Peru Law No. 32434: Productive, Competitive and Sustainable Transformation of the Agricultural Sector

Peru Law No. 32434, published on September 10, 2025, establishes the legal framework to promote the productive, competitive and sustainable transformation of the Peruvian agricultural sector with social protection. Its purpose is to foster modern agriculture by promoting investment, formal employment, the formalization of small agricultural producers, legal certainty over agricultural property, producer associations and integrated value chains. The law covers small agricultural producers and agricultural enterprises engaged in crop production, livestock activities and certain agro-industrial activities. It promotes agricultural digitalization, research, technological innovation, training, production modernization, conservation and improvement of genetic resources, and sustainable agricultural practices. It also establishes a special tax framework for agricultural enterprises, income tax and value-added tax benefits, accelerated depreciation for investments in hydraulic and irrigation infrastructure, and additional deductions for purchases from registered small agricultural producers. Furthermore, the law establishes a promotion and financing system for small agricultural producers and measures to strengthen producer associations, labor formalization and market access. Expected outcomes include improvements in agricultural productivity, competitiveness, formalization and economic opportunities for agricultural producers. The law has national scope, generally entered into force on September 11, 2025, and does not establish an overall expiration date. Its income tax and value-added tax provisions entered into force on January 1, 2026.