The Peruvian Tax Authority analyzed whether, in a demerger situation between two Colombian entities in which the assets transferred include Peruvian shares, the Non-Discrimination Clause of Decision 578 would apply to invoke the tax-free regime for Peruvian domestic reorganizations.The Tax Authority interpreted that, because the domestic rules for demergers require not only that the spun-off entity be a Peruvian resident but also that the receiving entity be a Peruvian resident, the Non-Discrimination clause does not apply and, thus, the transfer of Peruvian shares via demerger will trigger a capital gains tax.In Ruling 89-2023, published on 11 July 2023, the Peruvian...