Corporate tax collection in times of Covid-19 pandemic: an analysis of Peruvian economy

Cordoba Buiza, Franklin, Yupanqui Castillo, Ana Leyla and Werner-Masters, Katarzyna ORCID: https://orcid.org/0000-0003-4874-516X (2024) Corporate tax collection in times of Covid-19 pandemic: an analysis of Peruvian economy. Public and Municipal Finance. ISSN 2222-1867 (In Press)

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Abstract

Tax collection is a source of financing expenses for governments, including the mitigation of the social and economic impacts of diverse disruptions. This applies to Peru, where the amount of corporate tax collected during the Covid-19 pandemic showed a notable variation. This study aims to analyze the impact of various tax management initiatives of the Peruvian government on tax collection during the pandemic, from 2019 to 2021. The methodology employs a quantitative approach, with a non-experimental research design and longitudinal measurement. A documentary analysis was applied to examine data composed of annual statistical reports relevant to the tax administration organization in Peru, videos, documentaries, conferences and information related to tax collection. The findings clearly show a fiscal slowdown in 2020 as a consequence of the pandemic; however a considerable growth in tax revenues across different tax regimes, geographic areas of the country, economic sectors, and categories of different taxes collected is reported in 2021. This outcome results from the implementation of various fiscal tax relief measures in early stages of the pandemic, with their effect being observed in 2021. Thus, it is argued that these measures contributed to the reactivation of the business economy in Peru, improving the economic situation of the country.