1. Tax compliance cost survey - Peru
Oscar Calvo-Gonzalez
LAC PREM
ocalvogonzalez@worldbank.org
February 1, 2012

2. Key result #1: Compliance costs, percent of sales
Taxpayers with 3rd category income, general regime
EU-15 (2004)
<250 trab. >250 trab.
1.3 % 0.01 %
South Africa

3. Key result #2: collection vs. compliance costs
Nuevos soles
7000
6000
5000
4000
3000
2000
1000
0
Collection per taxpayer (3rd Median compliance cost per
category income in general taxpayer (3rd category
regime) income, general regime)

4. Agenda
• Approach followed
• Selected survey results
• Reflections on issues for Bank engagement

5. Approach
• Input from tax authority (SUNAT) and Ministry of Finance: goal
to focus on entire taxpayers’ cycle
• Partnership with Association of CPAs (Colegios de Contadores
Públicos)
• Based on WBG experience in other countries:
– On line; Focus client; Modular approach
• 2-month pilot, 2-month field
5

6. Sample
Percent
Number
(of total)
CPAs reached (by email) 23,990 -
CPAs that click on link to survey 3,488 15
CPAs with at least one client with 3rd
2,547 11
category income
CPAs that answer all survey questions 2,075 9
55 min (mean)
Time responding questionnaire
31 min (median)

7. 7

8. RUS Solicitudes de
Módulo Renta devolución Módulo
inicial: Planilla Auditorías o apreciación
inspecciones servicios de
RER la SUNAT:
Perfil del Libros Aplazamientos
contador Renta Fraccionamiento Estar al
Clientela IGV Sanciones tanto de
Cliente Mecanismos de retención cambios
Reclamos
TIPO Planilla
RG Percepción
RUC Libros sobre la
Renta (incl. cecl. anual) calidad de
IGV servicios de
Mecanismos de retención atención al
Planilla cliente
ITAN
DAOT
PDTs

9. Agenda
• Approach followed
• Selected survey results
• Reflections on issues for Bank engagement

10. Tax services to business taxpayers, i.e.,
taxpayers with third-category incomes?
I work for
I have an an
employer accounting
and also I business
No ,
do some 7%
714
accounting
work
outside I have my
47% own tax
accounting
practice
serving
I have an
clients
employer 34%
Yes , and I do
2547 not do any I do not do
accounting tax work
work for
outside anybody.
n=3261 10% n=2509 2%

11. Years of professional experience in tax matters
Less than
2 years
More than
3%
20 years
14%
11 - 20
years 2 - 5 years
37% 19%
6 - 10
years
27%
n=2050

12. Number of clients (with 3rd category incomes)
by CPA
n=2050

13. Percent of clients in sample by tax regime
n=2048

14. The majority of clients pay a fixed monthly fee
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
RUS (n=164)
RER (n=364)
RG (n=1235)
Total (n=1763)
Fixed monthly payment Pay per service
• 180 CPAs reported the exact amount; 895 reported a range

15. RG: Time it takes monthly to prepare and fill in necessary
information to complete tax returns for monthly fee clients

16. Withholding mechanisms are particularly costly
Hours per month, Special General
service-based fee clients regime (RER) regime
Bookkeeping 3.4 8.8
Monthly return 1.4 5.1
Withholding mechanisms
1.7 7.0
(detracciones, percepciones, retenciones)
Annual tax return (hours per year) n.a. 34.2

17. Time and money spent by respondents per year to stay abreast
of changes in laws and regulations (time spent attending tax
seminars, money paid as entry fees to such events)
n=2292 Time n=2260 Money

18. Usefulness of sources of information regarding tax laws and
regulations (% of respondents stated that a source is most useful)
n= 2349

19. PDT (Programas de Declaración Telemática – online filing
programs) – percentage of respondent who said that they
have problems with various aspects of the PDT
n= from 1739 to 1910

20. Perception of changes in tax laws (% of respondents reporting)
n=2121 to 2159

21. Agenda
• Approach followed
• Selected survey results
• Reflections on issues for Bank engagement

22. Reflections on Bank engagement
• “Natural” role for the Bank (tax authority may not have the trust
of CPAs to undertake the survey)
• Cost-effective, though requires great attention to follow up;
do not underestimate the demand that it may elicit!
– In Peru, authorities want overall estimate of compliance costs to monitor
• Resist the temptation by authorities to do a very long survey
• “Raw-ish” data left with authorities? Analysis?
– Bank is not the natural candidate to exploit all the wealth of information
– Need to consider the governance of repeating it…
22

23. Great opportunity to engage
CPAs on an ongoing basis?
“¿Would you be
interested in being
part of a group of
experts who would
respond a similar
survey once a year?”

24. Thank you

25. POST-FILING PRE-FILING
9. Refunds
1. Taxpayer gathers
information
8. Complaints
• Before SUNAT (reclamos)
• Before court (apelaciones) 2. Registration for
RUC number
7. Collection (cobranza coactiva)
• Payment order (ordenes de pago)
3. Authorizing
• Resoluciones de determinaciones
receipts book
• Fines (resolucion de multa)
(comprobantes de
pago, either
factura or boleta)
6. Auditing and control
• Audit
• Control in roads (control movil) 4. Authorizing
• Inspectors visits to check use of accounting books
receipts (fedatarios)
5. Filing and payment
FILING

26. What percentage of communications with SUNAT were answered
successfully (% of respondents answered the question)?

27. Principal reasons to advise a RG client not to file under the RER
and to file under RG? (%, multiple selection was allowed)
N=1302 Not to file under RER n=1289 File under RG

28. Peru - Tax Compliance Cost Survey
Emails received in encuestatributos@worldbank.org by topic No. of respondents Percent of total
1 Accepting invitation to participate in the survey or communicating that they 118 36
already completed it
2 Requests for more information about the survey (how to answer, deadline, etc) 58 18
3 Responses unrelated to the survey (queries about job opportunities, invitations 34 10
to join facebook, etc)
4 Requests to verify authenticity of the survey 33 10
5 Asking to be deleted from distribution list or communicating their decision not to 29 9
answer the survey for whatever reason
6 Reporting technical difficulties logging in 20 6
7 Communicating that they completed the survey under a different email address 12 4
8 Complaints about the timing of survey (busiest time for accountants) 9 3
9 Asking whether we received their completed questionnaires 7 2
10 Complaints about the design of the survey instrument (including complaints 4 1
about the raffle)
11 Outright denunciations of the survey as a scam 4 1
12 Queries about the outcome of the raffle 3 1
TOTAL 331
28

29. Taxpayers’ cycle in Peru Process Coments
Free of charge (1.9
1. Taxpayer gathers million telephone
9. Refunds
information calls + 2.5 m on-site)
Even reclamos 8. Complaints Simple: 10 min
need to be signed • Before SUNAT (reclamos) 2. Registration for wait time + 7 min
by lawyer • Before court (apelaciones) RUC number processing; free
SUNAT has 7. Collection (cobranza coactiva) 3. Authorizing Through
judge-like • Payment order (ordenes de pago) receipts book licensed
powers; • Resoluciones de determinaciones (comprobantes de printshops,
actions do • Fines (resolucion de multa) pago, either by end-2008
not match factura or boleta) online; free
the debt
6. Auditing and control 4. Authorizing Delegated to
• Audit accounting books notary publics
• Control in roads (control movil)
• Inspectors visits to check use of
receipts (fedatarios)
5. Filing and payment
Time consumed in audits an issue Form Payment
(focus groups)
Electronic (PDT) Online
Businesses need to keep receipts 4 yrs Paper At bank

30. SURVEY OF TAX COMPLIANCE FLOW CHART
Profile Respondant
Client Information
Turnover
Legal entity
Activity
Tax regime
TAX REGIME: RUS TAX REGIME RER GENERAL REGIME
Registration Registration Registration
Unique Monthly
RUS payment Payroll Taxes Accounting books Accounting books
Keeping abreast of tax
changes Income Tax VAT Payroll Taxes Income Tax VAT Payroll Taxes
Payment on
Withholding
account of Monthly Value
Refunds Mechanisms: Large
buyers in transactions the Income Added Tax
of different products Tax
Withholding
Mechanisms: Large
Audits/Inspections by Annual buyers in
SUNAT income tax transactions of
declaration different products
Keeping abreast of tax
changes
Temporary
Objection and appeals Tax on Net
Refunds
Postponement and / or
Installment payment of
the Tax debt
Audits/Inspections Keeping abreast
by SUNAT of tax changes
Objection and
appeals Refunds
Postponement and / or
Installment payment of Audits/Inspections
the Tax debt by SUNAT
Objection and
appeals
Postponement and /
or Installment
payment of the Tax
debt
Perceptions of
SUNAT
Other information
Overall comments

31. C uadro N ° 46
C ON T R IB UYEN T ES IN SC R IT OS SEGÚN R ÉGIM EN T R IB UT A R IO Y C A N T ID A D D E A F ILIA D OS A ESSA LUD , 1997-2009 (M iles de co ntribuyentes)
R EGIST ER ED T A XP A YER S, A C C OR D IN G T O T A X R EGIM E A N D N UM B ER OF P EOP LE M EM B ER OF ESSA LUD , 1997-2009 (T ho usands o f taxpayers)
2008
C o ncepto D ic.
I. C o ntribuyentes co n R UC 1/ 4,309.1 R egistered T axpayers acco rding to
T ax R egime 1/
P rincipales C o ntribuyentes 2/ 14.7 Large T axpayers 2/
M ediano s y P equeño s C o ntribuyentes 3/ 4,294.4 M edium and Small taxpayers 3/
Régimen General 4/ 495.8 General Regime 4/
Tercera Categoría 487.6 Third Category
Otras rentas de Tercera Categoría 5/ 8.2 Others 5/
Régimen Especial de Renta 140.8 Special Income Tax
Régimen Único Simplificado 513.2 Single Simplified Regime
Trabajadores Independientes 3,237.9 Independent Workers
II. C antidad de afiliado s a Essalud 3,484.4 N o n R egistered T axpayers
Afiliados Regulares 6/ 2,661.8 Regular M embers 6/
Pensionistas o Cesantes 7/ 822.7 Pensioners 7/
1/ Sólo considera contribuyentes activos.
2/ La totalidad de los Principales Contribuyentes pertenecen al Régimen General.
3/ El total de M edianos y Pequeños Contribuyentes no coincide con la suma de las partes, pues un contribuyente puede estar afecto a más de un tributo.
4/ Se considera en el Régimen General a los contribuyentes afectos al Impuesto a la Renta de Tercera Categoría, excluido el Régimen Especial de Renta.
5/ Incluye a los contribuyentes comprendidos en regímenes especiales de Tercera Categoría, como los de Amazonía, Productores Agrarios y Frontera.
6/ Trabajadores declarados por los empleadores bajo el código de tributo de Essalud 5210 (Seguro Regular de Essalud).
7/ Pensionistas o cesantes declarados por los empleadores bajo el código de tributo de Essalud 5242 (Seguro Regular - Pensionistas).
Fuente: Superintendencia Nacional de Administración Tributaria (SUNAT).
Elaboración: SUNAT - Intendencia Nacional de Estudios Tributarios y Planeamiento.

32. C uadro N ° 27
IM P UEST O A LA R EN T A D E T ER C ER A C A T EGOR Í A - SEGÚN T A M A ÑO D E C ON T R IB UYEN T E, 2000-2009 (M illo nes de nuevo s so les)
IN C OM E T A X - T H IR D C A T EGOR Y, A C C OR D IN G T O T H E SIZ E OF T A XP A YER S, 2000-2009 (M illio ns o f nuevo s so les)
2008
C o ncepto T o tal
Total 14,920.7
Principales Contribuyentes
del ámbito nacional 13,302.1
Megas 1/ 3,916.4
Top 2/ 2,587.8
Resto de Principales Contribuyentes 3/ 6,797.9
Medianos y Pequeños Contribuyentes 4/ 1,618.6
Nota:
Corresponde a los pagos en efectivo, cheque y/o documentos valorados. No considera otras formas de pago de extinción de la obligación tributaria como compensación de saldos a favor y otros.
Considera los pagos a cuenta del Impuesto a la Renta de Tercera Categoría. A partir de mayo del 2003 hasta diciembre del 2004, incluye lo recaudado por Anticipo Adicional del Impuesto a la Renta.
1/ Considera 54 principales contribuyentes hasta enero del 2004, seleccionados por sus niveles de recaudación, ventas, compras y activos. A partir de febrero del 2004 considera 41 principales contribuyentes.
2/ Hasta enero del 2004 considera 200 principales contribuyentes, seleccionados por sus niveles de recaudación, ventas, compras y activos, diferentes a los contribuyentes Megas. A partir de febrero del 2004 considera 208 principales contribuyentes.
3/ Corresponde a lo recaudado por la Intendencia Nacional de Principales Contribuyentes y los Principales Contribuyentes de la Intendencia Regional Lima, sin considerar a los contribuyentes Megas ni Top.
Adicionalmente, considera lo recaudado por los restantes Principales Contribuyentes en el ámbito nacional.
4/ A partir del mes de noviembre 2002, 200 contribuyentes medianos y pequeños pasaron al directorio de la Intendencia Nacional de Principales Contribuyentes.
Fuente: Superintendencia Nacional de Administración Tributaria (SUNAT).
Elaboración: SUNAT - Intendencia Nacional de Estudios Tributarios y Planeamiento.

33. Chart: Number of clients per accountant
Number of clients for which each accountant helps to file the annual income tax return (under the general income tax regime)
20,000 7,000
18,000
6,000
16,000 Of the total 23,907 accountants The 20,798 accountants with
Number of a ccountants
Number of a ccountants
14,000 identified, 20,798 accountants 5,000 up to 20 different clients
have up to 20 different clients account for 102,909 tax
12,000 for which they file the annual filings (out of approx.
4,000
10,000 income tax return under the 240,000 tax filings which
general income tax regime 3,000 report the RUC number of the
8,000
6,000 2,000
4,000
1,000
2,000
0 0
1-10 11-20 21-30 31-40 41-50 51-338 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Number of clients per accountant Number of clients per accountant
Notes: Based on 240,000 annual tax returns in 2006 under the general income tax regime which report the RUC number of the accountant (the
RUC number is used as the basis for identifying all the clients of a given accountant). Excludes 60,000 annual tax returns which report the
accountant's name but do not report the RUC number of the accountant.
Source: SUNAT.