OUR PRACTICE AREAS

TAX LAW

Tax and corporate planning and international taxation:
Structuring and implementation of business projects, maximizing fiscal savings according to Law; planning related to foreign investments through agreements to avoid double taxation, among other mechanisms, and use of fiscal platforms that promote investments by non-residents in Peru.

This is accompanied by the definition of the most efficient and adequate legal strategy to establish, develop and make businesses grow in the country. We also offer permanent advisory services in the acquisition of projects, assets and companies, corporate structuring and reorganizations.

Advisory services in the acquisition and development of mining and energy projects on all their stages, including their environmental matters; planning related to investment in social responsibility, acquisition of surface rights, and negotiation of legal stability agreements.

Foreign trade planning:
Structuring of foreign trade operations related to large investment projects, with management of financial, contractual and logistic components, preventing operating contingencies under the strict application of free trade agreements and agreements to avoid double taxation, as well as rules and procedures in force in Peru.

Consulting:
Advice in the strict and timely compliance of material and formal tax liabilities.

Tax advocacy:
Design and implementation of advocacy strategies in tax audit and challenge proceedings, with successful results in the administrative and judicial stage.

Customs advocacy:
Design and implementation of advocacy strategies with sound legal positions and evidence, with successful results in any customs proceeding with the Peruvian Government.

Transfer Pricing:
Design and implementation of tax planning for MNE with their Peruvian associated companies. Advisory services in the review of Local File, Master File and Country by Country Report. Advice in audit and defense before the Peruvian Tax Administration. Advice in the design and negotiation of Advance Price Agreements with the Peruvian Tax Administration.

Work for Taxes:
Consulting and implementation services during the process of obtaining the Declaration of Feasibility of the Public Investment Project and day-to-day support during the pre-investment stage. Advice and legal support during the public tender for the selection of the financing and/or executor company and during the delivery of the final award for signing the Public Investment Agreement, as well as contracting other suppliers needed for the execution of the selected project, maximizing the benefits of the regime.

We actively attend the implementation of the regime in order to be effectively recognized all the invested concepts in the corresponding Public Investment Certificates, including the amendments to the investment amount that may occur during the stage of investment overseeing its timely and advantageous application.

TAX LAW: Successful cases

Tax Advocacy
• Successful advocacy in tax proceedings with some of the most onerous contingencies of the country in application of the "substance over form" principle (economic reality of transactions), related to the application of Rule XVI of the Tax Code.

• Successful advocacy regarding the correct application of “Rollback” clauses, changing the original criterion of the Tax Administration, according to which those clauses imply the granting of discounts that did not meet the requirements established by the Income Tax Law.

• Favorable result obtained in the Constitutional Court, in a constitutional rights action to declare null a final judgment issued by the Tax Court, recognizing the true nature of the legal-tax relationship.

• Successful defense in relation to the correct treatment of the special depreciation regime regulated in the General Mining Law applicable to mining companies that entered into a Legal Tax Stability Agreement. The Tax Court ruled that said special depreciation legal regime prevails over the requirements of having the depreciation recorded in the accounting.

Mining Projects:
• Tax and corporate planning, structuring, comprehensive tax advisory services and consulting related to Pierina, Lagunas Norte, Corani, La Granja and Zafranal mining projects, including the acquisition and expansion of the latter.

• Advisory services as international experts in ore concentrate foreign trade matters of San Cristóbal mine, located in Bolivia.

• Tax and corporate planning, structuring, comprehensive tax advisory services and consulting related to the execution of engineering, procurement, construction and management contracts related to Michiquillay, Quellaveco, Cerro Verde mining projects – expansion and Conga.

• Legal advice on the execution of Exploration Investment Agreements with the Ministry of Energy and Mines to access to the benefit of Definitive VAT Recovery Regime and in the preparation and approval of the corresponding Exploration Investment Program for a total investment of approximately US$500 million (40% of the total committed investment in our country in this type of agreements). Our advice includes the approval – by Ministerial Resolution – of the list of goods and services covered by the benefit of recovery of the more important mining projects at exploration phase in the country.

Power Projects
• Tax advisory services related to the financing of Cerro del Águila Project for the construction of one of its combined cycle power plants, as well as on restructuring and corporate planning in connection with the expansion of Chilca power plant, and the acquisition of Las Flores power plant.

• Corporate and tax advisory services focused on the alternatives to increase the participation in Latin America of the largest energy company of Spain.

Geothermal Projects
• Tax, mining and corporate advisory services, including consulting related to the execution of joint venture agreements and shareholders’ agreements for the exploration of areas for the potential exploitation of geothermal energy.

Social Investment Structuring
• "Alto Chicama Social Trust", in favor of the neighboring communities of the areas of influence of Lagunas Norte project.

• "Voluntary Mining Contribution", established by the Peruvian State intended for most of the social projects related to nutrition, health, education and poverty in general.

• "Works for Taxes", created by the Peruvian State to speed up the implementation of priority public infrastructure projects throughout the country, allowing private companies to finance them recovering their investment through Income Tax.

©2014 Zuzunaga, Assereto & Zegarra Abogados
Torre Parque Mar Av. Larco 1301, Of. 1601 Miraflores - Lima 18, Perú | T +511 219 4170 | F +511 219 4177