UIT - Peruvian tax unit

Term Main definition
UIT - Peruvian tax unit

The UIT – Unidad Impositiva Tributaria – is a reference unit set annually by the Peruvian Ministry of Economy (MEF) to determine taxes, penalties, fines, processing fees, deductions, and others. In 2021, 1 UIT is equivalent to S/ 4,400.

UIT Peru 2008 - 2020

Development of the UIT in Peru since 2008

For example, the fine for traffic violations isn’t an amount in Soles, but a percentage of an UIT. The fine for drunk driving is 1 UIT (or 100% of an UIT). So, if they catch you in 2021, you might end up paying S/ 4,400, while the same traffic violation would have cost you S/ 4,300 the year before (2020) or only S/ 4,200 in 2019.

Or the fine for overstaying a tourist visa is not a fixed Soles amount but equals 0.1% of an UIT. So, in 2021 you have to pay a fine of S/ 4.40 for each day you overstayed.

Or Peruvian income tax, which is imposed on a scale of brackets of the income. For the first 5 UITs of your income per year you pay 8% income tax, for the amount above that up to 20 UITs 14%, for the amount above that up to 35 UITs 17%, for the amount above that up to 45 UITs 20% and for the amount above 45 UITs 30%. So, in 2020 you pay 8% tax on the first S/ 22,000 (5 UITs) of your income and then on the income above that up to S/ 88,000 (20 UITs) 14% and so on.

Synonyms: UIT

Did we miss something?

Is there any term, abbreviation, location or something else we missed? Do you need something explained in an understandable way? Please let us know and get in touch with us through the contact form that can be found here.