Tax implications are low on the list of investment criteria for angel and seed stage investors in Peru (as they should be). However, as the probability of a successful exit increases, tax considerations come to the forefront. Venture capital investors will seek to optimize returns and avoid startups that have inefficient tax structures.
Keep in mind these points:
- Founders and investors can be subject to different tax rates
- Restructuring to a U.S. C Corp triggers a taxable event for shareholders in Peru
- Applicable tax rates for shareholders (founders and investors) can change following a “flip” to a international HoldCo structure
Below is a table that shows tax rates for shareholders based on shareholder profile and domicile of the startup.
This information comes from a report on International Holding Companies for startups in Peru that was made in collaboration with founders, investors, and lawyers in Peru and the U.S.