How are different expense categories treated in Peru for reimbursement?

Expenses Invoicing Requirements

The expense must be duly supported with documents satisfying reimbursement requirements provided in the Peru’s tax provisions.

Passports/Work Permits/Visa

Employees are responsible for ensuring that they have a valid and current passport/work permit/visa.

Transportation Expenses

No issues, can be claimed as non-taxable as long as receipt is supplied

Per diems

Travel expenses on account of domestic travel per diem shall be supported

only with payment vouchers, which collectively may not exceed twice the

amount provided by the Central Government of Peru to senior career civil

servants on this account. Please see Peru Expense Policy

Air Travel/Bus and Train

No issues, can be claimed as non-taxable as long as receipt is supplied

Taxi, Cabify, Uber, and related apps

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Rental

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Parking Fees

No issues, can be claimed as non-taxable as long as receipt is supplied

Tolls

No issues, can be claimed as non-taxable as long as receipt is supplied

Other Business Travel-Related Expenditure

Event expenses (trade shows/conferences) - No issues, can be claimed as non-taxable as long as receipt is supplied

Travel Insurance

The company will reimburse employees travel insurance expense exclusively for the period of the business trip and it should be pre-authorized.

Mileage and Fuel

For the mileage expense reimbursement, local staff should include the description of business travel such as travel purpose, client name, route, miles, etc. in the report for review and approval. In such cases, travel point of origin, travel destination point and travel purpose must be justified. The worker will be assigned a monetary amount for the use of miles of the vehicle owned by the worker. Velocity Global reserves the right to revise the mileage reimbursement rates from time to time in accordance to revisions made by the SUNAT

Accommodation

No issues, can be claimed as non-taxable as long as receipt is supplied

Meals (travel/events/during work)

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Client Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Staff Entertainment

No issues, can be claimed as non-taxable as long as receipt is supplied / Tips No receipt = non-compliant, payment through payroll with a gross-up

Mobile Phone bills

Employees are entitled to expense business usage on their personal mobile phones. Employees may only claim for the amount of money they are out of pocket as a result of making business calls from their personal mobile phone. Employees are required to submit an itemised bill clearly apportioning between business calls and personal calls.

Broadband (Internet)

Upon supervisory approval, Velocity Global can reimburse these expenses where Broadband internet is utilized for Business Purposes.

Computer Equipment, Software, Office Space, Furniture, Phones, Other Assets

Internal fixed assets policy.

Furniture

Internal fixed assets policy.

Stationery

No issues, can be claimed as non-taxable as long as receipt is supplied

Gifts

No issues, can be claimed as non-taxable as long as receipt is supplied

Coworking and Office Rentals

No issues, can be claimed as non-taxable as long as receipt is supplied

Bank Charges

Bank or credit card charges incurred because of the employee's delays claiming expenses will not be reimbursed.

Foreign Currencies

Each employee is responsible for obtaining the necessary foreign currency on international travel, commission expenses for currencies purchased on foreign travel will be reimbursed with the respective supporting documentation.

Annual subscriptions

No issues, can be claimed as non-taxable as long as receipt is supplied

Training Expenses

Upon approval of the supervisor, a membership will be reimbursed per employee, per association, when it is specifically related to the functions of their job, with respective supporting documentation.

Medical Claims/Health Check Up and related items/Medical Insurance

N/A

Exception and Other tpyes of expenses

N/A

Event expenses (trade shows/conferences)

No issues as long as event directly related to business. Please provide relevant receipts

Meals (travel/events/during work)

Meals on business trips are not taxable.

Di minimus expenses (Tips, no receipt)

N/A

Payroll Reporting

N/A

Additional Reporting

N/A

Review process

N/A