Fifth-category income tax in Peru
If you are on a payroll, your employer withholds fifth-category tax every month. It is not a flat rate: SUNAT projects the year, subtracts 7 UIT, and applies 8% to 30% brackets. For 2026 the UIT is S/5,500 (Supreme Decree No. 301-2025-EF).
At S/5,000 a month, two Law 27735 bonuses, and the 9% extraordinary bonus (Law 29351):
- Annual gross: S/70,900
- Minus 7 UIT (S/38,500): net S/32,400
- Annual tax: S/2,886
- January withholding: S/240.50
This does not replace your employer’s payroll or a SUNAT ruling. It does not subtract AFP/ONP. CTS is not fifth-category income (Legislative Decree 650).
How it is calculated
Gross = 12 × salary + ordinary bonuses + 9% EsSalud + other Net = max(gross − 7 UIT, 0) Tax = 8% / 14% / 17% / 20% / 30% brackets on net January–March withholding = tax ÷ 12
SUNAT’s official guide uses the same steps, including the divisor that changes in April, August, and December.
2026 UIT and brackets
| Item | 2026 amount |
|---|---|
| UIT (S.D. 301-2025-EF) | S/5,500 |
| 7 UIT deduction (Income Tax Act art. 46) | S/38,500 |
| Extra expenses cap 3 UIT (annual return only) | S/16,500 |
| Net-income bracket | In 2026 soles | Rate |
|---|---|---|
| Up to 5 UIT | Up to S/27,500 | 8% |
| More than 5 up to 20 UIT | S/27,500 to S/110,000 | 14% |
| More than 20 up to 35 UIT | S/110,000 to S/192,500 | 17% |
| More than 35 up to 45 UIT | S/192,500 to S/247,500 | 20% |
| More than 45 UIT | Over S/247,500 | 30% |
Rates come from article 53 of the Income Tax Act (in force since 2015). The UIT changes each year; the rates do not.
Example at S/5,000
| Step | Math | Amount |
|---|---|---|
| 12 salaries | 5,000 × 12 | S/60,000 |
| July and December bonuses | 5,000 × 2 | S/10,000 |
| 9% EsSalud bonus | 10,000 × 9% | S/900 |
| Gross income | S/70,900 | |
| 7 UIT deduction | S/38,500 | |
| Net income | 70,900 − 38,500 | S/32,400 |
| 5 UIT at 8% | 27,500 × 8% | S/2,200 |
| Excess at 14% | 4,900 × 14% | S/686 |
| Annual tax | S/2,886 | |
| January withholding | 2,886 ÷ 12 | S/240.50 |
Bonuses yes, CTS no
July and December bonuses (Law 27735) and the 9% extraordinary bonus (Law 29351 / 30334) increase fifth-category tax: SUNAT includes them in its worked example.
CTS (Legislative Decree 650) is not added. If your payslip shows a CTS deposit, do not enter it as other fifth-category income.
Expenses up to 3 UIT
You may deduct up to 3 UIT (S/16,500) of certain receipted expenses, but only on the annual return. SUNAT states that the employer does not use them for monthly withholding. In the S/5,000 example, S/6,000 of expenses cut annual tax from S/2,886 to S/2,112, without changing January’s S/240.50.
FAQ
When projected annual gross exceeds 7 UIT = S/38,500. With 14 payments (12 salaries + 2 bonuses) the threshold is about S/2,750 a month. With the extra 9%, about S/2,715. A S/2,500 salary with those items is S/35,450 and has no withholding.
No. CTS is not fifth-category income. Ordinary bonuses and the 9% EsSalud bonus are.
No. They apply only on the annual return. Employer withholding uses only the 7 UIT deduction.
January–March: ÷ 12. April: (tax − Jan–Mar withholding) ÷ 9. May–July: ÷ 8. August: ÷ 5. September–November: ÷ 4. December: true-up by subtracting everything withheld from January to November.
SUNAT requires STEP 5: add that extraordinary payment to net income, recompute tax, and withhold the difference on top of ordinary fifth-category withholding.