On 30 December 2015, the Peruvian Congress published Law 30404  in the Official Journal, which, amongst other aspects, extends the full tax exemption applicable to gains realized through life insurance policies until the 31st of December 2018.
The recent legal reform introduced by Law 30404 has had a practical impact on life insurance policies to the extent that the tax exemption foreseen in article 19 (f) in conjunction with article 24 (g) of the Peruvian Income Tax law  has been extended by 3 years, from the 31st of December 2015 to the 31st of December 2018. The tax exemption applies to any capital gain derived from the difference between (i) the actual value of the premiums or instalments paid by the Peruvian resident policyholder to the insurer and (ii) the payments made to the Peruvian resident policyholder by the insurer, at a certain time set forth in the insurance contract, and any benefits or participations on life insurance earned by the policyholder. The tax treatment applicable to the death benefit of a life insurance contract has not been modified: the tax exemption on life insurance death proceeds paid to Peruvian resident beneficiaries still applies based on article 18.b of the Peruvian Income tax Law.
Pursuant to the entry into force of the new Law 30404 in Peru, the use of life insurance for Peruvian HNWIs remains an attractive wealth planning tool, as it provides for a tax efficient investment vehicle with (i) full tax deferral during the life of the contract, (ii) tax exemption upon partial or total surrender of the policy by the Peruvian resident policyholder and, (iii) tax exemption on the life insurance proceeds paid to Peruvian resident beneficiaries.
Besides taxation aspects, the life insurance contract may well fit the overall objectives and needs of Peruvian resident HNWI Clients in terms of (a) asset and investor protection e.g. state-controlled policyholder protection regime, securities held off balance sheet of the custodian bank, (b) estate and succession planning e.g. ability to nominate revocable or irrevocable beneficiaries, (c) financial privacy e.g. confidentiality maintained between the client, the insurance company and the investment managers, (d) portability e.g. cross-border solutions for multi-jurisdictional families, and (e) flexibility e.g. possibility to maintain existing investment managers and financial advisors.
If you have any question or require further information, please contact your usual Lombard International Assurance representative.
 Diario Oficial de Perú / Miércoles de 30 de diciembre de 2015, pp. 571221, Ley 30404 (Ley que prorroga la vigencia de beneficios y exoneraciones tributarias)
 Texto Único Ordenado de la Ley del Impuesto sobre la Renta aprobado por el Decreto Supremo N° 179-2004-EF