New promotional tax legislation approved in Peru for hydrocarbons and mining activities

The Peruvian Congress has recently enacted Laws 27623 and 27624, which aim to promote mining and hydrocarbons exploration activities, respectively. The first of these laws grants mining concessionaires the right to recover any Value Added Tax (IGV) and Municipal Promotional Tax (which taken together total 18%) paid in connection with exploration of the mining site. In turn, Law 27624 provides for the same tax benefit to apply to entities that execute a licence or service contract for the exploration and exploitation of hydrocarbons, as well as entities that execute the so-called contracts for technical assessment (“contractors”).