Congress has published legislative decree 1257, the purpose of which is to set up instalment payments of tax liabilities and other revenues administered by SUNAT (FRAES). This aims to reconcile those tax debts and other revenues administered by the National Customs and Tax Administration Supervisor (SUNAT) that are in administrative or court litigation or subject to enforced collection measures, as well as to condone tax debts of less than one (1) UIT [taxation unit].

Debts that have been bundled into the FRAES are tax debts, including income tax, general sales tax, selective consumption tax, special mining tax, customs duties, and others, as well as other revenue streams handled by SUNAT; plus the pertinent interest, updates and capitalised interest applicable by law. These have been updated to the date when the request for inclusion in the FRAES was accepted.

The subjects who want to be considered in the FRAES are:

1. i) Debtors with annual income classified as third category income of under 2,300 UITs.
2. ii) Debtors who in all or some periods have declared under the New RUS, with annual income of under 2,300 UIT (gross monthly income).

iii) Natural persons who have not had third category incomes or declared under the New RUS (includes natural persons without RUC with customs duty debt).

Subjects declaring to the FRAES will receive a discount coupon that can be applied to the interest, updates and capitalised interest, and also to the fines and the interest these incur:

Debt ranges, expressed in UITs/Discount coupons:

• From 0 to 100: 90%
• Between 100 and 2000: 70%
• Over 2000: 50%

There is provision for the condoning of tax debts unpaid at 9th December 2016, replaced by taxes administered by SUNAT, applicable to debtors qualifying for FRAES, whose tax debt as of 30th September 2016 is less than PEN 3,950.