Peru's Business & Investment guide

Peru's Business & Investment guide 2012 / 2013

Ministerio de Relaciones ExterioresMinistry of Foreign Affairs

Av. Víctor Andrés Belaúnde 171, San Isidro - Lima 27, Peru I Tel: +51 1 411 4444 I Fax: +51 1 411 4445

ContactsErnst & Young Peru

Jorge Medina MéndezCountry Managing PartnerTel: +51 1 411 [email protected]

Advisory

Paulo PantigosoAdvisory LeaderTel: +51 1 411 [email protected]

Alejandro MagditsTel: +51 1 411 [email protected]

Jorge AcostaTel: +51 1 411 [email protected]

Numa ArellanoTel: +51 1 411 [email protected]

Ciro BedoyaTel: +51 1 411 [email protected]

Rafael HuamánTel: +51 1 411 [email protected]

Raúl VásquezTel: +51 1 411 [email protected]

Assurance

Juan ParedesAssurance LeaderTel: +51 1 411 [email protected]

Marco Antonio ZaldívarTel: +51 1 411 [email protected]

Víctor BurgaTel: +51 1 411 [email protected]

Víctor CamarenaTel: +51 1 411 [email protected]

Manuel DíazTel: +51 1 411 [email protected]

Cristian EmmerichTel: +51 1 411 [email protected]

Moisés MarquinaTel: +51 1 411 4444 Anx. [email protected]

Fernando NúñezTel: +51 1 411 [email protected]

Wilfredo RubiñosTel: +51 1 411 [email protected]

Carlos RuizTel: +51 1 411 [email protected]

Mireille SilvaTel: +51 1 411 [email protected]

Víctor TanakaTel: +51 1 411 [email protected]

Carlos ValdiviaTel: +51 1 411 [email protected]

Transactions & Corporate Finance

Enrique OliverosTel: +51 1 411 [email protected]

Tax

David de la TorreTax LeaderTel: +51 1 411 [email protected]

Andrés ValleSouth America Tax Managing PartnerTel: +51 1 411 [email protected]

José Ignacio CastroTel: +51 1 411 [email protected]

Roberto CoresTel: +51 1 411 [email protected]

Humberto AsteteTel: +51 1 411 [email protected]

Marcial GarcíaTel: +51 1 411 [email protected]

Guillermo HidalgoTel: +51 1 411 [email protected]

Elizabeth RosadoTel: +51 1 411 [email protected]

María Julia SáenzTel: +51 1 411 [email protected]

Fernando ToriTel: +51 1 411 [email protected]

Peru's Business & Investment guide

2012 / 2013

Fore

wor

dPeru is one of the most important countries in Latin America. Some of its diverse characteristics include a variety of climates, a large territorial extension, important natural resources, people of great skills and high academic standards and a solid economic and industrial background. Today, Peru is considered to be one of the world’s leading emerging markets, with an important, recent history of economic stability, and people who stand out for their productivity and entrepreneurship. These reasons make Peru an excellent destination for foreign investment.

This guide for business and investment is a tool for foreign investors, providing key information on the country’s current economic situation and on the principal tax, legal and labor aspects and on incorporating businesses in Peru, as well as general information on how to invest and do business in the country. It also contains a complete index of Peru's embassies and consulates abroad, as well as many contacts of interest for the investor.

I. Background information

1. Government

2. Geography

3. People

4. Currency

5. Economy

6. Investment grade

7. Investment promotion conditions

8. International investment agreements

II. Incorporating a business in Peru

1. Corporations

2. Close corporations

3. Public corporations

4. Limited-liability companies

5. Branches

III. Taxes

1. Direct taxes

2. Excise taxes

3. Municipal taxes

4. Customs duties

5. Tax stability agreements

6. Mining laws

1

3

4

5

5

6

19

22

29

Cont

ents

39

41

41

42

42

43

4547

51

52

52

54

54

IV. Labor legislation

1. Employment system

2. Current labor benefi ts

3. Taxes and contributions that are charged on remunerations

4. Termination of employment contract

5. Immigration

V. Accounting standards

Exhibits

Principal regulatory entities in Peru

Investment promotion institutions

1. Ministry of Foreign Affairs: Executive Offi ce for Economic Promotion

2. ProInversión

3. PromPerú

4. ComexPerú

5. CONFIEP

6. Procapitales

7. inPERU

Ernst & Young services for business and investment in Peru

Directory of Peruvian embassies and consulates

Directory of principal chambers of commerce

Acknowledgements

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61

62

63

64

65

67

71

73

75

77

78

79

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Dear friends,

Over the past several years, thanks to its strong economic dynamism, Peru has awoken the world’s attention to its effi cient management of the economy, including during times of crisis, earning the recognition of international private and governmental organizations and agencies and, principally, an increasing number of foreign investors.

The people of Peru, through great effort and sacrifi ce, have attained this important achievement. As a result, and in its search for justice and equity for the large majority of Peruvians, my government considers it indispensable to maintain the current context favorable to investment, based on compliance with the law, as the best guarantee to secure growth and foster social inclusion. We have said it from the beginning, we are the government of a country that is serious and fulfi lls its commitments.

The Peru of growth and social inclusion to which we aspire, modern and developed, will be built principally on the foundation of national effort, but it requires an appropriate international insertion in terms of investment, market access, integration and cooperation, from the perspective of strengthening the country’s competitiveness and creating greater employment opportunities. We are certain that the close relationship between the public and private sectors will contribute to the attainment of these goals.

Welcome to Peru.

Ollanta Humala TassoPresidente de la República

Jorge Medina MéndezCountry Managing PartnerErnst & Young Peru

Investment opportunity in PeruGlobalization is one of the distinguishing issues of our times, and brings with it opportunities and challenges. The boom of emerging markets, including Peru, creates opportunities for growth and innovation among global businesses, which need to have an in-depth understanding of the markets, particularly their fi scal and regulatory environment.

Large corporations seek to benefi t as much as possible from globalization, and to do so they need to become agile and better respond to changes, developing profi table businesses and investing in a variety of countries that, in turn, compete among each other to be more appealing. Within this environment, Peru requires agility and innovation, and to be fully interconnected, in order to effectively show the advantages it offers in a globalized world.

This business guide is Ernst & Young’s contribution to Peru. As a Socially Responsible Company, through the Ernst & Young Foundation, we wish to contribute to the promotion, development and attraction of investments to Peru, by making known the country’s favorable environment and economic situation. The multidisciplinary teams atErnst & Young provide objective and comprehensive advice that helps increase effi ciency, control costs, assess opportunities, and improve the results of transactions, thus contributing to the success of business and entrepreneurship in Peru.

We wish to express our sincere gratitude to the Peruvian Ministry of Foreign Affairs (MRE) especially its Executive Offi ce of Economic Promotion, for their valued collaboration in compiling the information to make this business guide possible. We also would like to thank the Agency for the Promotion of Private Investment (ProInversión) for its important contribution of specifi c and technical information in the endeavor to boost competitiveness in Peru.

We invite you to read our Business & Investment guide for Peru, a friendly and hospitable country, full of great opportunities.

Background information I.

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3Peru's Business & Investment guide


1. Government

Peru is a constitutional democratic republic with a multi-party system. Under the current constitution of 1993, the President, who is the Head of the State and Government, is elected for a fi ve-year period and cannot run for an immediate re-election. The President designates the Prime Minister and the rest of the Cabinet of Ministers. There is a 130-member unicameral Congress elected for a fi ve-year term. Bills may be proposed either by the Executive or by the Legislative branch, and they become law after being passed through Congress and enacted by the President. The Judiciary is an independent institution.

The Peruvian government is directly elected and voting is compulsory for all citizens aged 18 to 70. In the recent democratic election of 2011, president Ollanta Humala was elected President of the Republic. Peru has some of the best macroeconomic indicators of the region with an expected Gross Domestic Product (GDP) growth rate that is well above the Latin American average.

Country overview

Government type • Constitutional republic

Legal system • Based on civil law

Executive branch

• Head of the State and Government: President Ollanta Humala (since July 2011)

• Elections: Every fi ve years by popular vote (consecutive re-election is not permitted). Next elections: April 2016

• The Cabinet is appointed by the President

Legislative branch

• Unicameral congress• 130 seats• Members elected by popular vote, for a fi ve-year term• Next presidential and legislative elections: April 2016

Judiciary• Judges are appointed by the National Judge Selection and

Evaluation Council

International relationships

• Peru has numerous economic cooperation agreements and free trade treaties with several countries

• The Peruvian Diplomatic Academy is recognized as one of the best in Latin America

• Member of the United Nations since 1945 and member of the Security Council in 2006 and 2007

• In 1998, Peru joined the Asia-Pacifi c Economic Cooperation (APEC) and was the host to the APEC and EU-LAC summits in 2008

• �Member of the World Trade Organization since 1995

Source: Peruvian Constitution / CIA - The World Factbook / UN / Ministry of Foreign Affairs (MRE)

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2. Geography

Peru is located on the west central coast of South America. It is bordered by the Pacifi c Ocean to the west, by Chile to the south, by Bolivia and Brazil to the east, and by Colombia and Ecuador to the north. With a total land area of 1,285,215.60 km2, Peru is the third largest country in South America after Brazil and Argentina, and can be divided geographically in three natural regions:

• The Coast is a narrow desert strip with a maritime coastline 3,080-km long. Although it accounts for only 10.7% of Peru's territory, it is home to approximately 16.5 million inhabitants. Lima, the political and fi nancial capital of the country, is located in this region.

• �The Highlands, or Sierra, along the Andean Mountain range, covers 31.8% of the territory and holds approximately 9.6 million inhabitants. This region contains the country's major mineral deposits.

• �The Amazon Rainforest, or Selva, is the largest region and occupies 57.5% of the country’s territory, rich in petroleum and forestry resources. There are approximately 4 million inhabitants in this area.

* Exchange rate at February 29, 2012

Source: BCRP / INEI

Peru

30.1 millionUrban: 77.6%Rural: 22.4%

Population

1,285,215.60 km2

Area

Spanish / Quechua / AymaraPrincipal languages

Nuevo Sol (S/.)S/.1 = US$ 0.37US$1 = S/. 2.67

Currency*

Freedom of religionMostly Roman Catholic

Religion

Varies from tropical in the Amazonregion to dry on the Coast;temperate to very cold in the Highlands

Climate

Natural resourcesGold, copper, silver, zinc, lead, hydrocarbons,

sh, phosphates, timber and agricultural products



3. People

The estimated population of Peru for 2012 is approximately 30.1 million, of which around 9.3 million (about 30.9%) live in Lima. The labor force is estimated to be around 21.3 million people.

The main religion is Roman Catholicism and the main offi cial languages are Spanish and Quechua. Aymara is also spoken in some parts of the southern Highlands region, and several indigenous languages are spoken in the Amazon Rainforest region. The literacy rate is 93% among Peruvians aged 15 and over.

Population overview

Population 30.1 million (estimated for 2012)

72% lives in urban areas (2011)

Age structure 0 - 14 years: 29.1%

15 - 64 years: 65.2%

65 years and over: 5.7%

Growth rate 1.12% (estimated for 2012)

Birth rate 19.41 births per 1,000 population

Death rate 5.93 deaths per 1,000 population

Sex ratio At birth 1.046 male per female

Life expectancy at birth 74.1 years (forecast for 2010 - 2015)

4. Currency

The Peruvian offi cial currency is the Nuevo Sol (S/.). The country has a free fl oating exchange rate system in which the government intervenes to avoid excessive fl uctuations. At February 29, 2012, banks bought US Dollars at S/.2.619 and sold them at S/.2.728. Parallel market exchange rates are similar.

According to estimates at the end of 2011, the Nuevo Sol is one of the world’s least volatile currencies, and has proven to be strong given the fl uctuations of the world’s markets and foreign exchange. Peru’s Central Reserve Bank (BCRP) establishes monetary measures for stimulus and control of liquidity.

There are no restrictions or limitations to either the number of bank accounts held in foreign currency or to the remittance of funds abroad by individuals or legal entities.

Source: INEI

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5. Economy

Gross Domestic Product (GDP) US$196 billion (2012 forecast)

GDP Per Capita US$6,506 (2012 forecast)

GDP Per Capita(Purchasing power parity)

US$10,507 (2012 forecast)

Net international reserves US$54.77 billion (as of March 14, 2012)

External debt US$20.2 billion (2011)

Public debt US$38.3 billion (2011)

Investment 26.5% of the GDP (2012 forecast)

Unemployment rate 6.7% (2011)

Population below poverty line 27.8% (2012 forecast)

Minimum wage S/.675 (at Feb. 29, 2012, approximately US$250)

Main destinations of Peruvianexports

Brazil, Canada, Chile, China, Germany, Italy, Japan,South Korea, Spain, Switzerland, United States and Venezuela

Main exports

Gold, copper, silver, zinc, lead, crude petroleum andby-products, coffee, potatoes, asparagus, paprika,organic banana, cacao, textiles, fish mealand urea

Main countries of origin ofPeruvian imports

Argentina, Brazil, Chile, China, Colombia, Ecuador,Mexico, South Korea and United States

Main importsPetroleum and by-products, plastics, machinery,vehicles, iron and steel, wheat and paper

With 30.1 million habitants (2012 estimate), Peru is a country with rich deposits of copper, silver, gold, lead, zinc, natural gas, petroleum and urea. Due to the climate, natural and cultural variations among its regions, Peru is internationally recognized as a mega diverse country.

Peru's economy refl ects its varied geography. Its abundant resources are mainly found in the Andean highlands, through its mineral deposits, and in its vast coastal waters that have traditionally provided excellent fi shing. Despite the recent global crisis, the administration has resisted tax spending pressures and used the accumulated savings from rising commodity prices between 2006 and 2008 and in 2011 to invest in infrastructure, pay down a portion of the public debt and increase the domestic assets.

Source: BCRP / Apoyo Consultoría / MEF



Peru has achieved signifi cant advances in macroeconomic performance in recent years with very dynamic GDP growth rates, stable currency exchange rates and low infl ation. The country's impressive annual 6.9% growth rate in 2011 positions it among the fastest-growing economies in the region, achieving an accumulated annual growth rate of 6% for the past 13 years. This trend has been driven by rising world commodity prices, investor-friendly market policies and aggressive trade liberalization strategies. In the past decade, Peru’s GDP tripled as a result of the country’s economic growth, moving increasingly towards a middle and upper-middle income economy. Its rapid growth has helped reduce the national poverty rate by almost 15% in recent years, to around 27.8% of its total population for 2012.

According to the International Monetary Fund (IMF) Peru is considered a “rising star” among the new wave of leading emerging markets, and currently enjoys solid fundamentals, sensible framework policies and prudent macroeconomic policies, all of which contribute to its sustained growth and reduced vulnerability.

The country's recent economic boost is due largely in part to the monetary and tax policies applied over the past two decades, having reduced the levels of public debt (from 37.8% of GDP in 2006 to 20% in 2011) and having obtained consistent budget surpluses (estimated at 1.0% and 1.4% of GDP in 2012 and 2013, respectively). All this has occurred hand-in-hand with the liberalization of the goods and labor markets; the opening up of trade through multiple, recent treaties; and foreign direct investment (FDI) as well as the maximization of the country’s revenues resulting from its rich natural resources. Peru also benefi ts from strengths such as the increasing size of its domestic and consumer market and the development of its fi nancial sector. Additionally, at December 31, 2011, international net reserves rose to approximately 27.9% of the GDP at that date.

The forecast for 2012 is that the Peruvian economy will be the third largest in growth in Latin America, and the fi rst in South America. This is principally due to the boost in private consumption, the result of an improvement in employment indicators and increased credit. At the same time, after obtaining a 7.8% growth rate in 2011's last quarter, private investment is expected to increase in 2012 by more than 6%.

Peru has signed Free Trade Agreements (FTAs) with the United States, China, Thailand, Canada, the European Union, South Korea, Chile, Japan, Mexico, Singapore and with the European Free Trade Association (EFTA),comprised of Switzerland, Iceland, Liechtenstein and Norway. It has also concluded negotiations with the European Union. Lastly, Peru has begun trade talks related to the Trans-Pacifi c Partnership Agreement, which includes Chile, the United States, Singapore, Australia and New Zealand. The FTA with the United States entered into force on February 1, 2009 and opened the way to greater trade and investment between both countries. Likewise, the FTA with China entered into force in 2010 and, at December 31, 2011 and for the fi rst time, China became Peru’s principal trade partner. Meanwhile, the FTA with Japan came into effect on March 1, 2012. Peru's main exports are gold, copper, silver, zinc, lead, hydrocarbons, agricultural products, textiles and fi sh meal; and its major trade partners are the United States, China, Brazil, Chile, Ecuador, Argentina, South Korea, Japan, Canada, Germany, Spain, Mexico and Italy.

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Depreciation / Exchange revaluation and Infl ation

The annual rate of infl ation in 2011 was 4.6% (2.1% in 2010). The annual depreciation rate of the Nuevo Sol against the US Dollar during 2011 was 3.9 % (2.8% in 2010).

20001999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

1.52.5 2.1

2.0

4.6

-0.1

3.1

3.7 3.7

-1.9 -1.9

4.5 1.1 3.9

-6.5

-2.8

0.3 3.5

-1.10.3 0.3

-0.1

11.1

-3.4 -3.9-0.7

-4.4

6.7

-15

-10

-5

0

5

10

15

*Estimate

Source: BCRP / Apoyo

Infl ation in 2012 is expected to be within the range proposed by Peru’s Central Reserve Bank (BCRP) between 2.0% and 3.0%. Meanwhile, at February 29, 2012, the interbank interest rate in local currency, fi xed by the Central Reserve Bank (BCRP), was 4.25%.

Main economic activities by region

Peru's main economic activities are agriculture, fi shing, mining, petroleum and gas, and manufactured goods, particularly textile products.

Peru's sharply contrasting geography has made it a diverse country with a large variety of ecosystems and, consequently, fl ora and fauna.

Peru is the world’s top producer of fi shmeal (US$1.768 billion in export trade value in 2011), fresh asparagus (US$292 million in export trade value in 2011), paprika and organic banana; the second world producer of artichoke (US$123 million in export trade value in 2011) and organic cacao (US$63 million in export trade value in 2011), the sixth world producer of coffee (US$1.581 billion in export trade value in 2011), and seventh in avocadoes (US$165 million in export trade value in 2011). Within the mining industry, according to the Mineral Commodity Summaries published by the U.S. Department of the Interior, Peru was the world’s second producer of silver, the second of zinc, the second of copper, the fourth of lead and the sixth of gold in 2011. Additionally, it possesses large deposits of iron ore, phosphates, tin, manganese, oil and gas. The main destinations for Peru’s copper production are China and Japan; Switzerland and Canada for gold; and China and South Korea for zinc and silver.



One of the most recent and potentially viable industries is the development of forest resources (mainly cedar, oak and mahogany). Also, in 2011 mango exports increased by 29% over the previous year, bringing in a total of US$153 million in export trade value, making it one of the fastest growing agro-exports. In the case of the avocado, it ranked second among Peruvian agro-exports in 2011, having increased its annual production by 93% that year. The export of artichokes has increased by almost 60% in the past two years, becoming the fi fth most exported non-traditional product, with the United States and Europe receiving 95.6% of the shipments.

The following map shows the main industries in the different regions of Peru.

Source: University of Texas - Perry Castaneda Library Map Collection

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Gross Domestic Product (GDP) / Trade balance

The Gross Domestic Product (GDP) in 2011 was US$176.7 billion. Total FOB exports reached US$46.268 million, while total imports came to US$36.966 million. The leading exports were from the mining, hydrocarbons and fi shing industries.

0

50

100

150

200

53.3

2000

53.9

2001

56.8

2002

61.7

2003

69.7

2004

79.4

2005

92.3

2006

108

2007

128

2008

127

2009

154

2010

177

2011

196

2012*

Peru's real Gross Domestic Product (GDP) (in US$ Billions)

*Estimate

Source: BCRP / Apoyo Consultoría / MEF

Annual Gross Domestic Product (GDP) variations

*Estimate

Source: BCRP / MEF

3.0

0.2

5.0

4.0

5.0

6.87.7

8.99.8

0.9

8.8

6.9

0.00

2.00

4.00

6.00

8.00

10.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013*

5.7 5.5



2008 2009 2010 2011 2012* 2013*

Agriculture and livestock 7.2 2.3 4.3 3.1 4.8 4.4

Agriculture 7.4 0.9 1.4 3.5 N/A N/A

Livestock 6.0 4.4 4.2 4.2 N/A N/A

Fishing 6.3 -7.9 -16.6 25.2 1.0 2.0

Mining and hydrocarbons 7.6 0.6 2.8 2.1 5.8 8.4

Mining 7.3 -1.4 -4.0 -1.1 4.0 8.1

Hydrocarbons 10.3 16.1 29.5 19.7 13.8 9.5

Manufacturing 9.1 -7.2 13.6 7.7 5.8 6.0

Raw materials processing 7.6 0.0 -2.3 13.3 4.5 5.5

Non-primary manufacturing 8.9 -8.5 16.9 6.6 6.2 6.0

Electricity and water 7.7 1.2 7.7 6.7 5.8 5.7

Construction 16.5 6.1 17.4 4.8 9.8 8.0

Commerce 13.0 -0.4 9.7 7.5 5.9 5.8

Other services 9.1 3.1 7.5 7.3 5.8 5.8

GDP 9.8 0.9 8.8 6.9 5.7 5.5

Gross Domestic Product (GDP) by industryAnnual variation

*Estimate

Source: BCRP / INEI / MEF Projections

Peru's Gross Domestic Product (GDP) by economic sector (2011)

Source: BCRP

Agriculture4.7%

Commerce15.3%

Construction6.5%

Electricity and water 2.0%

Hydrocarbons0.8%

Taxes9.7%

Manufacturing of raw materials2.6%

Non primary manufacturing12.3%

Other services

39.1%

Mining4.1%

Fishing 0.4%

Livestock2.5%

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Trade balance (in US$ Billions)

Source: BCRP / Mincetur / ComexPerú

28.0

0

5,000

10,000

2007

Exports

2008 2009 2010 2011

8.4

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

19.6

26.8

8.4

21.0

35.6

6.7

28.9

46.3

9.3

37.0

30.9

2.4

28.5

Imports Surplus

Exports by economic sector (2011)

*Manufactured

Source: ComexPerú

11.0%Oil and by-products

Agricultureand Livestock *

6.2%

Fishing4.6%

Fishing*2.3%

Textiles*4.3%

Chemicals*3.6%

Metallurgy and iron steel industry*2.3%

Metal working*1.0%Farming

3.6%

Non metallic minerals*1.1%

Other1.4%

Mining58.6%

The export forecast for 2012 is expected to be more than US$50 billion.



Imports by economic sector (2011)

Source: ComexPerú

15.8%Oil and by-products

Agricultureand Livestock

9.4%

Miscellaneous(incl. jewelry)

3.5%Textiles

3.9%

Chemicals17.1%

Metallurgy andiron steel industry

7.0%

Metal working 37.4%

Farming 1.0%

Non metallic minerals 1.3%

Other0.9%

Wood and paper2.7%

Exports by trading partner in US$ Millions, Top ten (2011)

Source: ComexPerú

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Italy

Spain

South Korea

Germany

Chile

Japan

Canada

United States

Switzerland

China

1,309

1,666

1,695

1,900

1,979

2,175

4,176

5,805

5,887

6,960

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Imports by trading partner in US$ Millions, Top ten (2011)

Source: ComexPerú

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Japan

Chile

Mexico

Colombia

South Korea

Argentina

Ecuador

Brazil

China

United States

1,213

1,281

1,320

1,411

1,394

1,708

1,838

2,309

5,985

7,000

Traditional and Non-traditional exports in US$ Millions

Source: BCRP / ComexPerú

6.3

7.6

6.2

7.6

10.2

21.723.3

20.6

28.0

36.1

0

10,000

20,000

30,000

40,000

2007 2008 2009 20112010

Traditional Non-traditional

In 2011, the export of non-traditional products increased by 34.2% over 2010. The markets which experienced the most growth were non-metallic minerals (30%), metal-mechanic (39.3%), and textiles (28.6%). The principal products exported were



Annual export variation of non-traditional products(November 2010-2011)

Source: BCRP

18.1%

Wood, paper & by- products

Agriculture and Livestock16.9%

Fishing 6.0%

Textiles28.6%

Chemicals12.4%

Metallurgy and Iron SteelIndustry

-1.8%

Metal working39.3%

Non metallic minerals 30.0%

Non-traditional exports by trading partner in US$ Millions (2011)

Source: ComexPerú

0 1,000 1,500 2,000 2,500 3,000

United States

Venezuela

Colombia

Ecuador

Chile

Spain

Bolivia

The Netherlands

Brazil

China

2,400

900

820

620

610

490

440

430

350

330

fresh grapes, refi ned copper wire, fresh or chilled asparagus, and natural calcium phosphates. The most important traditional products were gold, copper, lead, zinc, gas, coffee and fi shmeal.

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Mining exports in US$ Millions

Source: Ministry of Energy and Mines (MEM)

0

5,000

10,000

15,000

30,000

25,000

20,000

9,790

14,735

17,238

2005

18,657

2006 2007

16,361

2008 2009

21,723

2010 2011

27,361

Mining exports by product (2011)

Source: ProInversión

Gold37.48%

Copper40.12%

Zinc5.69%

Lead6.81%

Tin0.68%

Others5.40%

Iron3.82%



Source: Ministry of Energy and Mines (MEM) / SNMPE / Ernst & Young. Some categories may vary.

According to estimates, the investment projects portfolio for mining between 2011 and 2021 is approximately US$52,198 millions. The following are some of the most important projects:

Expansions Southern PeruEstimated investment:US$600 million

Minera Barrick MisquichilcaEstimated investment: US$400 million

Compañía Minera Antamina Estimated investment: US$1.1 billion

Shougang Hierro PeruEstimated investment: US$1 billion

Sociedad MInera El BrocalEstimated investment:US$197 million

Sociedad Minera Cerro VerdeEstimated investment:US$1 billion

Cajamarquilla Zinc Refi nery Estimated investment:US$500 million

Bayovar Estimated investment:US$300 million

Environmental Impact Study (EIS), approved

Anglo American QuellavecoEstimated investment:US$3 billion

Norsemont Peru ConstanciaEstimated investment:US$846 million

Minera Chinalco ToromochoEstimated investment:US$2.2 billion

Rio Alto Mining La ArenaEstimated investment:US$360 million

Xstrata Peru AntapaccayEstimated investment:US$1.5 billion

Chariot Resources Mar CobreEstimated investment:US$744 million

Environmental Impact Study (EIS), presented and under evaluation / inspection

Xstrata Peru Las BambasEstimated investment:US$4.2 billion

Southern Peru Tia MariaEstimated investment:US$950 million

Bear Creek Santa AnaEstimated investment:US$51 million

Minera YanacochaMinas CongaEstimated investment:US$4.8 billion

Exploration Nanjinzhao GroupPampa de PongoEstimated investment:US$3.28 billion

Metminco Ltd Los CalatosEstimated investment:US$2.2 billion

Lumina Copper GalenoEstimated investment:US$2.5 billion

Southern Peru Los Chancas Estimated investment:US$1.2 billion

Apurimac FerrumHierro ApurimacEstimated investment:US$2.3 billion

Rio Tinto La GranjaEstimated investment:US$1 billion

Ernst & Young18

During 2011, there was a signifi cant increase of more than 50% in annual mining investment in Peru, and an important investment growth in outfi tting production plants, mining equipment, exploration, development, infrastructure and preparation of expansion of operations.

Investment in the mining industry (in US$ Billions)

Source: Ministry of Energy and Mines (MEM)

Evolution of the tax surplus / defi cit (as GDP %)

Source: Ministry of Economy and Finance (MEF) (Multiannual Macro-economic Framework 2012)

0

1,000

2,000

3,000

7,000

5,000

6,000

4,000

1.611.25

1.71

2006

2.82

2007 2008

4.07

2009 2010 2011

7.20

1.8

2.2

3.1

2.3

-1.6

1.0

1.8

-0.5

1.4

-2.0

-1.0

1.0

0

2.0

3.0

4.0

2006 2007 2008 2009 20112010 2012 2013 2014



Tax income increase (in US$ Millions)

Tax burden (in GDP%)

*Estimate

Source: Apoyo

Source: Ministry of Economy and Finance (MEF) (Multiannual Macro-economic Framework 2012)

6. Investment grade

The leading risk rating agencies have positive forecasts for Peru, and have not only ratifi ed the country’s investment grade but also its sovereign credit rating. The solid economic prospects refl ected in the minimum growth forecast of 5.7% of GDP for 2012 and 5.5% for 2013 have contributed to this rating. These economic prospects are supported by the rapid growth in investment and the signifi cant drop in tax and external vulnerabilities, all of this within a context of multiple sources of growth with low infl ation and strong macroeconomic fundamentals.

6,8407,877 9,123

10,79513,891

16,76419,905 17,451

22,94025,716

31,021

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

0

10

12

14

16

18

20

13.6

15.2 15.6 15.7

13.8

14.8 15.3 15.3 15.6 15.8

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ernst & Young20

Source: Standard & Poor's / Fitch Ratings / Moody's

Source: Bloomberg

Obtaining the investment grade has earned Peru a great deal of international attention. More importantly, it has had a positive impact on the local economy and is boosting the stock market and the appreciation of the Nuevo Sol in the short term. Today, an increasing number of multinational corporations are looking at Peru with greater interest. The subsequent improvement in employment and reduction in poverty will predictably help improve social welfare.

Peru's investment rating

Country S&P Fitch Moody's

Chile A+ A+ Aa3

Mexico BBB BBB Baa1

Peru BBB BBB Baa3

Brazil BBB BBB Baa2

Colombia BBB- BBB- Baa3

Venezuela B+ B+ B2

Argentina B B B3

Bolivia B+ B+ B1

Ecuador B- B- Caa2

Investment Grade

S&P / Fitch Moody's Description

AAA Aaa Risk-free

AA+, AA, AA- Aa1, Aa2, Aa3 High grade

A+, A, A- A1, A2, A3 High repayment capacity

BBB+, BBB, BBB- Baa1, Baa2, Baa3 Moderate repayment capacity

BB+, BB, BB- Ba1, Ba2, Ba3 Some repayment capacity

B+, B, B- B1, B2, B3 High uncertainty of repayment capacity

CCC+, CCC, CCC- Caa1, Caa2, Caa3 Extremely vulnerable to default

D Ca In default

Peru recently gained the position of the third most globalized country in Latin America, according to the Globalization Index determined by Ernst & Young. Five elements were considered within this index: opening to foreign trade, capital fl ow, exchange of technology and ideas, international movement of workers, and cultural integration. At the same time, in early February 2012, Bloomberg Markets ranked Peru as the third emerging market with the greatest global projection in 2012, based on the country’s advantages such as low share prices and their possible future increase.



Source: BBVA Research / BCRP

Estimated infl ation rates in Latin America

As can be seen in the following tables, a recent international survey estimated Peru to have one of the lowest infl ation rates in Latin America, with a rate of 4.6% in 2011 and an estimated range from 2.0% to 3.0% in 2012. And at the same time, it has one of the highest GDP growth rates in 2011 and 2012 (forecast).

Source: BBVA Research / BCRP / MEF

Estimated Latin American GDP growth rates

0 5 10 15 20 25 30 35

Latin America

Brazil

Venezuela

Paraguay

Panama

Mexico

Colombia

Chile

Uruguay

Peru

5.87.1

5.06.5

27.529.9

7.510.7

4.45.3

3.84.1

3.53.5

3.24.2

7.07.5

3.04.6

2011

2012

10 32 54 76 8

Latin America

Venezuela

Uruguay

Paraguay

Panama

Mexico

Colombia

Chile

Brazil

Argentina

Peru

4.24.8

4.65.3

5.25.9

7.65.8

3.84.7

5.45.0

4.76.5

3.53.0

5.77.5

5.76.9

2012

20112.02.8

Ernst & Young22

7. Investment promotion conditions

a. Foreign investment legislation and trends in Peru

Peru actively seeks to attract both foreign and domestic investment in all sectors of the economy. It has therefore taken the necessary steps to establish a consistent investment policy that eliminates obstacles to foreign investment. As a result, Peru is now considered to have one of the most open investment systems in the world.

Peru has adopted a legal framework for investments that offers automatic investment authorization. Moreover, it has established the necessary economic stability regulations to protect private investors from arbitrary changes in the legal terms and conditions of their ventures and to reduce government interference in economic activities.

The Peruvian state guarantees foreign investors legal stability on income tax and dividend distribution regulations. The foreign investors entitled to obtain this tax and legal stability are those willing to invest in Peru at least for a two-year term; to invest a minimum amount of US$10 million in the mining and/or hydrocarbon sectors; or of US$5 million in any other economic activity; or to acquire more than 50% of the shares of a privatized or in privatization process, state-owned company.

Peruvian laws, regulations and practices do not discriminate between national and foreign companies. Foreign investors are treated the same as those from Peru. There are no restrictions to the repatriation of earnings, international transfers of capital or currency exchange practices. There are also no restrictions on the remittance of interest earnings and royalties. Foreign currency may be used to purchase goods abroad or to cover fi nancial obligations so long as the operator is in compliance with the relevant Peruvian tax legislation.

b. Favorable legal framework for foreign investors

Peru offers a legal framework1 that protects foreign investors' interests by offering them:

�• An equal and non-discriminatory treatment

�• Unrestricted access to most economic sectors

�• Free capital transfer

�• Free competition

�• Guarantee to private property (no expropriations or nationalizations)

�• Freedom to purchase domestic stocks

�• Freedom to access internal and external credit

�• Freedom to transfer royalties

1 Constitutional Regulations “Foreign Investment Law”, Executive Order # 662, “Private Investment Growth Frame Law”, Executive Order # 757, “Public Construction of Infrastructure and Public Services Private Investment Promotion Law”, Consolidated Text (TUO) approved under Supreme Executive Order # 059-96-PCM.Extracted from ProInversión.



�• �A country with a network of investment agreements and membership in the Investment Committee of the Organization for Economic Cooperation Development (OECD)

�• The country’s membership in the ICSID - International Centre for Settlement of Investment Disputes, and MIGA – Multilateral Investment Guaranty Agency (international arbitration institutions)

Direct foreign investment must be registered with the Agency for Promotion of Private Investment (ProInversión).

Foreign investors may remit the net profi ts resulting from their registered investments without any restrictions. Likewise, foreign investors may also transfer their shares, property or participation rights, reduce their capital and dissolve their companies.

Recognition of the favorable investment climate

Peru has climbed six positions in the global competitiveness report, published by the World Economic Forum in 2011. It currently ranks as “competitive for effi ciency” but, according to the ranking, it is close to achieving the highest “competitive for innovation” status if its current situation is sustainable.

According to this ranking, Peru is among the top countries in Latin America in the areas indicated below, as well as being already recognized for its clear leadership in protecting the investor, fi nancially sound banking, infl ation control and national reserves.

RankingAverage trade tariff

Facility to access loans

Trade barriers: no limitation to imported goods to compete in the domestic market

Legal protection to lenders and borrowers

1 Peru Panama Chile Guatemala

2 Costa Rica Peru Peru Peru

3 Nicaragua Chile Uruguay Puerto Rico

4 El Salvador Colombia Panama Panama

5 Guatemala Paraguay Puerto Rico Colombia

6 Chile Brazil Mexico Costa Rica

7 Panama Guatemala Paraguay El Salvador

8 Paraguay Bolivia Guatemala Mexico

9 Ecuador Puerto Rico El Salvador Uruguay

10 Uruguay El Salvador Honduras Chile

Source: World Economic Forum 2011

Ernst & Young24

Doing Business

Ranking for Latin America

Position Country

39 Chile

41 Peru

42 Colombia

53 Mexico

61 Panama

90 Uruguay

102 Paraguay

113 Argentina

126 Brazil

130 Ecuador

Forbes

Best Countries for Doing Business

Position Country

24 Chile

42 Peru

57 Mexico

60 Panama

61 Uruguay

62 Colombia

69 Costa Rica

73 Brazil

76 Dominican Republic

81 El Salvador

c. Ease of Doing Business in Peru

According to Doing Business 2012, Peru ranks 41st among 183 countries with facilities for entrepreneurship and doing business, and ranks second in Latin America, a position that is corroborated by Forbes.

Source: Doing Business 2012 Source: Forbes 2011

The following shows the principal investment climate indicators:

Indicators PeruLatin America and Caribbean

Incorporating a business

• Number of formal proceedings 5.0 9.0

• Time (days) 26 54

• Cost (as % of income per capita) 11.9 37.3

Construction permits handling

• Number of procedures 16.0 14.0

• Time (days) 188 221

Property registration

• Number of formal proceedings 4.0 7.0

• Time (days) 7 66

• Cost (as % of property’s value) 3.3 5.9

(it continues)



Indicators PeruLatin America and Caribbean

Credit

• Legal rights strength index (0-10) 7 6

• Credit information scope index (0-6) 6 3

• Public records offi ce coverage (% of adults) 28.5 10.5

• Private organizations coverage (% of adults) 36.0 34.2

Investment protection

• Transparency index grade (0-10) 8 4

• Board of directors responsibility index (0-10) 5 5

• Facility index for shareholders trials (0-10) 8 6

• Investment protection strength index (0-10) 7 5

Taxes

• Number of taxes per year 9 33.2

• Income tax (%) 26.6 19.9

• Labor taxes and contributions (%) 11 14.6

• Other taxes (%) 3.1 13.2

• Total tax rate (as % over the earnings) 40.7 47.7

Cross-border trade

• Number of documents required for exports 6.0 6.0

• Time to export (days) 12 18

• Export cost (US$ per container) 860 1,257

• Number of documents required for imports 8.0 7.0

• Time to import (days) 17 20

• Import cost (US$ per container) 880 1,542

Business closing

• Time (years) 3.1 3.3

• Cost (as % of the assets) 7 16

• Recovery rate (cents per US$) 28.0 30.7

Source: World Bank - Doing Business 2012

(continuation)

Ernst & Young26

Doing Business 2012: Top 50 Countries according to property registration, access to credit and protection of investor

CountryFacility to do business


Access to credit

Protection of investor

Singapore 1 14 8 2

Hong Kong 2 57 4 3

New Zealand 3 3 4 1

United States 4 16 4 5

Denmark 5 11 24 29

Norway 6 8 48 24

United Kingdom 7 68 1 10

South Korea 8 71 8 79

Iceland 9 11 40 46

Ireland 10 81 8 5

Finland 11 25 40 65

Saudi Arabia 12 1 48 17

Canada 13 41 24 5

Sweden 14 19 48 29

Australia 15 38 8 65

Georgia 16 1 8 17

Thailand 17 28 67 13

Malaysia 18 59 1 4

Germany 19 77 24 97

Japan 20 58 24 17

Latvia 21 32 4 65

Macedonia 22 49 24 17

Mauritius 23 67 78 13

Estonia 24 13 40 65

Taiwan 25 33 67 79

Switzerland 26 14 24 166

Lithuania 27 7 48 65

Belgium 28 174 48 17

France 29 149 48 79

Portugal 30 31 126 46

Netherlands 31 48 48 111

Austria 32 35 24 133

United Arab Emirates 33 6 78 122

Israel 34 147 8 5

(it continues)



CountryFacility to do business


Access to credit

Protection of investor

South Africa 35 76 1 10

Qatar 36 37 98 97

Slovenia 37 79 98 24

Bahrein 38 30 126 79

Chile 39 53 48 29

Cyprus 40 123 78 29

Peru 41 22 24 17

Colombia 42 51 67 5

Puerto Rico (U.S.) 43 126 24 17

Spain 44 56 48 97

Rwanda 45 61 8 29

Tunisia 46 65 98 46

Kazakhstan 47 29 78 10

Slovak Republic 48 10 24 111

Oman 49 21 98 97

Luxembourg 50 134 150 122

d. The support to investment promotion

Microfinance sector

During 2011, the Multilateral Investment Fund (IDB) and MIX established the annual ranking of the 100 Best Microfi nance Institutions in Latin America and the Caribbean, and evaluated the performance of these institutions in three areas: scope, effi ciency and transparency. The fi rst of these categories measures the success obtained in the expansion of fi nancial services; the second measures the degree to which the microfi nance companies reduce costs to their clients; and the third takes a comparable and standard measurement of the public coverage given to their performance results. In this assessment, a Peruvian fi nancial institution earned fi rst place and Peru has occupied two places among the fi rst ten, as well as representing a quarter of that ranking.

Peru: an EITI member

The Extractive Industries Transparency Initiative, EITI, is a recognized alliance that includes state entities, extractive companies, international organizations and sectors of civil society to promote the use of transparency criteria in payments made to each State by mining, oil, and gas companies, and the manner in which the State channels this income to ensure the sustainable development of its population.

Source: Doing Business 2012

(continuation)

Ernst & Young28

Peru was the fi rst country in the Americas to join the initiative, due to the major relevance and impact that these extractive industries have on its domestic revenue. In 2011, Peru created its own Permanent Multisector Commission for Transparency in Extractive Industries, and in February 2012, Peru was rated a compliant country by EITI after meeting audit standards.

For more information, see www.eitiperu.minem.gob.pe

e. Tourism and gastronomy

Tourism

Peru enjoys a privileged position among world tourism destinations, ranking among the top ten preferred destinations worldwide for its authenticity, art and culture, history and natural beauty, as well as for the famous tourism destinations Machu Picchu and Amazonia, listed as World Heritage sites.

The annual increase in the fl ow of tourists has been the following (in thousands):

Source: Mininter

Gastronomy

Peruvian cuisine ranks among the most important worldwide. Over time, it has become a “fl ag product” for its quality and increasing international competitiveness, as well as for its rich tradition and history. Peru is currently experiencing a “gastronomic boom” and 42% of travelers visiting Peru say that its food is one of the aspects that infl uence their choice of Peru as their travel destination. The growth of Peruvian gastronomy can be seen in the business opportunities, whether exporting its products, knowledge and cooking skills, or through Peruvian food franchises in a growing number of countries.

0

500

1,000

1,500

2,500

3,000

2,0001,570

1,7201,920

2005 2006

2,1402,060

2007 2008

2,300

2009 2010 2011

2,570



8. International investment agreements

In order to consolidate a legal framework that will guarantee and protect investment, Peru has been especially active in negotiating bilateral, regional and multilateral instruments in order to establish a guarantee of treatment, protection, and access to international mechanisms of confl ict resolution for investment. It is important to note that international investment agreements can be negotiated individually or through Reciprocal Investment Promotion and Protection Agreements, or as Investment Chapters included in broader Commercial Agreements such as Free Trade Agreements. To date, Peru has signed international investment agreements with 35 countries which are in full force and effect.

Another signifi cant agreement is that signed with the Overseas Private Investment Corporation (OPIC) and the constituent accord with the Multilateral Investment Guaranty Agency (MIGA). Additionally, Peru is a member of the International Convention for the Settlement of Investment Disputes (ICSID) as an alternative for resolving disputes that may arise between investors and the government.

International investment agreements

a. Free trade agreements signed by PeruThe development of good international relations is of vital importance to the sustainable development of a nation. Opening new international markets has allowed Peru to achieve a more dynamic economy, which is reflected in its signing of Free Trade Agreements (FTAs), which have resulted in a marked increase in exports.

To date, Peru has joined various regional trade agreements, multilateral accords and bilateral trade agreements. The following are the accords signed to date2.


Australia ChinaSouth KoreaMalaysiaSingaporeThailandJapan

GermanyBelgium and LuxembourgDenmarkSpainFinlandFranceThe Netherlands

ItalyIceland

NorwayLiechtenstein

PortugalUnited KingdomCzech RepublicRomaniaSwedenSwitzerland

CanadaUnited States

Argentina BoliviaChileColombiaEcuadorParaguayVenezuela

CubaEl Salvador

2 Peruvian Ministry of Foreign Affairs, and ProInversión.

Ernst & Young30

Trade agreements:

• Multilateral agreements: − World Trade Organization (WTO)

• Regional agreements: − Asia Pacific Economic Cooperation Forum (APEC) − Latin American Integration Association (ALADI) − Andean Community of Nations (CAN)- Bolivia, Colombia, Ecuador and Peru

• Bilateral agreements: − European Free Trade Association (EFTA)– Switzerland, Iceland, Liechtenstein

and Norway − Canada − Chile − China − Costa Rica − Cuba − European Union − Guatemala − Japan − Mercosur (South Common Market) - Argentina, Brazil, Paraguay and Uruguay − Mexico − Panama − Singapore − South Korea − Thailand − United States

• Ongoing negotiations: − Honduras − El Salvador − Trans-Pacific Partnership (TPP) – Brunei Darussalam, Chile, New Zealand,

Singapore, Australia, United States and Vietnam



The following map shows the status of the agreements, followed by a brief summary of the principal accords:


Australia

China

Central America

KoreaThailand

Vietnam

BruneiSingapore

Malaysia

Mercosur

Andean Community

European Union

Japan

New Zealand

EFTA

Canada

United States

Chile

Mexico

APEC

OMC

Agreement in force Agreement tobecome effective

Agreement undernegotiation

Free Trade Agreement Peru - China

China has shown the highest economic growth rate worldwide in the last two decades (around 10% per year, on a sustained basis).

The signing of this agreement in April 2009 has given Peru access to a market of 1,300 million habitants, of which 350 million are high purchasing power consumers.

From 2002 to 2011, Peruvian exports to China registered an average annualgrowth of 31%. In 2011, China became Peru’s main trading partner and bilateral trade reached US$12.945 billion. Peru's main exports to China include copper, fishmeal, and iron ore, lead and zinc. In turn, China's main exports to Peru include machinery, cell phones and high-tech products. Among the principal Peruvian export products that are gaining a market with this agreement are giant squid, cuttlefish and squid, fresh grapes, avocado, mango, barley, paprika, tara powder, fine animal hair yarn, etc.

In line with Peru’s strategy to become the operations center for Asia in South America, this FTA gives Peru the opportunity to establish clear rules within a framework of transparency and reliability that not only has the ability to increase bilateral trade but also attract Chinese investment to Peru, principally in mining, agriculture, fishing, and electric, wind, oil and gas power.

Ernst & Young32

Free Trade Agreement Peru – United States

The Andean Trade Promotion and Drug Eradication Act (ATPDEA), formerly known as the Andean Trade Preference Act, was enacted in 2002 and constituted a tariff exception regime unilaterally granted by United States to Bolivia, Colombia, Ecuador and Peru.

The Trade Promotion Agreement (TPA) was signed with the United States in December 2005, ratified by the American Congress in December 2007 and entered into force as of February 1, 2009. It consolidates a temporary preference tariff granted by the ATPDEA. The TPA explains the dynamism of exports in recent years and consolidates the trade policy reforms enacted by Peru during the nineties.

The continued application of this law, complemented by the inclusion of certain items in the tariff exemptions, culminated with the signing of this Free Trade Agreement.

Free Trade Agreement Peru – European Union (EU)

The trade agreement with the EU is part of a commercial business strategy that seeks to turn Peru into an exporting economy, developing a competitive export supply and promoting investment.

The EU is one of the principal destinations for Peruvian exports, with a share of 18.5%. In 2011, Peruvian exports to the EU reached US$8.292 billion, while EU imports in the same period came to US$4.086 billion. This region represents a market of great opportunities, consisting of over 490 million people with among the highest income per capita levels in the world.

Among its benefits in market access terms, it has represented a tariff relief of 99.3% on Peruvian exports to the EU, which covers 95% of agricultural tariff lines. As a result, export products from Peru such as asparagus, avocado, coffee, capsicum fruits (i.e. paprika and hot peppers) and artichokes will enter the European market duty-free when the agreement enters into effect.

The trade agreement does not only contemplate tariff reductions but it also includes topics such as: rules of origin, intellectual property, services and incorporation of companies, government procurement and others. This helps to improve the country risk rating, lower the cost of credit and consolidate the capital market. As a result, the policy of opening up economic activities is consolidated, providing certainty for developing private investment.

Another important benefit is the exemption of customs duties (drawback). For the first time in a trade agreement, the EU has accepted that the goods included in this mechanism continue to be considered as originary, and as such, also enjoy the benefits of this agreement.

Free Trade Agreement Peru – Japan

In recent years, Peru has begun a process of rapprochement with Asia, which includes initiating negotiations with its principal trading partners on the continent.



As a result, on May 31, 2011, Peru and Japan signed an Economic Association Agreement, which entered into force on March 1, 2012.

This Peru-Japan Economic Association Agreement permits a preferential access to a world consolidated market that also has a great capacity for consumer products with high added value content.

The Peruvian products with preferential access to the Japanese market through this Agreement include coffee, asparagus, sachainchi, giant squid, fish oil, copper, lead, zinc, purple maize, giant maize from Cusco, and swordfish.

Complementary Economic Agreement (ACE) Peru – MERCOSUR

This agreement aims to form a free trade area between Peru and the MERCOSUR members (Brazil, Argentina, Paraguay and Uruguay) through the expansion and diversification of commercial exchange, and the elimination of tariff and non-tariff restrictions that affect the reciprocal exchange of goods and services.

Andean Community of Nations (CAN)

Peru is a member of the CAN in agreements related to trading goods tariff exemptions; the liberalization of sub-regional service markets; community regulations concerning intellectual property; land, air and water transport; telecommunications and other trade topics.

Free Trade Agreement Peru – Chile

This commercial agreement was signed in 2006 and entered into force in March 1, 2009. It restates and replaces the previous economic complementation agreement signed between Chile and Peru in 1998 including its exhibits, protocols and other tools.

The agreement includes a timetable for gradual tariff reductions on goods produced by both countries with final exemption in 2016. To date, most of the goods included in the agreement are already 100% tariff-free.

This agreement also includes procedures for dispute settlement between the investor and the State.

Asia Pacific Economic Cooperation Forum (APEC)

Peru has been a member of APEC since 1998. Its admission to this forum originated in its desire to strengthen existing economic links and increase economic relations with a region that has shown the most dynamic economic growth in recent years. The APEC market represents nearly 50% of the world population and is expected to become a natural bridge between the industrialized Asian economies and the emerging Latin American economies.

Ernst & Young34

World Trade Organization (WTO)

The WTO is a negotiating forum in which the rules about world trade governance are discussed. Peru has been a member of the WTO since its establishment in 1995.

b. Mechanisms to promote investment in infrastructure and public services3

Law 29230 or “Works for Taxes”

The objective of Law 29230 is to encourage the execution of public investment projects via agreements between Regional or Local Governments and private companies. The private companies can finance and execute prioritized public investment projects in infrastructure and use them as credit against their tax payments.

At January 2012, within the Law 29230 framework, Regional Governments are permitted to use up to S/.4.085 billion (approximately US$1.5 billion) to execute projects, while Local Governments have a total of S/.12.66 billion4 (approximately US$4.689 billion).

In the case of projects available, 757 projects were prioritized in January 2012 for S/.3.288 billion (approximately US$1.218 billion), which correspond to 12 Regional Governments and 98 Local Governments. The updated list of projects is available on the ProInversión website at www.proinversion.gob.pe. The principal economic and social benefits of this law are shown as follows.

Economic and social benefi ts

For Regional and Local Governments

For private companies For society

Simplifi es procedures and releases technical resources.

Associates company image to works with a high social impact.

Advances socioeconomic development by accelerating investment in infrastructure.

Advances fi nancial resources that are discounted the year after the work is completed.

Accelerates works that could raise local competitiveness and that of the company.

Creates direct and indirect jobs in the local community, in construction during the operation and in later maintenance.

Accelerates the execution of works, sustaining or increasing a buoyant local economy.

Constitutes an additional way in which construction companies may compete for public works.

Fosters the creation of new companies given the improved competitiveness.

3 Source: ProInversión4 Source: Ministry of Economy and Finance. Its website also provides information on the maximum amounts that a Regional or

Local Government can use of specific resources from the mining canon and surplus canon, mining taxes, royalties, customs revenue and share interests. These amounts are calculated annually.




Companies that choose to invest under the Works for Taxes program are reimbursed in the following manner:

- The amount invested by the company in executing public projects is recognized via a Certificate of Regional and Local Public Investment (CIPRL), once the work or its stages5 are completed, without observations.

- The CIPRLs are issued by the National Bureau of the Public Treasury (DNTP) of the Ministry of Economy and Finance (MEF). They are non-negotiable and are valid for ten years as of the date of their issue.

- The CIPRLs are used by the private company exclusively for use against down payments and to regularize Income Tax (for up to 50% of the tax payable the previous year).

- If the CIPRLs are not used during the corresponding fiscal year, they may be used in the following fiscal years, recognizing a 2% annual revaluation on the balance.

- If the CIPRLs are not used within their term of validity, the Peruvian Tax Administration (SUNAT) will return the corresponding amount to the company through negotiable letters of credit.

Private initiative

The Peruvian State has established a private initiative program that provides the private sector with the possibility of presenting a project for state infrastructure by investing in assets, companies, projects, services or public works. The initiatives should be presented to the Private Investment Promotion Entities (in the case of National Government, to ProInversión; in the case of Regional or Local Governments, to the designated institution) to be evaluated and admitted for processing. The private initiative projects may be self-sustained or co-financed.

The following are among the main criteria used by the Promotion Entity for Private Initiative when evaluating a project:

• The financial capacity and technical solvency of the proponent to develop large-scale projects on budget

• Financial and social profitability of the project

• The environmental impact of the project

As of March 22, 2012, the Ministry of Economy and Finance, together with ProInversión, have announced a portfolio of 26 investment projects of more than US$10,000 millions. They are expected to be awarded between May 2012 and December 2013. For more information, please see www.proinversion.gob.pe

5 Partial (quarterly) CIPRLs can be issued, against the progress of the work, in projects whose execution require periods greater than six (6) months.

Ernst & Young36

Public Private Association (APP)

The Public Private Associations (APP) provide a means to participate in private investment through experience, know-how, equipment, technology, and a distribution of risks and resources, preferably private, in order to create, develop, improve, operate and maintain public infrastructure or to provide public services. The APPs are executed through concession, operation, management, joint venture or any other format that meets the definition. An APP can be formed either through state or private initiative, depending on whether the project originates in the public or private sector.

Classification

• Self-sustainable: APPs that are financed by rates paid by the users or by prices, tolls or similar forms to recover investment, and which do not require the use of public funds for co-financing.

Self-sustainable APPs also include corporations that, if they require financial guarantees from the State, the probability of activating these guarantees must be minimum or nil. A minimum guarantee may not be greater than 5% of the total cost of investment, and cannot include operation and maintenance costs.

In addition, self-sustainable APPs can be corporations that, if they require non-financial guarantees, have a low or zero probability of requiring the use of public funds, i.e. that the probability of using public funds is not greater than 10% for each of the first five years of the project’s execution.

• Co-financed: corporations that require co-financing or the granting or contracting of financial or non-financial guarantees, with a significant probability of demanding the use of public funds.

Principles governing the use of an APP

• Value for money: a public service must be supplied by the private company able to offer the highest quality at a determined cost or the same quality at a lower cost. This seeks to maximize user satisfaction and optimize the value of the funds from public resources.

• Transparency: all quantitative and qualitative information that is used for decision-making in the phases of evaluation, development, implementation and balance sheet reports must be made known to the public, based on the principle of publicity established in the Law of Transparency and Access to Public Information.

• Competition: competition is promoted in order to ensure efficiency and lower costs in the provision of infrastructure and public services, as well as to avoid any anticompetitive or collusive acts.

• Adequate risk assignment: assign the risks to whichever company has the greater capacity to administer the project at lower cost, considering the public interest and the project profile.



• Budgetary responsibility: the State’s capacity for payment must be considered when acquiring binding and contingent financial commitments, without compromising the sustainability of public finances nor the regular supply of the service.

Institutions that promote private investment in APPs

a. National government:

The Agency for the Promotion of Private Investment (ProInversión) for projects that meet one of the following characteristics:

• Total investment greater than 15,000 Tax Units or UITs (approximately US$20 million)

• Multi-sector projects

• Geographic scope that encompasses more than one region

• Application submitted and approved by the Board of Directors of ProInversión

The Ministries, through their Investment Committees, when the projects do not fall under the above categories.

b. Regional or Local Governments:

The entity in the Regional or Local Government assigned to this task.

9. Foreign investment and private investment

Direct foreign investment stock by sector (2011)

Energy13.2%

Industry13.9%

Finance16.1%

Communications17.2%

Fishing0.7%

Petroleum2.5%

Commerce3.6%

Services2.5%

Housing2.4%

Tourism0.3%

Forestry0.0%

Mining24.5%

Construction1.3% Transport

1.5%

Agriculture0.2%


Ernst & Young38

Private investment (in US$ Billions)

*Estimated


8.7

2000

8.4

2001

8.4

2002

9.2

2003

10.5

2004

12.3

2005

15.1

2006

19.5

2007

27.3

2008

22.4

2009

29.5

2010

32.7

2011*

Direct foreign investment stock in Peru (in US$ Millions)

*Estimated


12,233

2000

13,019

2001

14,031

2002

14,158

2003

14,043

2004

13,753

2005

15,231

2006

15,587

2007

17,945

2008

19,709

2009

21,461

2010

22,020

2011*

Incorporating a business in Peru

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There are different types of legal entities which investors can resort to in order to establish businesses in Peru. The following are those most commonly used by foreign investors:

1. Corporations

A minimum of two shareholders is required. Non-domiciled shareholders should appoint an attorney in fact to sign off the by-laws on their behalf. Funds in local and foreign currency for the initial capital contribution should be deposited in a local bank. There is no minimum amount required by law, but fi nancial institutions generally require a minimum initial deposit of S/.1,000 (approximately US$350).

Features:

• Limited liability: Shareholders' liability is limited to the par value of the shares they hold.

• Centralized management: Shareholders' Meetings, Board of Directors and Chief Executive Offi cer (General Manager).

• Transfer of interest: The transfer of shares is free; nevertheless, in the case of closely held corporations, the existing shareholders have the right of fi rst refusal in the event that shares are being transferred to a third party.

• Continuity: Death, illness, bankruptcy, and/or retirement or resignation of any shareholder does not cause the dissolution of the corporation.

2. Close corporations

Close corporations resemble limited liability companies and must have a minimum of 2 and a maximum of 20 shareholders. Shares cannot be registered in the Public Registry listed on the Stock Exchange.

Features:

• Limited liability: Shareholders' liability is limited to the par value of the shares they hold.

• Management: Shareholders' Meeting (resolutions may be adopted without a meeting) and Chief Executive Offi cer (General Manager). A Board of Directors is optional.

• Transfer of interest: The law establishes a right of fi rst refusal to the existing shareholders in case of transfer of shares; however, this right may be eliminated from the by-laws.

Ernst & Young42

3. Public corporations

Public corporations are intended basically for companies with a large number of shareholders (more than 750 shareholders) or for which an Initial Public Offering has been made, or have debts that can be converted to shares. They must be registered in the Public Registry listed on the Stock Exchange.

Features:

• Limited liability: Shareholders’ liability is limited to the par value of the shares they hold.

• Centralized management: Shareholders' Meetings, Board of Directors and Chief Executive Offi cer (General Manager).

• Supervision: Public corporations are subject to the supervision of the Stock Exchange Superintendency (SMV).

• Transfer of interest: Transfer of shares is completely free. No restrictions or limitations are permitted.

4. Limited-liability companies

A minimum of 2 and a maximum of 20 partners is required. This type of company does not issue shares. The incorporation procedures are the same as those for all other corporations.

Features:

• Limited liability: Partners are not personally liable for the company's liabilities.

• Centralized management: Partners' Meeting, Board of Directors and Chief Executive Offi cer (General Manager).

• Transfer of interest: Transfer of partners' interest to third parties is subject to approval by the existing partners (right of fi rst refusal is mandatory) and must be registered in the Public Records Offi ce.

• Continuity: Death, illness, bankruptcy, and/or retirement or resignation of any partner does not cause the dissolution of the legal entity.



5. Branches

A parent company agreement is required to incorporate a branch in Peru, and it must be legalized by the Peruvian Consulate in the country of the home offi ce and certifi ed by the Peruvian Ministry of Foreign Affairs (MRE) if possible or, otherwise, it must be registered by the consulate in its country of origin. A Certifi cate of Good Standing from the parent company is also required. In accordance with the Business Corporation Act (LGS), branches of foreign companies may be legally incorporated in Peru as any type of legal business entity provided for in the Business Corporation Act.

TaxesIII.

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III. Taxes

The following table shows the list of taxes according to their nature (direct, excise and municipal). Each is described in detail below.

Direct taxes Excise taxes Municipal taxes

Income Tax Value Added Tax Property Tax

Temporary Net Assets Tax(ITAN)

Selective Consumption Tax(ISC)

Property Transfer Tax

Tax on Financial Transactions Vehicle Property Tax

1. Direct taxes

a. Income Tax (IR)

• �Legal entities

Corporations incorporated in Peru are subject to Income Tax on a worldwide income basis. Non-domiciled corporations, branches and permanent establishments of foreign companies that are located in Peru are only taxed on Peruvian source income.

The tax year ends on December 31, with no exceptions. Income tax returns for corporations, branches and individuals should be filed by March 31 of the following year.

The corporate income tax rate is 30% and is applied over the net income (after the deduction of expenses incurred in the generation of income or maintenance of the source).

Taxpayers can select between the following two systems to obtain relief for their losses:

− Losses can be carried forward for four consecutive years, beginning with the first subsequent year in which the losses arise; or,

− Losses can be carried forward indefinitely, but with an annual limit equivalent to 50% of the taxpayer's taxable income of each subsequent year.

Loss carrybacks are not permitted.

Income obtained by non-domiciled entities are subject to a withholding income tax, depending on the type of income, as follows:

Ernst & Young48

Withholding tax rate on income of non-domiciled companies

Income Rate

Dividends and other forms of profit distribution, as well as remittance of profits from the branch

4.10%

Interest paid to non-domiciled companies, provided only when certain requirements are met 4.99%

Interest paid to foreign related companies 30.00%

Technical assistance services used in Peru and affecting Peruvian income 15.00%

Royalties 30.00%

Capital gains deriving from the disposal, redemption, surrender or call of negotiable securities (shares, bonds or other securities issued by corporations incorporated in Peru) through the Lima Stock Exchange

5.00%

Capital gains deriving from the disposal, redemption, surrender or call of negotiable securities (shares, bonds or other securities issued by corporations incorporated in Peru outside the Lima Stock Exchange (over the counter)

30.00%

Income from activities performed partially in Peru and partially abroad by non-domiciled companies, including those obtained by their branches or permanent establishments, are subject to the following effective tax rates:

Activities Net income (%) Effective taxrate (%)

Air transport 1 0.3

Maritime transport 2 0.6

Vessel lease 80 8.06

Aircraft lease 60 6.07

Supply of transport containers 15 4.5

6 The withholding rate for these activities is 10%7 The withholding rate for these activities is 10%

(it continues)


III. Taxes

Activities Net income (%) Effective taxrate (%)

Demurrage of containers 80 24.0

Insurance 7 2.1

International news agencies 10 3.0

Motion picture distribution 20 6.0

Television broadcastingrights assignment

20 6.0

Telecommunication services 5 1.5

• Thin Capitalization rules

Under these rules, interest paid by domiciled taxpayers to related or associated companies is not income tax deductible in the portion that exceeds the result of applying a coefficient (debt/equity ratio) equivalent to three times the taxpayers' net equity at the end of the preceding year.

• Transfer Pricing rules

Transfer Pricing rules are based on the arm's length principle as interpreted by the Organization for Economic Co-operation and Development (OECD).

In Peru, however, these rules do not only apply to transactions between related parties, but also to transactions with companies domiciled in tax havens. Moreover, these rules must be considered not only for Income Tax purposes but also for Value Added Tax (VAT) purposes.

• Individuals

Under the Peruvian income tax system, Peruvian citizens domiciled in Peru are subject to taxation on their worldwide income, regardless of the country from which it derives, from which payments are made, or the currency in which income is received. By contrast, non-domiciled individuals are only taxed in Peru on their Peruvian source income.

However, after residing in Peru for a period in excess of 183 days within any 12 - month period, foreign nationals will be considered residents and, therefore, taxed on a worldwide income basis.

An individual's status as domiciled or non-domiciled must be verified based on the individual's condition at the beginning of the tax year (January 1). Any change during the tax year will affect the residence status as from the following year.

(continuation)

Ernst & Young50

Tax rates for domiciled individuals in case of fourth and fifth bracket income, derived from independent and dependent personal services, are determined using a three-bracket cumulative scale, as shown below:

Income Tax rates for individuals

Scale Accumulatedprogressive rate

Up to 27 tax units (tax unit is currently equivalentto S/.3,650)

15%

In excess of 27 and up to 54 tax units 21%

Any excess 30%

For salaries, wages and other remuneration derived from independent and dependent work, the minimum non-taxable income is established at seven tax units.

Since January 1, 2009, income obtained by domiciled individuals from the lease, sublease and assignment of goods (first bracket income) and also other capital income (second bracket income) are levied with an effective rate of 5%.

b. Temporary Net Assets Tax (ITAN)

The Temporary Net Assets Tax (ITAN) is equivalent to 0.4% of the total value of assets in excess of S/.1,000,000, determined at December 31 of the previous year. Companies in a pre-operational stage are excluded. The ITAN payments can be used as a tax credit. A refund may be requested for any balance not used in the current year.

To avoid double taxation issues, subsidiaries and branches of foreign companies may elect to reverse the order of the tax credit so the Peruvian income tax is creditable against the ITAN and not vice versa. In such a way, taxpayers in their country of origin might be able to claim as foreign tax credit the Income Tax paid in Peru and not the ITAN.

c. Tax on Financial Transactions (ITF) and means of payments

A 0.005% tax is generally imposed on deposits and withdrawals in Peruvian bank accounts.

Any payment in excess of S/.3,500 or US$1,000 must be made through the Peruvian banking system using the so-called Means of Payment, which include bank deposits, wire transfers, pay orders, credit and debit cards and non-negotiable checks.


III. Taxes

Not using these methods of payment would mean that the corresponding cost or expense of the payment cannot be recognized for income tax purposes. In addition, any Value Added Tax (VAT) related to the acquisition of goods and services cannot be used for tax credit.

2. Excise taxes

a. Value Added Tax (VAT)

• Taxable base and application

Value Added Tax (VAT) is levied on the consumption of goods and services in Peru with an 18% tax rate.

The Value Added Tax (VAT) follows the debit/credit system, under which the VAT paid on sales is offset against the VAT paid on purchases. The VAT that is not used as credit in a particular month may be applied in the following months until it is consumed.

• Early VAT recovery system

Companies developing projects in which the pre-operational stage is longer than two years can request the early recovery of the VAT before starting operations. To do this, the company must sign an investment agreement with the Peruvian State requesting it through ProInversión. The investment, which must take place during the preoperational stage, can not represent less than US$5 million, except the case of investments focused on the agrarian sector, which is excempt from this requirement.

• Definitive VAT recovery system

This system applies to: (i) individuals and legal entities who are the holders of mining concessions, and (ii) investors who have entered into license agreements or service contracts according to the Organic Law of Hydrocarbons. In the first case, the beneficiary of the system must not be in the production stage and should have entered into an Exploration Investment Agreement. In the second case, the investor must be in the exploration stage of such agreements.

b. Selective Consumption Tax (ISC)

The tax applies to the consumption of specific goods, such as fuels, cigarettes, beers, liquors, soft drinks, etc. It is applied under three systems: (i) specific, which involves a fixed amount in local currency for each measurement unit; (ii) at the value, based on a percentage of the sale price; and (iii) sale price, a percentage over the suggested retail price.

Ernst & Young52

3. Municipal taxes

a. Property Tax

Property Tax is an annual municipal tax that is levied over the value of real property on urban or rustic land. The tax considers the land, buildings, and fixed or permanent facilities.

The tax rate is a cumulative scale varying between 0.2% and 1.0%, depending on the appraisal value of the property.

b. Property Transfer Tax

Property Transfer Tax is levied on the transfer of real property, with or without valuable consideration, in any form or manner, including sales in which the ownership rights are not transferred to the buyer until the total price is paid.

The tax base is the sale price of the property. The tax rate is 3%, to be paid by the buyer.

c. Vehicle Property Tax

The Vehicle Property Tax is an annual tax, levied on the property of automobiles, trucks and station wagons manufactured within the country or imported that are three years old or less. The three years are calculated from the first filing of the automobile in the Vehicle Property Registry.

The tax base is determined by the original acquisition value, importation or entry of the asset. The applicable tax rate is 1%.

4. Customs duties

The importation of goods is subject to customs duties. The tariffs in force Ad Valorem are 0%, 6% and 11%.

Additionally, the importation of goods is levied with the Value Added Tax of 18%, as well as other taxes, such as Selective Consumption Tax (ISC), Antidumping Duties, Compensatory Duties, among others, depending on the type of goods imported.

For security and public health reasons, the importation of certain goods is restricted.

The application of taxes and custom duties is summarized below:

Tax Rate Taxable Base

Customs duties (a) 0%, 6% y 11% CIF value

Value Added Tax (VAT) (b) (c) 18% CIF + customs duties

(a) The customs duties rate depends on the imported good(b) The Value Added Tax (VAT) can be used as tax credit by the importer(c) Certain goods are also subject to the Selective Consumption Tax (ISC)


III. Taxes

a. Drawback

The recovery of customs duties or drawback allows production or export companies to recover, in whole or in part, the customs duties they paid on the import of raw materials, inputs, intermediate products and parts or components incorporated or consumed in the production of goods for export, provided that the CIF values of the imported good does not exceed 50% of the FOB value of exports. The recovery rate in effect until June 30, 2010 is equivalent to 8% of the FOB value of the exported goods, with a maximum limit of 50% of the production cost. As of July 1, 2010 the recovery rate in effect is equivalent to 6.5% of the FOB value of the exported goods, and as of January 1, 2011, it is equivalent to 5%.

b. Free Trade Zones

• Free Trade Zone of Tacna - Zofratacna

The Free Trade Zone of Tacna – Zofratacna was created in 2002 with the purpose of promoting investment in the south of the country through the establishment of companies engaged in the following activities: industry, agro-industry, tolling, assembly and storage services, distribution, unpacking, packing, packaging, etc.

The tax exemption system enacted for this includes Income Tax, Value Added Tax (VAT), the Selective Consumption Tax (ISC), the Municipal Promotion Tax, as well as any other existing or future taxes, providing the activities are developed within the free trade zone.

Foreign goods imported to the zone shall not be subject to the payment of customs duties, given that Zofratacna is a special customs zone. In the event that such goods are transferred to the Commercial Zone of Tacna, a unique special tariff will be paid; however, if the goods are sent to any other destination within Peruvian territory, all the taxes that are levied on imported goods must be paid.

This system ill be in force until 2032, with the exception of the Income Tax System which will conclude on December 31, 2033.

• Free Trade Zone of Puno - Zeedepuno

Just as Zofratacna, the free zone known as Zeedepuno was established as an extra-territorial customs area not only to provide tariff benefits to foreign goods imported to the zone, but also includes a tax exemption system that includes Income Tax, Value Added Tax (VAT), the Selective Consumption Tax (ISC), Municipal Promotion Tax, as well as other taxes, either from the central, regional or municipal government, whether currently existing or existing in the future, including those that require a specific exemption, provided that the industry, agro-industry, tolling, assembly and storage services, distribution, unpacking, packing, etc. activities, are performed within said zone.

This system will be in force until 2027, with the exception of the Income Tax system, which will conclude on December 31, 2028.

Ernst & Young54

• Ceticos

In addition to the free trade zones, there are certain Exportation, Transformation, Industrial, Commercialization and Services Centers, known as Ceticos, located at the ports of Ilo, Matarani and Paita, and in Loreto.

The Ceticos are geographical areas designed by law that are treated as special primary customs zones. In the Ceticos areas, it is possible to provide repair and manufacturing services, as well as to modify, combine, pack, toll, transform, actively enhance, distribute, store, among other activities. The entry into the country of goods is not subject to payment of import duties and taxes. However, the entry of goods from the Ceticos to the rest of the country is subject to payment of import duties and other import taxes.

With regard to all other taxes, companies incorporated in the Ceticos of Ilo, Matarani and Paita (located near the ports of the same name) with no less than 92% of their annual transactions from the export of the goods produced, will be exempt from Income Tax, Value Added Tax (VAT), Selective Consumption Tax (ISC), Municipal Promotion Tax, as well as all other existing or future taxes, duties, or contributions from the central, regional and municipal governments, including those that require a specific exemption, until December 31, 2022.

In the case of the Ceticos Loreto, it is important to mention that the term for incorporation of companies in this zone, as well as the tax exemption system, is for 50 years, calculated as from May 24, 1998. In the present time, Ceticos Loreto lacks of regulation and a defined zone.

5. Tax stability agreements

The Private Investment Promotion Agency (ProInversión) on behalf of the Peruvian State, guarantees foreign investors legal and tax stability. To be eligible, its required to make a contribution to an established (or in process of establishment) company for a minimum of US$10 million in the mining and hydrocarbon sectors, US$5 million in any other economic activity for no longer than 2 years, or one must acquire 50% of the shares of a company participating in a privatization process.

6. Mining laws

• Law 29789 – Special Mining Tax (IEM)

The Special Mining Tax (IEM) in force as of October 1, 2011, applies to owners of mining concessions and concessionaires who engage in the exploitation of mineral resources to sell metallic mineral resources, as well as sales based on the consumption and unjustified withdrawal of those goods.

The IEM is determined and paid on a quarterly basis according to a progressive accumulative scale of operating margins at marginal rates of between 2.00% and 8.40%. Technically, the IEM is based on the sum of each operating margin increment, multiplied by the progressive tax rate according to the following table and definitions:


III. Taxes

Special Mining Tax (IEM)

Scale N°Scale of operating margin

Marginal rateLower limit Upper limit

1 0% 10% 2.00%

2 10% 15% 2.40%

3 15% 20% 2.80%

4 20% 25% 3.20%

5 25% 30% 3.60%

6 30% 35% 4.00%

7 35% 40% 4.40%

8 40% 45% 4.80%

9 45% 50% 5.20%

10 50% 55% 5.60%

11 55% 60% 6.00%

12 60% 65% 6.40%

13 65% 70% 6.80%

14 70% 75% 7.20%

15 75% 80% 7.60%

16 80% 85% 8.00%

17 More than 85% 8.40%

Operating margin = Operating profit x 100 Income from sales

Where:

− Operating Profit: Income generated by sales of mineral resources less: (1) cost of goods sold and (ii) operating expenses, including sales expenses and administrative expenses. Exploration expenses must be distributed proportionally during the useful life of the mine. Costs and expenditures incurred in the consumption and unjustified withdrawal of mineral resources are not deductible, nor are interests independently if they have been capitalized as part of the sales expenses or treated as operating expenses.

− Income from sales: Income generated by the sale of metallic mineral resources, with certain adjustments, such as adjustments from final statements of amounts due, discounts, refunds and other concepts of a similar nature that correspond to market practices.

The amount actually paid in IEM is considered a deductible expense when determining the Income Tax for the year in which it was paid.

Additionally, those in the mining industry must submit a tax statement and pay the corresponding IEM for each quarter, within 12 business days of the second month following its generation, in the form and conditions established by the Peruvian Tax Administration (SUNAT).

Ernst & Young56

• Law 29790 – Special duty on mining (GEM) / Supreme executive order 173-2011-EF – GEM Regulations

The Special Duty on Mining (GEM) in force as of October 1, 2011, is a “voluntary” payment applicable to the holders of mining concessions and the consignees who engage in the exploitation of metallic mineral resources that, based on and as of the signing of the Investment and Promotion Guarantees and Measures Agreements contained in the Mining Law, cannot be subject to any changes in legislation linked to the IEM and to mining royalties.

The GEM does not qualify as a tax insofar as it cannot be forcibly collected according to law and be considered sufficient for the purposes of ascertaining its source.

Similar to the IEM, the GEM is determined and paid every quarter for each one of the Guarantee Agreements, according to the cumulative progressive scale of operating margins with marginal rates of between 4.00% and 13.12%, according to the following:




1 0% 10% 4.00%

2 10% 15% 4.57%

3 15% 20% 5.14%

4 20% 25% 5.71%

5 25% 30% 6.28%

6 30% 35% 6.85%

7 35% 40% 7.42%

8 40% 45% 7.99%

9 45% 50% 8.56%

10 50% 55% 9.13%

11 55% 60% 9.70%

12 60% 65% 10.27%

13 65% 70% 10.84%

14 70% 75% 11.41%

15 75% 80% 11.98%

16 80% 85% 12.55%

17 More than 85% 13.12%

To such effect, Supreme Executive Order 173-2011-EF specifies that the operating expenses to be considered in order to determine the GEM shall not include royalties, the IEM, the GEM or profit sharing. Likewise, it indicates that the adjustments made as a result of final statements of amounts due, discounts, refunds and all other similar concepts shall affect the calculation base during the calendar quarter in which they are granted or made, so that those expenses not fully absorbed in one particular calendar quarter cannot affect the base for calculation in later quarters.


III. Taxes

In contrast to the IEM, the mining royalties established by Law 28248 and contractual royalties that are due after signing the Contract may be discounted in order to determine the GEM, which, if it exceeds the amount of the tax, can be carried over to the following calendar quarters until reaching zero. Additionally, the amount actually paid for the GERM shall be considered a deductible expense when determining the Income Tax during the period in which it is paid.

The filing and payment of this duty/tax is to be made in Peruvian currency, and the mining companies that are authorized to carry their books in foreign currency shall need to convert each of the components to be considered in the filing to local currency, using the exchange rate published by the Superintendency of Banking, Insurance and Private Pension Fund Management Companies (SBS) on its date of payment or maturity date, whichever comes first.

Lastly, this Supreme Executive Order has approved the form of the Agreement in order to apply the GEM that shall be signed by agents in the mining industry and the Peruvian State in order to make this tax effective. According to Article 11 of the form, the signing of this agreement does not modify in any manner nor waive, in whole or in part, the Guaranty Agreement and the measures to promote investment signed by the agency in the mining industry.

Supreme Executive Order 173-2011-EF was published on September 29, 2011.

• Law 29788 – Amendment to the mining royalties law (Law 28258)

By means of Law 19788, effective as of October 1, 2011, Articles 2, 3, 4, 6 and 11 of Law 28258 were amended so that the mining royalty charged to mining concessionaires is calculated by applying an cumulative progressive tax of 1% to 3% on the value of sales.

The mining royalty applies to holders of mining concessions and concessionaries that exploit metallic and non-metallic mineral resources.

The amendment established that the mining royalty is to be calculated on a quarterly basis, based on the cumulative progressive scale of operating margins at a marginal rate of between 1% and 12.00%. Thus, the amount of the mining royalty to be paid will be the greater sum when comparing the result of applying the marginal rate to the operating profit, and the 1% of the income generated by the sales made in the calendar quarter.

The base of the mining royalty and the calculation are the same as those established to determine the IEM and the GEM:

Ernst & Young58




1 0% 10% 1.00%

2 10% 15% 1.75%

3 15% 20% 2.50%

4 20% 25% 3.25%

5 25% 30% 4.00%

6 30% 35% 4.75%

7 35% 40% 5.50%

8 40% 45% 6.25%

9 45% 50% 7.00%

10 50% 55% 7.75%

11 55% 60% 8.50%

12 60% 65% 9.25%

13 65% 70% 10.00%

14 70% 75% 10.75%

15 75% 80% 11.50%

16 More than 85% 12.00%

Ernst & Young59

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1. Employment system

a. For national workers

Indefi nite term contracts are the regulatory provision for hiring in Peru, although as an exception, fi xed term and part-time contracts can also be signed. The principal features of each of these contracts is detailed below:

�• Indefinite term contracts: these have no expressly defined term for termination. This form of employment contract grants the workers all the labor rights and benefits in force under Peruvian law, which are detailed in point 2.

�• Fixed term contracts: provide workers with all the rights and benefits granted to workers hired for an indefinite term. The legislation requires proof for this form of contract of an objective cause or motive that warrants temporary hiring (for example, start-up of a new business, works or specific service, substitute, etc) and its validity is subject to compliance with the requirements of the law.

�• Part-time contracts: these contracts govern labor relations that cover work of a weekly average of less than four hours per day, either for a fixed or indefinite term. Workers hired under this system are eligible for all labor benefits under the law, except for i) compensation for arbitrary dismissal; ii) severance pay (CTS); and iii) vacation time of 30 days (they only have the right to six days vacation per year).

All contracts permit a trial period, during which the workers have no right to compensation in the event of arbitrary dismissal. The trial period is counted from the start of the labor relationship and must be a maximum term of i) three months for all workers in general; ii) six months for trusted workers8, and iii) 12 months for management staff9.

b. For expatriates

The labor relations governing foreign citizens entering Peru to render services for a domiciled company are governed by employment contracts for foreign personnel. These workers have the right to the same benefi ts provided to all workers in the private business workforce, and are subject to the same taxes and contributions.

As a general rule, foreign workers must not exceed 20% of the total workforce in a company. Additionally, the total remuneration that a foreign worker receives must not exceed 30% of the total cost of the payroll. Exceptions to these limits may be made in the case of professionals and special technical staff, or for management staff for a new business activity or business adjustment, etc.

8 A trusted worker is understood to be a person who works in personal or direct contact with the employer or management staff, with access to confidential industrial, commercial or professional information and to any and all information that is considered reserved. Likewise, persons whose opinions or reports are presented directly to the management staff, contributing to the decision-making of the business.

9 Management personnel are those who represent the employer when dealing with other workers or with third parties, or who substitute the employer or share functions of administration or control or whose activity or degree of responsibility influence the results of the business.

Ernst & Young62

None of the limits on number of personnel and amount of salary are applicable to foreign workers who render services in Peru on an immigrant visa, who are married to Peruvian citizens, or have children of Peruvian nationality, parents or siblings, and foreign investors with a permanent investment in Peru of at least 5 UITs, among other exceptions.

2. Current labor benefi ts

Workers have the right to the following fringe benefi ts, the cost of which is undertaken by the worker:

Benefi t Amount / Rate applicable

VacationEquivalent to 30 calendar days of rest, with one month of paid remuneration

Legal bonus 2 months’ remuneration per year

Severance pay (CTS) 1.1666 month’s remuneration per year

Profi t sharing Between 5% and 10% of income before taxes

Family allowance S/.67.50 per month

Extraordinary bonus9% of the legal bonuses (valid until December 31, 2014)

�• Vacations: The right to 30 calendar days of paid vacation per complete year of service, providing they meet the vocational record, which is a minimum of days effectively worked as required by law.

�• Legal bonuses: Two bonuses per year, the fi rst in July (Independence Day holidays)

and the second in December (Christmas). For workers who leave their job before the months of July or December, they are entitled to receive the proportional payment of this benefi t for the full months completed on the job, providing they have worked at least one full month (incomplete bonus).

�• Severance pay (CTS): This is a fringe benefi t to cover contingencies arising from termination of employment and promotion of the workers and their family. The payment is deposited in the workers’ bank account.

�• Profi t sharing: Companies with more than 20 workers that develop activities that generate business income are required to distribute a percentage of their annual income before taxes among their workers. The percentage of the share is fi xed by law, and depends on the company’s principal activity, as follows:

Type of company Percentage

Fishing, telecommunications and industrial businesses 10%

Mining companies, wholesale and retail business, and restaurants 8%

Companies with other activities 5%



�• Family allowance: Workers who have one or more dependent children under the age of 18, or children over 18 enrolled in higher or tertiary studies, have the right to this benefi t. The amount is equivalent to 10% of the Minimum Wage.

�• Extraordinary bonus – Law 29351: The extraordinary bonus is a temporary income (in force until December 2014) not considered as remuneration, that the employer gives to its workers when payment of the July and December bonuses is made. The amount is equivalent to 9% of the legal bonuses.

With workers who receive a monthly salary of more than S/.7,300, the worker can negotiate an annual comprehensive remuneration in which all the benefi ts detailed above are added, with the exception of profi t sharing, and which is paid directly to the worker in monthly installments.

3. Taxes and contributions that are charged on remunerations

The worker is responsible for the payment of the following taxes and contributions:

Taxes / Contributions Rate applicable

Social Security for Health (EsSalud) 9%

Mandatory Life Insurance Depending on the type of policy

Occupational Life and Disability Insurance Depending on the type of policy

Pension System13% for the National System or 13.54% for the Private System (approximately)

��• Social Security for Health (EsSalud): This contribution is paid by the worker and is designed to fi nance the social health system (EsSalud) so that the system can provide health services to workers and fi nancial assistance in case of disability, through the payment of subsidies. Its collection is undertaken by the Peruvian Tax Administration (SUNAT) to which the workers make the payment. The amount contributed is equivalent to 9% of the worker's remuneration. If the company provides health coverage to its workers using its own resources or through a Health Services Provider Company (Entidad Prestadora de Salud, EPS) it can request a credit of up to 25% against the EsSalud contribution, providing it complies with the limits established by law.

��• Mandatory Life Insurance: This is a collective insurance given to workers with more than four years of service for the same employer. The premium depends on the number of insured workers, the work they carry out and, in general, the terms agreed on with the insurance company.

��• Occupational Life and Disability Insurance: A mandatory insurance to be paid by companies whose activities carry a high level of risk. The contract for health services may be made with EsSalud or with a Health Services Provider Company (EPS); a contract for the fi nancial benefi ts can be made with the Government Agency for

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Pension Fund Management (ONP) or with a private insurance company. The rates depend on the type of activity and/or the terms agreed on with the insurance company.

�• Pension system: The workers can join the National Pension System (SNP) or the Private Pension System (SPP), and both are exclusive. This contribution is to be covered fully by the worker, with the employer only responsible for its collection.

4. Termination of employment contract

An employment contract terminates under the following circumstances:

��• Termination of the time-period or condition subsequent of fi xed-term contracts

• By agreement between the worker and the employer, which should be made in writing

• Resignation of the worker, who must provide 30 days prior notice

• Due to permanent, absolute disability or death of the worker

• Retirement of the worker

• Justifi ed dismissal, in which the cause must be related to the skill or conduct of the worker, according to conditions established under Peruvian law

• In the circumstances of mass redundancy provided for under Peruvian law

A dismissal is subject to verifi cation of an objective cause that justifi es the action, as provided by law. If the cause is non-existent, the employer will be penalized with the payment of a compensation. However, the Constitutional Court has established certain cases in which the worker can also request re-incorporation which are summarized below:

Type of dismissal Description Consequences

Uncaused dismissal worker

When the employer does not give a legal cause or motive

Reincorporation / Compensation at the discretion of the worker

Fraudulent dismissal worker

When the employer falsely charges the worker of committing a serious misdemeanor

Reincorporation / Compensation at the discretion of the worker

Void dismissal When the measure oversteps the fundamental rights of the worker

Reincorporation

Dismissal with reasonable charge of serious misdemeanor

When the grave misdemeanor is not proven during the process although due process was followed as required by law

Compensation

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Type of dismissal Description Consequences

Indirect dismissal When the worker is a victim of acts of hostility comparable to dismissal

Compensation

The compensation only proceeds once the trial period is completed (fi rst three months of the contract) and has a limit of 12 monthly remunerations. In the case of workers who are hired for an indefi nite term, the amount to be paid is one month and a half’s remuneration for each year of completed service. In contrast, in the case of workers hired on a fi xed-term contract, the compensation is one and a half month’s remuneration for each month not worked until the expiration of the contract. In both cases, the compensation is paid in twelfth and thirtieth fractions per year.

Management staff or trusted workers that are hired as such cannot be reincorporated, and are only entitled to receive a compensation for dismissal.

5. Immigration

Foreigners can enter Peru under any of the following migratory qualifi cations:

Visa Types of Visa Activities permitted

Tourist Visa Temporary Limited to tourism visits, recreational activities or similar activities. Paid-for or lucrative activities are not permitted.

Business Visa Temporary The person can undertake business, legal or similar negotiations. They are permitted to sign contracts or transactions. The person cannot perform activities that are paid for or lucrative or generate an income from a Peruvian source, except in the case of Director’s remuneration for companies domiciled in Peru or as speaker or international consultancy fees as part of a service contract that does not exceed thirty (30) calendar days, consecutive or cumulative, within any period of twelve (12) months.

Work Visa Temporary / Resident This visa allows the person to work in Peru on a contract approved by the Ministry of Labor.

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Visa Types of Visa Activities permitted

Designated work Visa Temporary This visa permits workers of a foreign company to carry out work in Peru for a limited and defi nite period for a concrete task or function or a job that requires professional, commercial, technical or other highly specialized knowledge. They are also permitted to sign contracts or transactions.

Work Visa for service providers

Temporary / Resident The person can make investments or carry out their profession independently.

Immigrant Resident Providing they enter the country to take up residence, they can develop their activities on a permanent basis.

Student Visa Temporary / Resident The person cannot receive an income from a Peruvian source, except for professional internships or work during vacations, with the prior authorization of the competent authority.

As a general rule, income obtained for personal work or civil, commercial or any other type of business carried out within Peruvian territory is considered to be a Peruvian source income. However, non-domiciled individuals entering the country temporarily to perform the following activities are not taxed for income obtained in their home country, since they are not considered a Peruvian source income:

• Activities that precede a foreign investment or any other business

• Supervision or control of an investment or business, i.e. gathering data or information, meeting public or private sector personnel, etc.

• Hiring local personnel;

• Signing agreements or similar documents

If foreigners come from countries with which Peru has agreements to avoid double taxation (Chile, Canada, Brazil, Ecuador, Colombia and Bolivia) other tax regulations may apply.

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Accounting standards V.

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V. Accounting standards

The Peruvian Business Corporation Act (LGS) establishes that the fi nancial statements of companies incorporated in Peru must follow the general accounting principles accepted in Peru and other applicable legal provisions. The Peruvian Accounting Standards Board (CNC) has established that the general accounting principles are basically the standards issued by the International Financial Reporting Standards Board (IFRS) and the specifi c provisions approved for particular businesses (banks, insurance companies, etc.). Likewise, on a complementary basis, the U.S. general accounting principles, GAAPs, are applicable.

The Peruvian Accounting Standards Board (CNC) is responsible for issuing the accounting standards and methodologies that apply to both private business and government entities.

The CNC adheres to the standards approved by the IFRS, which are explicitly approved by the CNC and published in the offi cial gazette El Peruano, indicating their date of adoption.

Companies that issue debt or shares in the capital market are subject to regulation by the Stock Exchange Superintendency (SMV). Companies supervised by this institution must issue their fi nancial statements in accordance with the IFRS, and they are as effective in Peru as they are worldwide.

The annual fi nancial information given by companies supervised by the SMV must be audited and include the previous year for comparative purposes. Quarterly reports do not need to be audited. The audit must be conducted according to regulations of the International Auditing and Assurance Board issued by the International Federation of Accountants (IFAC).

Mandatory auditing has recently been approved for the fi nancial reports of all companies with assets or annual income greater than 3,000 UITs (approximately US$3 million).

Exhibits

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Exhibits

Principal regulatory entities in Peru

Principal regulatory entities Description

Banco Central de Reserva del Perú– BCRP

Tel: +51 1 613 2000www.bcrp.gob.pe

The bank is an autonomous constitutional institution of the Peruvian State. According to the Constitution, the obligations faculties of the Central Reserve Bank of Peru (BCRP) are to regulate the currency and the credit in the fi nancial system, manage international reserves under its care, and other functions indicated in the law that created the institution. Likewise, the Constitution orders the BCRP to issue coins and paper money and to periodically and accurately inform the country on the state of national fi nances. It also has the responsibility of maintaining monetary stability, avoiding the pressures of infl ation and depreciation on the economy.

Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual– INDECOPI

Tel: +51 1 224 7777Fax: +51 1 224 7800www.indecopi.gob.pe

INDECOPI promotes a culture of fair competition and protects all forms of intellectual property (trademarks, copyrights, patents and biotechnology).

Organismo Supervisor de la Inversión en Energía y Minería - OSINERGMIN

Tel: +51 1 219 3400+51 1 219 3410+51 1 427 4935

www.osinerg.gob.pe

OSINERGMIN is responsible for supervising and controlling compliance of legal and technical rules by companies in the electricity and hydrocarbons industries, as well as compliance with the legal and technical regulations related to conservation and environmental protection. It is also in charge of quality and quantity control of fuels and broader prerogatives within its right to control and sanction.

Organismo Supervisor de Inversión Privada en Telecomunicaciones - OSIPTEL

Tel: +51 1 225 1313 Fax: +51 1 475 1816www.osiptel.gob.pe

OSIPTEL is in charge of regulating and supervising the public telecommunications services market, regardless of the operating companies.

Agencia de Promoción de la Inversión Privada - Perú - ProInversión

Tel: +51 1 612 1200www.proinversion.gob.pe

ProInversión promotes private investment that does not depend on the Peruvian State in order to improve the country’s competitiveness and sustainable development and thus improve the population’s welfare.

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Principal regulatory entities Description

Superintendencia de Banca, Seguros y AFP - SBS

Tel: +51 1 630 9000 Fax: +51 1 630 9239www.sbs.gob.pe

SBS is in charge of regulating and supervising the fi nancial, insurance and private pension fund systems. Its main objective is to protect the interests of depositors, the insured, and pension fund affi liates.

Superintendencia Nacional de los Registros Públicos - SUNARP

Tel: +51 1 221 1401+51 1 221 0125+51 1 221 3100+51 1 221 3062+51 1 221 5839+51 1 221 3055

www.sunarp.gob.pe

SUNARP mission is to provide legal security and certainty on ownership of different rights registered with it, backed by modernization, simplifi cation, integration and the specialization of registration nationwide.

Superintendencia Nacional de Servicios de Saneamiento - SUNASS

Tel: +51 1 614 3200Fax: +51 1 614 3140www.sunass.gob.pe

SUNASS is a decentralized public institution that rules, regulates, supervises and controls water and sewage services provided, impartially and objectively protecting the interests of the State, investors and users.

Superintendencia del Mercado de Valores - SMV

Tel: +51 1 610 6300www.smv.gob.pe

The SMV is a specialized technical institution attached to the Ministry of Economy and Finance (MEF) designed to oversee the protection of investors, the effi ciency and transparency of the markets under its supervision, the correct shaping of prices, and the dissemination of all information necessary to achieve this. It has legal status to act in national administrative or constitutional law and has complete functional, administrative, economic, technical and budgetary autonomy.

Superintendencia Nacional de Administración Tributaria - SUNAT

Tel: +51 1 315 0730www.sunat.gob.pe

SUNAT also includes the National Customs Superintendency. It is in charge of managing, supervising and collecting internal taxes, with the exception of municipal taxes. It also manages and controls the international traffi cking of goods within the customs territory and collects the duties applicable by law, as well as facilitates foreign trade, inspects the international traffi cking of persons and means of transport, and develops the actions necessary to prevent and repress customs crimes.

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Exhibits

Investment promotion institutions

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Exhibits

1. Ministry of Foreign Affairs: Executive Offi ce for Economic Promotion

The Executive Offi ce for Economic Promotion is the Ministry of Foreign Affairs (MRE) institution responsible for encouraging and coordinating the promotion of trade, tourism and investment abroad. It is also in charge of relations with the domestic business sector. It arranges policies and coordinates tasks with business unions and public and private institutions engaged in international trade, investment and tourism.

Services offered by the Executive Offi ce for Economic Promotion

Trade Promotion Services (PCO)

�• Promotion of commercial opportunities• Promotion of exportable supply • Support in the solution of commercial disputes• Information requirements to our commercial offices abroad –

OCEX• Execution of commercial intelligence studies• Support to commercial missions and to their participation in fairs

abroad• Support in the settlement of exporters' commercial disputes• Execution of commercial events• Preparation of entrepreneurial agendas

Investment Promotion Services (PIN)

• Support to investor missions• Preparation of videoconferences• Distribution of investment information material• Participation in investment agreement negotiations• Promotion of investment opportunities

Tourism Promotion Services (PTU)

• Promotion of tourism• Support to gastronomy events• Promotion of tourism material• Support to tourism promotion fairs abroad• Support to agents involved in tourism promotion• Negotiation and promotion of tourism agreements• Promotion of tourism information obtained through our missions

• Contacts:

− Jaime PomaredaAmbassadorExecutive Director of the Executive Office for Economic PromotionTel: +51 1 204 3360

+51 1 204 3361Fax: +51 1 204 3362E-mail: [email protected]

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− Arturo JaramaMinisterDirector of Investment PromotionExecutive Office for Economic PromotionTel: +51 1 204 3384


− Cecilia GalarretaMinister CounselorDirector of Trade PromotionExecutive Office for Economic PromotionTel: +51 1 204 3368


− Ricardo Morote CanalesMinister CounselorCommerce Promotion DirectorExecutive Office for Economic PromotionTel: +51 1 204 3391Fax: +51 1 204 3393E-mail: rmorote�@rree.gob.pe

− Web page: www.rree.gob.pe(This site also contains the list of Descentralized Offices in Tumbes, Piura, Iquitos, Arequipa, Cusco, Puno and Tacna)

− Address: Jr. Lampa 545, Piso 10 – Lima 1

− Tel: +51 1 204 3361 / +51 1 204 3365 (OPE) +51 1 204 3369 (PCO) +51 1 204 3385 (PIN) +51 1 204 3392 (PTU)

− Fax: +51 1 204 3362

− E-mail: [email protected]

2. ProInversión

ProInversión is a public entity attached to the Ministry of Economy and Finance (MEF) in charge of executing national policy for promoting private investment.


Exhibits

Its mission is to promote investment via agents in the private sector, in order to boost Peru's competitiveness and sustainable development and thus improve the wellbeing of the population.

Likewise, its vision is to be recognized by investors and by the population as an “effi cient and strategic ally in the development of investment in Peru”.

ProInversión provides information to potential investors regarding the incorporation of a legal entity in Peru, identifying investment opportunities by industries, learning the processes of public private associations, etc.

• Contacts:

− Milton Von Hesse (Executive Director)

− Web page: www.proinversion.gob.pe

− Address: Main Office (Lima): Av. Enrique Canaval Moreyra Nº 150, piso 9, San Isidro – Lima 27

− Tel: +51 1 612 1200

− Fax: +51 1 221 2941


• Offi ces:

− Arequipa: Pasaje Belén N° 113 – Vallecito, Arequipa Tel: +51 54 608 114, Fax: +51 54 608 115

− Piura: Av. Chirichigno Mz. A – Lote 2, Urb. San Eduardo, Piura Tel / Fax: +51 73 310 081 / +51 73 309 148 / +51 73 305 082

3. PromPerú

PromPerú is a dependent entity of the Ministry of Foreign Trade and Tourism in charge of developing strategies to achieve an integrated and attractive image of Peru. This image will help develop domestic tourism and promote it to the world as a privileged destination for receptive tourism and investment. It is also in charge of promoting Peruvian exports.

• Objectives and guidelines:

− Design, coordinate, arrange and execute policies and actions with the objective of promoting Peru's image internationally and to promote its exports.

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− Manage and channel international technical and financial cooperation to meet its objectives.

− Participate in the strategic planning of promoting exports, as set out in Executive Order 805.

− Participate in the design, coordination and execution of a strategic plan to promote investment, in coordination with the competent entities.

− Design, coordinate, and execute actions to promote receptive tourism to Peru and domestic tourism to Peruvians.

− Manage and channel international financial and technical cooperation for the promotion of tourism to Peru.

• Contacts:

− Web page: www.promperu.gob.pe

− Address:

ª Main Office Exports and General Secretariat: Av. República de Panamá 3647, San Isidro - Lima, Peru

ª Main Tourism Office: Calle Uno Oeste 50, Edificio Mincetur, Pisos 13 y 14, San Isidro - Lima, Peru

− Tel: +51 1 616 7400 (Exports and General Secretariat Office)+51 1 616 7300 (Tourism Office)+51 1 616 7300 / +51 1 616 7400


• Decentralized Offices:

− Amazonas: Jr. Ortiz Arrieta 590 - Amazonas, Peru Tel: + 51 41 47 7292

E-mail: [email protected]

− Ancash: Pasaje Atusparia, of. 1 - Ancash, Peru Tel: +51 43 42 8812 E-mail: [email protected]

− Southwest Macro Region - Arequipa, Moquegua y Tacna: Calle Palacio Viejo 302 - Arequipa, Peru Tel: +51 54 281 535 / +51 54 288 447 E-mail: [email protected]


Exhibits

− Ayacucho: Jirón San Martín N°432, 2do piso, Huamanga - Ayacucho, Peru Tel: +51 66 312 998


− Cajamarca: Jr. Belén S/N, Conjunto Monumental Belén - Cajamarca, Peru Tel: +51 76 362 903 E-mail: [email protected]

− Callao: Jorge Chávez International Airport (Domestic Departure Lounge, National and International Arrivals and Public Reception Area) - Callao, Peru Tel: +51 1 574 8000 E-mail: [email protected]

− Southeast Macro Region - Cusco, Puno, Madre de Dios y Apurimac: Jirón Julio C.Tello C-11, Urb. Santa Mónica - Cusco, Peru Tel: + 51 84 223 592 / +51 84 223 661 E-mail: [email protected]

− Huánuco: General Prado N° 873 - Huánuco, Peru Tel: +51 62 513 532 E-mail: [email protected] / [email protected]

− Ica: Av. Grau N° 148 - Ica, Peru Tel: +51 56 214 327 E-mail: [email protected] / [email protected]

− Central Macro Region - Junín, Ayacucho, Huánuco, Huancavelica y Pasco: Av. Giraldez N° 634, Huancayo, PeruTel: +51 64 203 400 E-mail: [email protected]

− La Libertad: Jr. Junín N° 444 - Trujillo, Peru Tel: +51 44 231 114 E-mail: [email protected] / [email protected]

− Northeast Macro Region - Lambayeque, La Libertad y Cajamarca: Calle 7 de Enero N° 579 - Chiclayo, Peru Tel: +51 74 274 330 / +51 74 228 881 E-mail: [email protected]

− Lima - Larcomar - Lima, Peru Tel:+51 1 445 9400 E-mail: [email protected]

− Lima - San Isidro: Jorge Basadre 610 - Lima, Peru Tel:+ 51 1 616 7300 Ext. 1205 and 1216 / +51 1 616 7400


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− East Region - Loreto, San Martin, Ucayali y Amazonas: Av. Yavarí N° 363,Oficina 45 - Iquitos, Peru

Tel:+51 65 221 703 / +51 65 232 833 E-mail: [email protected]

− Madre de Dios: Jr. Ica N° 1662 - Puerto Maldonado, Peru Tel:+51 82 571 897 E-mail: [email protected] / [email protected]

− North Region - Piura y Tumbes: Jirón Ayacucho 377 - Plaza de Armas - Piura, PeruTel: +51 73 320 249 E-mail: [email protected]

− Puno: Jirón Ayacucho 682 - Puno, Peru Tel:+51 51 351 261 E-mail: [email protected]

− San Martin: Jr. Manco Cápac N° 196 - Tarapoto, Peru Tel: +51 42 522 872 E-mail: [email protected]

− Tacna : Av. Alfonso Ugarte N° 56 - Tacna, Peru Tel: +51 52 424 961 E-mail: [email protected] / [email protected]

Peru Country Brand

This project is led by PromPerú (Commission for the Promotion of Peru for Exports and Tourism) with support from the Ministry of Foreign Affairs (MRE) and ProInversión. The primary objective of the Peru Country Brand is to endorse the country’s image, building and protecting its international reputation. It therefore seeks to become the seal that accompanies everything that originates in Peru and that represents the country beyond its borders. It focuses on three large promotion areas:

• Tourism:

This is centered on promoting Peru as a unique and comprehensive tourist destination that covers gastronomy, archaeology, culture, etc.

• Exports:

Backs Peruvian products to the world, based on the premise that Peruvian exports are singular, unique and far from being mass-produced, but above all of very good quality.

• Investment:

Promotes the country’s positive business climate and encourages investment with the presentation of Peru as a land full of opportunities and with an enviable growth.


Exhibits

4. ComexPerú

ComexPerú is the private association that groups the leading companies involved in foreign trade in Peru. Its main purpose is to contribute to the improvement of competitive conditions within a free market, which will make Peru an attractive destination for private investment.

Objectives and guidelines:

• Promote the development of foreign trade

• Defend the free market

• Encourage private investment

Contacts:

- Eduardo Ferreyros (General Manager)

- Web page: www.comexperu.org.pe

- Tel: +51 1 625 7700

- Fax: +51 1 625 7701

5. CONFIEP

The National Confederation of Private Business Institutions (CONFIEP) brings together and represents private business activities within Peru and abroad. Its principal objective is to contribute to the process of sustained economic growth, based on investment and job creation from the perspective of individual effort and initiative, the promotion of entrepreneurship and private property.


• Business unity: strengthen the union between Peruvian business entrepreneurs to build an order in which free enterprise and market economy are the distinguishing features.

• Representation: act as the principal spokesperson for entrepreneurs nationwide before the State, and public and private forums.

• Services: promote greater communication and coordination between business sectors, support, back, and provide advice to the business community.

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Contacts:

- Web page: www.confi ep.org.pe

- Address: Av. Víctor Andrés Belaúnde 147, Edifi cio Real Tres, Of. 401, San Isidro, Lima - Peru

- Tel: +51 1 415 2555

- Fax: +51 1 415 2566

6. Procapitales

The Association of Capital Markets Business Promoters (Procapitales) brings together the principal actors of the market, channeling their concerns and proposals. It acts as a business guild to focus fundamentally on promoting investment and capital markets. It speaks on behalf of its associates to the public sectors with proposals to reduce legal costs and bureaucratic barriers that impede easy access to the market. The institution’s principal objective is to encourage an effi cient legal framework and appropriate corporate governance practices.


• Promote the development of new investment instruments.

• Encourage access to new issuers of securities, for fixed as well as variable incomes.

• Promote the mobilization of institutional investor resources through new intermediary vehicles.

• Actively promote improvement in legislation and the regulation of capital markets.

• Publicize and encourage the implementation of good corporate governance practices.

• Create a permanent, proactive and organized space for dialogue and interaction between agents in the market, including the regulatory and supervisory institutions.

• Contribute to the institutional strengthening of agents participating in the capital markets.

Contacts:

- Web page: www.procapitales.org

- Address: Las Camelias 820 Of. 601, San Isidro, Lima 27


Exhibits

- Tel: +51 1 440 1080

- Fax: +51 1 440 1080 Ext. 110

7. inPERU

InPERU was duly organized and established on January 11, 2012 as a non-profi t corporation to promote investment towards Peru in the principal international fi nancial markets, seeking an exchange of better practices and, in general, providing information on Peru as a destination of multiple investment opportunities. The incorporators of InPERU consist of the following private institutions: Lima Stock Exchange (BVL), Cavali, Private Pension Fund Management Association (AAFP), Banking Association of Peru (ASBANC), Procapitales, Peruvian Finance Association (APEF), National Confederation of Private Business Institutions (CONFIEP), and the Peruvian Association of Insurance Companies (APESEG).

It also has the support of the Peruvian State, through the Ministry of Economy and Finance, the Central Reserve Bank of Peru (BCRP), the Superintendency of Banking, Insurance and Pension Fund Management Companies (SBS), and the Stock Exchange Superintendency, ProInversión and PromPerú.

During 2012, InPERU plans to undertake three roadshows to London, Singapore and New York.

Ernst & Young services forbusiness and investment in Peru

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The global network of Ernst & Young professionals will help fi nd fi nancial, strategic and operational alternatives to improve your liquidity, fi nancial standing and performance. We help you in the development of sustainable business in the short and long-term.

Main Services

Audit

• Actuarial calculations

• Audit of financial statements

• Debt emissions and circular offerings under the 144 A – IPO rule

• IFRS implementations in the companies and country in which they operate

• Standards compliance assessments

Business Advisory

�• Advisory on internal and external regulation compliance

• Climate regulations and sustainability

• Conflict Resolution

• Corporate Governance

• Cost reduction

• Fraud prevention and investigation

• Implementing new businesses

• Improvement and redesign of processes and organization

• Internal audit

• Internal audit in information technology

• Internal control and segregation of functions

• Management of areas and projects in information technology

• Performance management

• Profit improvement

• Project management

• Revenue assurance

• Risk management

• Security management in information technology

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• Start-up operations

• Strategic planning

Taxes

• Customs and foreign trade

• Establishing a business

• Human capital

• Labor advisory

• Tax advisory

• Tax compliance, including expatriates

• Tax planning

• Transfer prices

Transactions Advisory Services - TAS

• Capital markets

• Due diligence of financial, commercial, tax/legal, process and systems

• Financial planning

• Mergers and acquisitions

• Transactions structure

• Valuations

Directory of Peruvianembassies and consulates

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Exhibits

Directory of Peruvian embassies and consulates

Algeria

• Algiers

Embassy2 Et 4 Capitaine Salah Moghni - El Biar 16406,Algiers, Algeria.T: +213 0 2192 3854 +213 0 7706 64645F: +213 0 2192 3856E: [email protected]

Argentina

• Buenos Aires

EmbassyAv. Del Libertador 1720, 1425 Buenos Aires,Argentina.T: +54 11 4802 2000

+54 11 4802 2438+54 11 4801 6429+54 11 4802 2551+54 11 4801 6351+54 11 4801 6551

F: +54 11 4802 5887E: [email protected]: www.embajadadelperu.int.ar

• Cordoba

ConsulateCalle José Roque Funes Nº2262, Bº VillaCentenario, Cordoba Capital CP. 5009,Argentina.T: +54 351 483 1753

+54 351 473 5229F: +54 351 481 9912E: [email protected]

• La Plata

ConsulateCalle 8 Nº. 862, 1er. Piso Entre 49 y 50La Plata C.P. 1900, Argentina.T: +54 221 425 1862F: +54 221 423 2812E: [email protected]

[email protected]: www.conperlaplata.org.ar

• Mendoza

ConsulateHuarpes 629, 5ta. Sección, CP (5500),Mendoza, Argentina.T: +54 261 429 9831

+54 261 429 4926F: +54 261 429 9831

+54 261 429 4926E: [email protected]

Ernst & Young94

Australia

• Canberra

Embassy40 Brisbane Avenue. Piso 2 Barton 2606 ACT,Canberra, Australia.T: +61 2 6273 7351

+61 2 6273 7352F: +61 2 6273 7354E: [email protected]: www.embaperu.org.au

• Sydney

ConsulateSuite 1001, 84 pitt Street Sydney - NSW 2000,Australia.T: +61 2 9235 0355

+61 2 9235 0366+61 2 9235 0300

F: +61 2 9235 0311E: [email protected]: www.magma.com.au/~conper

Austria Belgium

• Vienna

EmbassyMahlerstrasse 7/22,A -1010 Vienna, Austria.T: +43 1 713 7054

+43 1 713 4377+43 1 715 4993+43 1 715 7486

F: +43 1 712 7704E: [email protected]: www.embaperuaustria.at

• Brussels

EmbassyAvenue de Tervueren 179, 1150 Brussels,Belgium.T: +322 733 3319F: +322 733 4819 +322 734 8289E: [email protected]: www.consuladodelperu.be

Bolivia

• La Paz

EmbassyCalle Fernando Guachalla Nº 300, Sopocachi, La Paz, Bolivia.T: +591 2 244 1250

+591 2 244 4566+591 2 244 1773

F: +591 2 244 1240E: [email protected]

[email protected]

• Cochabamba

ConsulateAv. Oquendo. 0654, piso 6, ofi cina 606 / 7 Torres Sofer, Cochabamba, Bolivia.T: +5914 466 4154F: +5914 466 4153E: [email protected]

[email protected]: www.conpercbba.web.bo

• El Alto

ConsulateAv. Cívica Nº 33 casi esqui. Satélite-Villa Tejada Triangular, El Alto, Bolivia.T: +591 2 281 5754


• Santa Cruz

ConsulateCalle Viador Pinto Nº 84, esq. con calle Alejandro Ramírez, Equipetrol (a una cuadra del Hotel Casablanca), Santa Cruz, Bolivia.T: +591 3 341 9091


[email protected]


Exhibits

Brazil

• Brasilia

EmbassyS.E.S. Av. Das Nações Lote 43 Quadra 811 CEP: 70428-900 Brasilia DF, Brazil.T: +55 61 3242 9933

+55 61 3242 9435+55 61 3443 2953


[email protected]: www.embperu.org.br

• Manaos

ConsulateRua Constelação Nº 16-A. Modada do Sol, Barrio Aleixo, Manaus-AM, Brazil. CEP 69060-081.T: +55 92 3236 9607


• Rio de Janeiro

ConsulateAv. Rui Barbosa 314-2º. Andar Flamengo CEP 22250-020 Rio de Janeiro, Brazil.T: +55 21 2551 4496


• Rio Branco

ConsulateRua Maranhão 280, Bosque, centro Rio Branco-AC CEP 69908-240, Brazil.T: +55 68 3224 0303


• São Paulo

ConsulateAlameda Campinas 646 4to Piso Cerqueira César CEP 01404-001, São Paulo, Brazil.T: +55 11 3287 5555F: +55 11 3142 9595E: [email protected]

[email protected]: www.consuladoperusp.com.br

Canada

• Ottawa

Embassy130 Albert Street Suite 1901, Ottawa, Ontario, KIP5G4, Canada. T: +16 13 238 1777F: +16 13 232 3062E: [email protected]: www.embassyofperu.ca

• Montreal

Consulate 970-550 Sherbrooke Ouest, La Tour Ouest, Montreal, Quebec, H3A 1B9, Canada.T: +15 14 844 5123

+15 14 844 4998F: +15 14 843 8425E: [email protected]: www.consuladoperumontreal.com

Ernst & Young96

Canada

• Toronto

Consulate301-10 Saint Mary Street, Toronto, Ontario, M4Y1P9, Canada.T: +4 16 963 9696F: +4 16 963 9074E: [email protected]: www.conperutoronto.com

• Vancouver

Consulate260-505 Burrard Street Vancouver B.C. V7X 1M3, Canada.T: +16 04 662 8880

+16 04 662 3564F: +16 04 662 3564E: [email protected]: www.consuladoperu.ca

Chile

• Santiago

EmbassyAv. Andrés Bello 1751, Providencia, Santiago, Chile. Casilla Postal: 16277.T: +56 2 339 2601F: +56 2 235 2053E: [email protected]

[email protected]

• Arica

ConsulateAv. 18 de Setiembre N° 1554, Arica, Chile.T: +56 58 231 020


• Iquique

ConsulateSegundo Piso, Casa Billinghurst, Zegers Nº 570, Iquique. Casilla Postal 248, Chile.T: +56 57 411 466


• Valparaiso

ConsulateCalle Errázuriz Nº 1178, Of. 71, Edifi cio “Olivari”–Valparaiso, Chile.T: +56 32 225 3403

+56 32 221 5621F: +56 32 221 7289E: [email protected]: www.conpervalparaiso.cl

China

• Beijing

EmbassySanlitun Bangong Lou 1- 9, Beijing 100600, China.T: +86 10 6532 3719

+86 10 6532 2494+86 10 6532 0774


[email protected]: www.embperu.net.cn

• Hong Kong - Special Administration of the Republic of China.

ConsulateUnit 1401,14th Floor, China Merchants Tower 168-200 Connaught Road Central Hong Kong.T: +852 2868 2622F: +852 2840 0733E: [email protected]


Exhibits

China

• Shanghai

ConsulateShanghai Kerry Centre, 1515 Nanjing XI road, Floor 27, Suite 270, Shanghai, 200040, China.T: +86 21 5298 5900F: +86 21 5298 5905E: [email protected]

Colombia

• Bogota

Embassy Calle 80 A, N° 6-50, Bogota D.C., Colombia.T: +57 1 257 0505

+57 1 249 8362+57 1 249 8371+57 1 249 8569+57 1 257 0514

F: +57 1 249 8581E: [email protected]: www.embajadadelperu.org.co

• Leticia

ConsulateCalle 11, 5-32, Leticia, Amazonas, Colombia.T: +57 8 592 3947


[email protected]

Costa Rica Cuba

• San Jose

EmbassyDel Colegio de Ingenieros y Arquitectos 325 Mts, Norte, Casa Crema Urbanización Freses Curridabat, San Jose, Costa Rica A.P. 4248-1000.T: +506 2225 9145

+506 2225 1575F: +506 2253 0457E: [email protected]

• Havana

EmbassyCalle 30 Pt.107 entre 1ra y 3ra, Miramar, Playa La Habana, Cuba.T: +53 7 204 2632F: +53 7 204 2636E: [email protected]

Czech Republic Dominican Republic

• Prague

EmbassyMuchova 9, Prague 6, 160 00, Dejvice, Czech Republic.T: +420 2 2431 6210F: +420 2 2431 4749E: [email protected]

• Santo Domingo

EmbassyCalle Mayreni N° 31 Urbanización los Cacicazgos Santo Domingo, Dominican Republic.T: +1809 482 8374

+1809 482 3300+1809 482 3344

F: +1809 482 3334E: [email protected]

Ernst & Young98

Ecuador

• Quito

EmbassyAv. República de El Salvador 495 Irlanda,Quito, Ecuador.T: +593 22 468 410

+593 22 468 411+593 22 468 404+593 22 468 389

F: +593 22 252 560E: [email protected]: www.embajadadelperú.org.ec

www.embaperu-ecuador.com

• Guayaquil

ConsulateAv. Francisco de Orellana Kennedy Norte, Piso 14 Ofi cina Nº 02 Edifi cio “Centrum” Guayaquil,Ecuador.T: +593 42 280 114

+593 42 280 135+593 42 280 142

F: +593 42 280 183E: [email protected]: www.consuladoperuguayaquil.org.ec

• Loja

ConsulateAv. Zoilo Rodríguez 03-05 Ciudadela Zamora, Loja, Ecuador.T: +593 72 579 068F: +593 72 571 668E: [email protected]

[email protected]

• Macara

ConsulateAv. Simón Bolivar 48-33 y 10 de Agosto, Barrio Juan Montalvo, Macara, Ecuador.T: +593 72 694 030


[email protected]

• Machala

ConsulateUrbanización Unioro Manzana 14 Villa 11, Machala, Provincia del Oro, Ecuador.T: +593 72 985 378

+593 72 985 379+593 72 985 983


[email protected]

Egypt El Salvador

• Cairo

Embassy41-AI-Nahda Street, 2nd fl oor, Maadi, Cairo, Egypt.T: +202 2359 0306


• San Salvador

EmbassyAv. Masferrer Norte, Casa N° 17 P, Cumbres de la Escalón, Colonia Escalón, San Salvador, El Salvador.T: +503 2275 5566

+503 2275 5567+503 2275 5568



Exhibits

Finland France

• Helsinki

EmbassyLudviginkatu 3-5 A 21, 00130 Helsinki, Finland.T: +358 9 759 9400F: +358 9 759 94040E: [email protected] W: www.peruembassy.fi

• Paris

Embassy50 Avenue Kléber 75116 Paris, France.T: +33 1 5370 4200F: +33 1 4704 3255E: [email protected]: www.amb-perou.fr

Germany

• Berlin

EmbassyMohrenstrasse 42, 10117 Berlin, Germany.T: +49 30 2064 1043


[email protected]@embaperu.de

W: www.embaperu.dewww.botschaft-peru.de

• Frankfurt

ConsulateKaiserstrasse 74, 63065, Offenbach Am Main, Frankfurt, Germany.T: +49 69 133 0926F: +49 69 295 740E: [email protected]

[email protected]:www.conperfrankfurt.de

• Hamburg

ConsulateBlumenstrasse 28, 22301 Hamburg, Germany.T: +49 40 47 6745F: +49 40 481 854E: [email protected]

[email protected]: www.conperham.de

• Münich

ConsulateHerzog Heinrichstrasse 23, 80336 Mϋnich, Germany.T: +49 89 1392 8880F: +49 89 1392 88819E: [email protected]: www.conperumunich.de

Greece Guatemala

• Athens

EmbassyCalle Koumbari 2, Tercer piso, Kolonaki CP 106- 74, Athens, Greece.T: +30 210 779 2761F: +30 210 779 2905E: [email protected]

• Guatemala

Embassy 15 Avenida “A” 20-16, Zona 13, Guatemala,Guatemala.T: +502 2361 8532


Ernst & Young100

Honduras India

• Tegucigalpa

EmbassyEscuela Dowal Casa Nro. 3301 Calle Principal Colonia Linda Vista Tegucigalpa.M.D.C.Honduras, CA. Casilla Postal 3171.T: +504 236 7994

+504 236 8345F: +504 2 214 598E: [email protected]

[email protected]

• New Delhi

EmbassyA- 9/5, Bucarest Marg Vasant Vihar, New Delhi 110057, India.T: +91 11 4616 3333F: +91 11 4616 3301E: [email protected]: www.embassyperuindia.in

Indonesia Israel

• Jakarta

EmbassyMenara Rajawali, 12TH Floor, JL. Mega Kuningan, Lot. 5,1, Kawasan Mega Kuningan Jakarta 12950, Indonesia.T: +62 21 576 1820


[email protected]

• Tel Aviv

Embassy60 Medinat Ha-Yehudim St. Entrada “A”,segundo piso, Herzliya Pituach, Israel.T: +972 9 957 8835F: +972 9 956 8495E: [email protected]

[email protected]

Italy

• Rome

EmbassyVía Francesco Siacci, 2B-00197 Rome, Italy.T: +3906 8069 1510F: +3906 8069 1777E: [email protected]: www.ambasciataperu.it

• Genoa

ConsulatePiazza Della Vittoria, 15 AMM-E 16121 Genova, Italy.T: +39 010 589 952


[email protected]: www.consuladoperugenova.com

• Milan

ConsulateVía Roberto Bracco No. 1 20159, Milan, Italy.T: +39 02 690 04577

+39 02 668 09617F: +39 02 668 5575E: [email protected]: www.conpermilan.com

• Florence

Consulate Piazza San Firenze 3, 50122, Florence, Italy.T: +39 055 260 8803F: +39 055 260 8803E: conper.fl [email protected]: www.consuladoperufl orencia.com


Exhibits

Italy

• Turin

ConsulateVía Pastrengo 29, C.P. 10128 Turin, Italy.T: +39 11 581 9762F: +39 11 509 8805E: [email protected]: www.conperturin.com

Japan

• Tokyo

Embassy4–4-27 Higashi Shibuya Ka Tokyo 150-0011,Japan.T: +81 3 3406 4243F: +81 3 3409 7589E: [email protected]: www.embajadadelperuenjapon.org

• Nagoya

ConsulateSwan Nagoya Fushimi Bldg, 3F, 2-2-23 Sakae, Naka ku, Nagoya shi, Aichi 460-0008, Japan.T: +81 0 52 209 7851

+81 0 52 209 7852F: +81 0 52 209 7856E: [email protected]: www.consuladodelperuennagoya.com

Korea Kuwait

• Seoul

Embassy of Peru in South KoreaDae Yun Gak Tower Center Building, Unit 2002, 25-5, Chung muro 1-KA Jung-Ku, Seoul, Korea.T: +82 2 757 1735

+82 2 757 1736+82 2 757 1737

F: +82 2 757 1738E: [email protected]: www.embaperucorea.com

• Kuwait City

EmbassyAhmed Al Jaber Street, 6to. Piso, “Al Arabiya Tower Building”, Distrito de Sharq, Kuwait City, Kuwait.T: +96 5 226 7250

+96 5 226 7252F: +96 5 226 7251

Ernst & Young102

Malaysia Morocco

• Kuala Lumpur

EmbassyWisma Selangor Dredging 6th. Floor, South Block 142-A, Jalan Ampang 50450 Kuala Lumpur, Post Box 18, Malaysia.T: +60 3 2163 3034


[email protected]: www.embperu.com.my

• Rabat

Embassy16, Rue D'lfrane, Plaza Peru, Rabat, MoroccoT: +212 0 537 723 236

+212 0 537 723 284E: [email protected]

[email protected]

Consular Section16, Rue D'lfrane Plaza Peru, Rabat, Morocco.T: +212 37 723 236

+212 37 723 284F: +212 37 702 803

Mexico Nicaragua

• Mexico D.F.

EmbassyPaseo de la Reforma 2601. Colonia Lomas Reforma Delegación Miguel Hidalgo, C.P. 11020, Mexico, D.F.T: +52 55 1105 2270F: +52 55 1105 2279E: [email protected]

• Managua

EmbassyHospital Militar 1 cuadra al lago, 2 c. abajo, Casa No. 325, Managua, Nicaragua.T: +505 2 266 6757


[email protected]: www.peruennicaragua.com.ni

The Netherlands Panama

• The Hague

EmbassyNassauplain 4, 2585 EA, La Haya, Netherlands.T: +31 70 365 3500

+31 70 427 1693F: +31 70 365 1929E: [email protected]: www.embassyofperu.nl

• Panama

EmbassyCalle 53 Marbella Condominio World Trade Center, Ofi cina 1203, Panamá A.P. W.T.C. 8322474.T: +507 269 6864

+507 223 1112+507 263 1556



Exhibits

Paraguay Poland

• Asuncion

EmbassyAca Carayá Nº 215, esquina Corrales, Barrio Bernardino Caballero, Asuncion; Casilla de Correos 433, Paraguay.T: +595 21 607 431

+595 21 210 395F: +595 21 607 327E: [email protected]: www.embperu.org.py

• Warsaw

EmbassyUL. Staroscinska 1A, M.3, Warsaw, Poland.T: +48 22 646 8806

+48 22 646 8807F: +48 22 646 8617E: [email protected]: www.perupol.pl

Portugal Qatar

• Lisboa

EmbassyRua Castillo 50,4º Dto. 1250-071 Lisboa, Portugal.T: +351 213 827 470


• Doha

EmbassyAbdul Aziz Bin JassimStreet, Lejbnailat Zone 64, Doha, Qatar.T: +97 444 915 944F: +97 444 915 940E: [email protected]

Romania Russian Federation

• Bucarest

Consular Section / EmbassyBvd. Lacul Tei Nº 29, Etaj.2, Ap. 4, Sector2, Bucarest, Romania.T: +40 21 211 1819F: +40 21 211 1818E: [email protected]: www.embajadaperu.ro

• Moscow

EmbassyCalle Sadovaya Triunfalnaya 4 -10 Piso 5, Moscow, Russian Federation. T: +7495 650 0429F: +7495 650 0524E: [email protected]

Singapore South Africa

• Singapore

Embassy390, Orchard Road No. 12-03, Palais Renaissance, Singapore 238871.T: +65 6738 8595F: +65 6738 8601E: [email protected]

• Pretoria

Embassy200 Saint Patricks Street, Muckleneuk Hill,Pretoria 0083, South Africa.T: +27 1244 01030


Ernst & Young104

Spain

• Madrid

EmbassyC/Príncipe de Vergara N°36 5° Derecha 28001 Madrid, Spain.T: +34 91 431 4242F: +34 91 577 6861E: [email protected]:www.embajadaperu.es

• Barcelona

ConsulateAvenida de Roma 157, 1° 08011, Barcelona, Spain.T: +34 93 415 4999

+34 93 451 1784F: +34 93 237 4634E: [email protected]: www.consulperubarcelona.com

• Sevilla

ConsulatePabellón de Perú, Avenida María Luisa S/N,Sevilla, 41013, Spain.T: +34 95 423 2819F: +34 95 423 7925E: [email protected]: www.consuladoperuseville.es

• Valencia

ConsulatePlaza Los Pinazos 2, piso 3, 46004, Valencia, Spain.T: +34 96 351 5927

+34 96 352 4463F: +34 96 352 3289E: [email protected]: www.consuladoperuvalencia.org

Switzerland

• Bern

EmbassyThunstrasse No. 36, 3005 Bern, Switzerland.T: +41 31 351 8555F: +41 31 351 8570E: [email protected]: www.embajadaperu.ch

• Geneva

Consulate17 Rue Des Pierres Du Niton, 1207 Geneva,Switzerland.T: +41 22 707 4917F: +41 22 707 4918E: [email protected]

[email protected]

• Zϋrich

ConsulateLöwenstrasse 69, 8021, Zürich, Switzerland.T: +41 44 211 8211

+41 44 211 8212+41 44 211 8207



Exhibits

Taiwan Thailand

• Taipei

Commercial Offi ce of Peru in TaipeiSuite 2411, International Trade Building, 333 Keelung Rd., Sec. 1, Taipei 110, Taiwan.T: +8862 2757 7017F: +8862 2757 6480E: [email protected]

[email protected]: www.peru.org.tw

• Bangkok

EmbassyGlas Haus Building, 16 th. Floor, 1 Sukhumvit 25 Road, Klongtoey, Bangkok 10110, Thailand.T: +66 2 260 6243

+66 2 260 6245+66 2 260 6248

F: +66 2 260 6244E: [email protected]: www.peruthai.th.com

United Arab Emirates United Kingdom

• Dubai

Consulate25th Floor, Al Habtoor Business Tower, Dubai Marina, Dubai.T: +00971 4 422 7550E: [email protected]: www.peru.ae

• London

Embassy52 Sloane Street London – SW 1X 9SP, UK.T: + 44 207 235 1917

+ 44 207 235 8340+ 44 207 235 3802

F: + 44 207 235 4463E: [email protected]: www.peruembassy-UK.com

Uruguay

• Montevideo

EmbassyObligado 1384 Montevideo, Uruguay.T: +598 2 707 1420

+598 2 707 6862+598 2 707 2834+598 2 707 8214

F: +598 2 707 7793E: [email protected]: www.angelfi re.com/country/embaperu

U.S.A.

• Washington

Embassy1700 Massachussetts Ave. N.W. WashingtonD.C. 20036-1903, U.S.A.T: +1 202 833 9860 al

+1 202 833 9869W: www.peruvianembassy.us

• Atlanta

Consulate4360 Chamblee Dunwoody RD. Suite 580, Atlanta, GA 30341, U.S.A.T: +1 678 336 7010F: +1 678 990 1920E: [email protected]: www.consulperuatlanta.com

Ernst & Young106

U.S.A.

• Boston

Consulate20 Park Plaza, Suite 511, Boston, Massachussets, U.S.A.T: +1 617 338 2227F: +1 617 338 2742E: [email protected]

• Chicago

Consulate180 North Michigan Avenue Suite 1830 Chicago Illinois 60601, U.S.A.T: +1 312 782 1599

+1 312 853 6173+1 312 853 6174


• Dallas

Consulate9330 Amberton Parkway, Suite 2130, Dallas, TX 75243, U.S.A.T: +1 972 234 0005

+1 972 234 0022+1 972 234 0027+1 972 234 0028+1 972 809 0101


• Denver

Consulate1001 S Monaco Parkway, suite 210 Denver, Co 80224, U.S.A.T: +1 303 355 8555F: +1 303 355 8003E: [email protected]: www.consuladoperu.com

• Hartford

Consulate250 D Main Street Hartford, Ct. 06106, U.S.A.T: +1 860 548 0266

+1 860 548 0337+1 860 548 0305


• Houston

Consulate5177 Richmond Avenue. Suite 695 Houston. Texas 77056, U.S.A.T: +1 713 355 9517


• Los Angeles

Consulate3450 Wilshire Boulevard, Suite 800 / Los Angeles, California 90010, U.S.A.T: +1 213 252 5910

+1 213 252 9795+1 213 252 8599+1 213 252 8498


• Miami

Consulate444 Brickell Avenue Suite M-135 Miami, Florida 33131, U.S.A.T: +1 786 347 2420F: +305 373 5388E: [email protected]: www.consulado-peru.com


Exhibits

U.S.A.

• New York

Consulate241 East 49th Street New York, N.Y. 10017, U.S.A.T: +1 646 735 3828


• Paterson

Consulate100 Hamilton Plaza 12th fl oor, Paterson New Jersey, 07505, U.S.A.T: +1 973 278 3324F: +1 973 278 0254E: [email protected]

• San Francisco

Consulate870 Market St. Suite 1067 San Francisco Ca. 94102.T: +1 415 362 5185

+1 415 362 7136+1 415 332 5647


Turkey Vatican City

• Ankara

EmbassyResit Galip Cadessi, 70, 06700 Gaziosmanpasa, Ankara, Turkey.T: +90 312 446 9039

+90 312 448 1436+90 312 447 4026

F: +90 312 447 4026 E: [email protected]

• Rome

EmbassyVía Di Porta Angélica N° 63 Scala A, 3° Piano, 00193 Rome, Vatican City.T: +3906 6830 8535E: [email protected]

Venezuela

• Caracas

EmbassyAv. San Juan Bosco con 2da Transversal. Edifi cio San Juan, Piso 5, Altamira, Caracas, Venezuela.T: +58 212 264 1420


• Puerto Ordaz

ConsulateUrbanización Roraima, Calle Roraima con esquina de calle Aguila, Mz 4; casa N° 20 Alta Vista Sur Puerto Ordaz, Estado Bolivar, Venezuela.T: +58 286 961 4945

+58 286 961 6225F: +58 286 962 3865E: [email protected]: www.consuladogeneraldelperuenpuertoordaz.com


Exhibits


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Exhibits


Peruvian - American Chamber of Commerce - Amcham

Av. Víctor Andrés Belaunde 177, San Isidro, Lima 27Tel: +51 1 705 8000Fax: +51 1 705 8026E-mail: [email protected]: www.amcham.org.pe

Aldo Defi lippiExecutive Director

Peruvian - Brazilian Binational Chamber of Integration and Commerce - Capebras

Calle El Rosario 359 “A”, Mirafl ores, Lima 18Tel: +51 1 447 3797Web: www.capebras.org

Miguel Vega AlvearPresident

Peruvian - Spanish Chamber of Commerce

Calle Los Naranjos 323, San Isidro, Lima 27Tel: +51 1 212 5333E-mail: [email protected]: www.cocep.org.pe

Ignacio BaenaPresident

Peruvian - Chilean Chamber of Commerce

Calle Monterrey 281, Of. 214, Urb. Chacarilla, Santiago de Surco, Lima 33Tel: +51 1 372 2553 / +51 1 372 4858Web: www.camaraperuchile.org

Juan Carlos FisherPresident

Peruvian - Canadian Chamber of Commerce

Calle Santander 186, Of. 201, Mirafl ores, Lima 18Tel: +51 1 440 6699E-mail: [email protected]: www.canadaperu.org.pe

Luis Carlos RodrigoPresident

Ernst & Young112

Peruvian - Ecuatorian Chamber of Integration and Commerce - Capecua

Av. Paseo de la República 3195, Of. 603, San Isidro, Lima 27Tel: +51 1 222 1772 / +51 1 222 1773Fax: +51 1 447 1785E-mail: [email protected]: www.capecua.org

Miguel Arbulú AlvaPresident

Peruvian - Italian Chamber of Commerce

Av. 28 de Julio 1365, Mirafl ores, Lima 18Tel: +51 1 445 4278 / +51 1 447 1785Fax: +51 1 447 1785E-mail: [email protected]: www.cameritpe.com

Barbara BocciPresident

Peruvian - Argentinian Chamber of Commerce

Av. Camino Real 470, Of. 301B, San Isidro, Lima 27Tel: +51 1 441 4001Fax: +51 1 440 1093E-mail: [email protected]: camaraperuano-argentina.org

Vilma Schenone DulantoPresident

Peruvian - British Chamber of Commerce

Av. José Larco 1301, Piso 22, Torre Parque Mar, Mirafl ores, Lima 18Tel: +51 1 617 3090Fax: +51 1 617 3095E-mail: [email protected]: www.bpcc.org.pe

Enrique AndersonPresident

Peruvian - Dutch Chamber of Commerce

Av. Benavides 245, Of. 305, Mirafl ores Lima 18Tel: +51 1 444 4791Fax: +51 1 444 4798E-mail: [email protected]

Willem ScholExecutive President


Exhibits

Peruvian - Israeli Chamber of Commerce

Calle Carlos Porras Osores 210, San Isidro, Lima 27Tel: +51 1 222 0984Fax: +51 1 222 0984E-mail: [email protected]

Daniel FlexerPresident

Peruvian - Mexican Chamber of Commerce A.C.

Montebello 170, Urb. Chacarilla, Santiago de Surco, Lima 33Tel: +51 1 627 5568 / +51 1 512 0440 Ext. 3247Fax: +51 1 628 8650E-mail: [email protected]

Gerardo Solís MacedoPresident

Swiss Chamber of Commerce in Peru

Av. Salaverry 3240, Piso 4, San Isidro, Lima 27Tel: +51 1 264 3516Fax: +51 1 264 3526E-mail: info@swisschamperuWeb: www.swisschamperu.org

Antonio GnaegiPresident

Peruvian - Bolivian Chamber of Economic Integration and Export Promotion – Capebol

Av. Paseo de la República 3195, Of. 603, San Isidro, Lima 27E-mail: [email protected]: www.capebol.org

Carlos LazartePresident

Peruvian - Venezuelan Chamber of Economic Integration and Export Promotion - Capeven

Av. Paseo de la República 3195, Of. 603, San Isidro, Lima 27Tel: +51 1 222 1772 / +51 1 222 1773Fax: +51 1 440 0987E-mail: [email protected]

Oscar VargasPresident

Ernst & Young114

Peruvian - Chinese Chamber of Commerce

Av. Del Parque Sur 356, San Isidro, Lima 27Tel: +51 1 225 6018Fax: +51 1 226 5704E-mail: [email protected]: www.capechi.org.pe

Eduardo McBridePresident

Colombian Commercial Advisory

Av. Jorge Basadre 1580, San Isidro, Lima 27Tel: +51 1 222 1360Fax: +51 1 222 2074E-mail: [email protected]: www.proexport.com

Ismael RamírezCommercial Attaché

Peruvian - Japanese Chamber of Industry and Commerce

Av. Gregorio Escobedo 803, Piso 7, Jesús María Lima 27Tel: +51 1 261 0484Fax: +51 1 261 3992Web: www.ccipj.org.pe

Yoshinori TakasePresident


Exhibits

Acknowledgements

The following contributed to this publication:

Carlos Aspiros CandelaCarlos Cárdenas RoblesClaudia Cermeño DurandDanitza Kukurelo ValdiviaDavid Warthon OntamedaEstefanía Ochoa Del CastilloFernando Tori VargasJessica Espinola ArteagaJorge Luis Bardales CastroJorge Medina MéndezJuliane MontagManuel Rivera SilvaMarco Antonio Zaldívar GarcíaPaulo Pantigoso Velloso da SilveiraPercy Bardales CastroRenzo Valera EstradaVíctor Suárez AlpacaWilly Wong Chiang

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Notes

Notes

This publication contains summarized information and is therefore intended for general guidance only. It is not intended, by any means, to be a substitute for detailed research or the exercise of professional criteria and judgment. Also, the constant changes in the markets and their resulting information may create the need to update the information included in this document. Ernst & Young does not accept responsibility for the economic results that any person, company or business might attempt to attribute to any material in this publication. For any specific business or investment matter, reference should be sought from an appropriate advisor.

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