OECD Tax Policy Reviews: Peru 2026

This report examines the key challenges facing Peru’s tax system and presents options for reform. It highlights the need to gradually raise Peru’s low tax-to-GDP ratio, which has not increased sustainably despite years of economic growth even as expenditure requirements and fiscal pressures continue to grow. The report outlines how to strengthen public revenues by addressing persistently high levels of informality and non-compliance, while broadening the tax base, including through the rationalisation of tax expenditures. It also identifies opportunities to improve tax design and proposes targeted increases in selected taxes.