UIT - Peruvian tax unit
|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 2020, 1 UIT is equivalent to S/ 4,300.
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 you are caught in 2020, you might end up paying S/ 4,300, while the same traffic violation would have cost you S/ 4,200 the year before or only S/ 4,150 in 2018.
Or the fine for overstaying a tourist visa is not a fixed Soles amount but equals 0.1% of an UIT. So, in 2020 you have to pay a fine of S/ 4.30 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/ 21,500 (5 UITs) of your income and then on the income above that up to S/ 86,000 (20 UITs) 14% and so on.