On 10 May 2020, Peru’s Executive Power enacted Legislative Decree 1488, establishing special depreciation rules. This measure responds to the COVID-19 crisis. Legislative Decree 1488 is effective 1 January 2021.BackgroundCurrently, maximum annual depreciation percentages are as follows:Buildings and construction: 5%Vehicles for ground transportation (except railways) and ovens in general: 20%Machinery and equipment used for mining, oil and construction activities; except office furniture and equipment: 20%Data processing equipment: 25%Machinery and equipment acquired as from 1 January 1991: 10%Other fixed assets: 10%Legislative Decree 1488Special depreciation regimeThe decree establishes a special depreciation regime under which taxpayers may claim 20% depreciation for buildings and construction if: (1) construction...