what are the benefits of Peru as a destination for venture capital and private equity?
EO: An important aspect is a notably improved tax system. Before last October, investment funds had to pay income taxes on the profits the fund generated, a practice that obviously didn’t stimulate the formation of investment funds. Under Peru’s new legal regime, shareholders are the ones that pay income taxes for their profits. It is important to note as well that profits obtained from dividends, interests and capital gains through any kind of transaction done at centralized stock exchange mechanisms are now exonerated from paying income and value-added taxes, so private equity investors have incentives to invest in Peruvian papers. In addition to the tax system benefits, which still have to be improved to allow the venture capital and private equity industries to consolidate, we must mention that many local small and medium enterprises are showing both impressive economic results and the implementation of good corporate governance practices. LAVCA: How can LAVCA and ProCapitales work
