Law 31659 increases the deduction rates of expenses related to Scientific Research, Technological Development, and Technological Innovation. These tax incentives will be valid until 31 December 2025.On 30 December 2022, Peru enacted Law 31659, increasing the deduction rates for Scientific Research, Technological Development, and Technological Innovation expenses (R&D expenses). The new tax incentives are effective as of 1 January 2023 until 31 December 2025.BackgroundLaw 30309 introduced a temporary tax incentive allowing taxpayers to deduct R&D expenses, according to the following rules:Taxpayers with net income not exceeding 2,300 Tax Units (approx. US$2,996,000) were entitled to deduct: (i) 215%: if the R&D...