately following that in which the notice is given;
   2. (ii) in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April next following the date on which the notice is given;
   3. (iii) in respect of corporation tax, for any financial year beginning on or after 1st April next following the date on which the notice is given.
3. c) with respect to the provisions of Articles 25 and 26, on the first day of January of the calendar year immediately following that in which the notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention.           

Done in duplicate at London this 20th day of  March 2025 in the English and Spanish languages, each text being equally authentic.

For the United Kingdom of Great Britain and Northern Ireland:
David Lammy MP

For the Republic of Peru:
Elmer Schialer

PROTOCOL

At the moment of signing the Convention between the United Kingdom of Great Britain and Northern Ireland and the Republic of Peru for the Elimination of Double Taxation with respect to Taxes on Income and on Capital Gains and the Prevention of Tax Evasion and Avoidance (hereinafter referred to as ‘the Convention’), the United Kingdom and the Republic of Peru have agreed upon the following provisions, which shall form an integral part of the Convention.

1. 1. It is understood that nothing in the Convention shall be construed as restricting, in any manner, the application of any provisions of the law of a Contracting State which are designed to prevent the avoidance or evasion of taxes, as long as those provisions are in accordance with the object and purpose of the Convention.

2. 2. With reference to subparagraph d) of paragraph 1 of Article 3 of the Convention
   
   It is understood that the term ‘person’, in the case of Peru, includes estates in the course of administration (sucesiones indivisas) and matrimonial partnerships (sociedades conyugales).
   
3. 3. With reference to subparagraph j) of paragraph 1 of Article 3 of the Convention The term ‘recognised pension fund’ includes:
   1. a) in the case of Peru, pension funds regulated in the Unique Ordered Text of the Law of Private Administration System of Pension Funds, approved by Supreme Decree N° 054-97-EF, its regulation and complementary rules; the Consolidated Pension Reserves Fund (FCR) created by Legislative Decree N° 817; in the Military and Police Pension Regimes, the pension fund created by Decree Law N° 21021 and the Guarantee Fund for Military and Police Pensions created by Legislative Decree N° 1133;
   2. b) in the case of the United Kingdom, pension schemes (other than a social security scheme) registered under Part 4 of the Finance Act 2004, including pension funds or pension schemes arranged through insurance companies and unit trusts where the unit holders are exclusively pension schemes.
      
      The competent authorities may agree to include in the above, pension schemes of identical or substantially similar economic or legal nature which are introduced by way of statute or legislation in either State after the date of signature of the Convention.
      
4. 4. With reference to paragraph 6 of Article 5 of the Convention
   
   It is understood that a person plays the “principal role leading to the conclusion of contracts” in circumstances where responsibilities are shared between two or more persons, when:
   1. a) that person has led the assignment and that person’s actions in a Contracting State resulted directly in the conclusion of a contract, or
   2. b) that person’s activities in a Contracting State represent the majority of the total activities carried out that resulted directly in the conclusion of a contract.
      
      It is understood in particular that the conclusion of contracts by a person, or as a direct result of the actions of a person, must take place repeatedly for a dependent agent permanent establishment to be created in accordance with paragraph 6 of Article 5, and not merely in isolated cases, and that promotion or marketing activities that do not result directly in a conclusion of a contract are not activities capable of creating a permanent establishment in accordance with paragraph 6 of Article 5.
5. 5. With reference to paragraph 7 of Article 5 of the Convention
   
   It is understood that in banking, finance and insurance sectors, a person is acting in the ordinary course of its business as an agent when they perform intermediation activities sometimes as an agent for another enterprise and sometimes on their own account, in line with the common business practice in those sectors, provided that these intermediation activities are, in substance, indistinguishable from each other. Such a person will usually be considered to be acting independently unless the person acts exclusively or almost exclusively on behalf of one or more enterprises to which the person is closely related.
   
6. 6. With reference to paragraph 9 of Article 5 of the Convention
   
   It is understood that in relation to persons providing professional investment management services (investment managers), such persons will not usually be considered to be closely related in relation to the funds they manage where they are beneficially entitled, directly or indirectly, to no more than 20% of the fund’s profits during the taxable period.
   
7. 7. With reference to paragraph 3 of Article 7 of the Convention
   
   It is understood that, when computing the taxable income of a permanent establishment for the tax purposes of the Contracting State in which the permanent establishment is situated, the conditions for the deductibility of expenses which are attributable to the permanent establishment in accordance with the provisions of that paragraph are matters to be determined by the laws of that Contracting State, subject to the provisions of Article 23 of the Convention.
   
8. 8. With reference to Articles 10, 11 and 12 of the Convention
   
   If Peru concludes an agreement with a third jurisdiction containing provisions which limit taxation in Peru on an item of income described in paragraph 2 of Article 10, paragraph 2 of Article 11 or paragraph 2 of Article 12 of the Convention to a rate of tax lower than that provided for in the respective paragraph or exempt such item of income from tax in Peru, the Contracting States shall, at the request of the United Kingdom, enter into negotiations with a view to incorporating such lower rate of tax or exemption from tax into the Convention. The competent authority of Peru shall notify the competent authority of the United Kingdom of such event immediately after it has happened.
   
9. 9. With reference to paragraph 3 of Article 23 of the Convention
   
   It is understood that nothing in paragraph 3 of Article 23 of the Convention shall be construed as preventing Peru from applying the tax treatment described in subsection a.4) of Article 37 of the Income Tax Act.
   

10. 10. Nothing in the Convention shall preclude the application of tax stability contracts, signed under the provisions of Legislative Decrees (Decretos Legislativos) numbers 662, 757 and 109 and Acts (Leyes) numbers 26221, 27342, 27343 and 27909 of Peru, that are in force at the time of the signature of the Convention and regardless if the above-mentioned provisions are amended from time to time without changing their principle or the optional nature of entering into the tax stability contracts. A person that is a party to a contract which grants tax stability in accordance with the above-mentioned provisions shall, notwithstanding any rate of tax set out in the Convention, remain subject to the rates of tax stabilized by the contract while the tax stability is still in force.

11. 11. For the purposes of paragraph 3 of Article XXII (Consultation) of the General Agreement on Trade in Services, the Contracting States agree that, notwithstanding that paragraph, any dispute between them as to whether a measure falls within the scope of this Convention may be brought before the Council for Trade in Services, as provided by that paragraph, only with the consent of both Contracting States. Any doubt as to the interpretation of this paragraph shall be resolved under paragraph 3 of Article 24 of the Convention or, failing agreement under that procedure, pursuant to any other procedure agreed to by both Contracting States.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Protocol.

Done in duplicate at London this 20th day of March 2025 in the English and Spanish languages, each text being equally authentic.

For the United Kingdom of Great Britain and Northern Ireland:
David Lammy MP 

For the Republic of Peru:
Elmer Schialer