Sector: Agriculture, including services incidental to agriculture
Obligations Concerned: Senior Management and Boards of Directors (Article 9.11)
Level of Government: Central
Measures: Primary Products Marketing Act 1953
Description: Investment
Under the Primary Products Marketing Act 1953, the New Zealand Government may impose regulations to enable the establishment of statutory marketing authorities with monopoly marketing and acquisition powers (or lesser powers) for “primary products”, being products derived from beekeeping, fruit growing, hop growing, deer farming or game deer, or goats, being the fur bristles or fibres grown by the goat.
Regulations may be issued under the Primary Products Marketing Act 1953 concerning a broad range of the marketing authority’s functions, powers and activities. In particular, regulations may require that board members or personnel be nationals of or resident in New Zealand.
Sector: Air Transportation
Obligations Concerned: National Treatment (Article 9.4) Senior Management and Boards of Directors (Article 9.11)
Level of Government: Central
Measures: Civil Aviation Act 1990
Ministerial Guidelines
Description: Investment
Only a licensed air transport enterprise may provide international scheduled air services as a New Zealand international airline. Licences to provide international scheduled air services as a New Zealand international airline are subject to certain conditions to ensure compliance with New Zealand’s air services agreements. Such conditions may include requirements that an airline is substantially owned and effectively controlled by New Zealand nationals, has its principal place of business in New Zealand or is subject to the effective regulatory control of the New Zealand Civil Aviation Authority.
Sector: Air Transportation
Obligations Concerned: National Treatment (Article 9.4) Senior Management and Boards of Directors (Article 9.11)
Level of Government: Central
Measures: Constitution of Air New Zealand Limited
Description: Investment
No one foreign national may hold more than 10 per cent of shares that confer voting rights in Air New Zealand unless they have the permission of the Kiwi Shareholder (1). In addition:
(a) at least three members of the Board of Directors must be ordinarily resident in New Zealand; and
(b) more than half of the Board of Directors must be New Zealand citizens.
Sector: All
Obligations Concerned: National Treatment (Article 9.4) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11)
Level of Government: Central
Measures: Overseas Investment Act 2005 Fisheries Act 1996
Overseas Investment Regulations 2005
Description: Investment
Consistent with New Zealand’s overseas investment regime as set out in the relevant provisions of the Overseas Investment Act 2005, the Fisheries Act 1996 and the Overseas Investment Regulations 2005, the following investment activities require prior approval from the New Zealand Government:
(a) acquisition or control by non-government sources of 25 per cent or more of any class of shares (2) or voting power (3) in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$200 million;
(b) commencement of business operations or acquisition of an existing business by non- government sources, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$200 million;
(c) acquisition or control by government sources of 25 per cent or more of any class of shares (4) or voting power (5) in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$100 million;
(d) commencement of business operations or acquisition of an existing business by government sources, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$100 million;
(e) acquisition or control, regardless of dollar value, of certain categories of land that are regarded as sensitive or require specific approval according to New Zealand’s overseas investment legislation; and
(f) any transaction, regardless of dollar value, that would result in an overseas investment in fishing quota.
Overseas investors must comply with the criteria set out in the overseas investment regime and any conditions specified by the regulator and the relevant Minister or Ministers.
This entry should be read in conjunction with Annex II – New Zealand – 7 and 8.
Sector: All
Obligations concerned: Performance Requirements (Article 9.10)
Level of Government: Central
Measures: Income Tax Act 2007
Goods and Services Tax Act 1985 Estate and Gift Duties Act 1968 Stamp and Cheque Duties Act 1971 Gaming Duties Act 1971
Tax Administration Act 1994
Description: Any existing non-conforming taxation measures.
SCHEDULE OF PERU
INTRODUCTORY NOTES
1. Description provides a general non-binding description of the measure for which the entry is made.
2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation or other measure identified in the Measures element of that entry.
Sector: All
Sub-Sector:
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Political Constitution of Peru (Constitución Política del Perú) (1993), article 71
Legislative Decree N° 757, “El Peruano” Official Gazette of November 13, 1991, Framework Law for Private Investment Growth (Ley Marco para el Crecimiento de la Inversión Privada), article 13
Description: Investment
No foreign national, enterprise constituted under foreign law or enterprise constituted under Peruvian law, and owned in whole or part, directly or indirectly, by foreign nationals may acquire or own, directly or indirectly, by any title, land or water (including mines, forest or energy sources) located within 50 kilometres of the Peruvian border. Exceptions may be authorised by Supreme Decree approved by the Council of Ministers in conformity with law in cases of expressly declared public necessity.
For each case of acquisition or possession within the referred area, the investor shall hand in the correspondent request to the relevant Ministry, pursuant to laws in force. For example, authorisations of this kind have been given in the mining sector.
Sector: Services related to Fishing
Sub-Sector:
Obligations Concerned: National Treatment (Article 10.3)
Level of Government: Central
Measures: Supreme Decree N° 012-2001-PE, “El Peruano” Official Gazette of March 14, 2001, Regulation of the Fisheries Law (Reglamento de la Ley General de Pesca), articles 67, 68, 69 and 70
Description: Cross-Border Trade in Services
Before commencing operations, shipowners of foreign- flagged fishing vessels must present an unconditional, irrevocable, letter of guarantee with automatic execution and joint liability, which will be valid for no more than 30 calendar days after the expiry of the fishing permit, issued for the benefit and to the satisfaction of the Ministry of Production by a financial, banking or insurance institution recognised by the Superintendence of Banking, Insurance and and Private Administrators of Pension Funds (Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones (AFP)). Such letter shall be issued in an amount equal to 25 per cent of the amount that must be paid for fishing rights.
A shipowner of a foreign-flagged fishing vessel that is not of large scale (according to the regulation mentioned above) and that operates in Peruvian jurisdictional waters must have the Satellite Tracking System in its vessel, except for shipowners operating in highly migratory fisheries who are excepted from this obligation by a Ministerial Resolution.
Foreign-flagged fishing vessels with a fishing permit must have on board a scientific technical observer appointed by the Sea Institute of Peru (Instituto del Mar del Perú (IMARPE)). The shipowner must provide accommodation on board for that representative and a daily stipend, which must be deposited in a special account to be administered by IMARPE.
Shipowners of foreign-flagged fishing vessels that operate in Peruvian jurisdictional waters must hire a minimum of 30 per cent of Peruvian crew, subject to applicable domestic legislation.
Sector: Radio and Television Broadcasting Services
Sub-Sector:
Obligations Concerned: National Treatment (Article 9.4) Local Presence (Article 10.6)
Level of Government: Central
Measures: Law Nº 28278, “El Peruano” Official Gazette of July 16 2004, Radio and Television Law (Ley de Radio y Televisión), article 24
Description: Investment and Cross-Border Trade in Services
Only Peruvian nationals or juridical persons organised under Peruvian law and domiciled in Peru may be authorised or licensed to offer radio or television broadcast services.
No foreign national may hold an authorisation or a licence directly or through a sole proprietorship.
Sector: Audio-Visual Services
Sub-Sector:
Obligations Concerned: Performance Requirements (Article 9.10) National Treatment (Article 10.3)
Level of Government: Central
Measures: Law Nº 28278, “El Peruano” Official Gazette of July 16, 2004, Radio and Television Law (Ley de Radio y Televisión), Eighth Complementary and Final Provision
Description: Investment and Cross-Border Trade in Services
At least 30 per cent, on average, of the total weekly programs by free-to-air television broadcasters must be produced in Peru and broadcasted between the hours of 05:00 and 24:00.
Sector: Radio Broadcasting Services
Sub-Sector:
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4)
Level of Government: Central
Measures: Supreme Decree N° 005-2005-MTC, “El Peruano” Official Gazette of February 15, 2005, Regulation of the Radio and Television Law (Reglamento de la Ley de Radio y Televisión), article 20
Description: Investment and Cross-Border Trade in Services
If a foreign national is, directly or indirectly, a shareholder, partner, or associate in a juridical person, that juridical person may not hold a broadcasting authorisation in a zone bordering that foreign national’s country of origin, except in a case of public necessity authorised by the Council of Ministers.
This restriction does not apply to juridical persons with foreign equity which have two or more current authorisations, as long as they are of the same frequency band.
Sector: All
Sub-Sector:
Obligations Concerned: Senior Management and Boards of Directors (Article 9.11) National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4)
Level of Government: Central
Measures: Legislative Decree N° 689, “El Peruano” Official Gazette of November 5, 1991, Law for Foreign Workers Recruitment (Ley para la Contratación de Trabajadores Extranjeros), articles 1, 3, 4, 5 (modified by Law N° 26196) and 6
Description: Investment and Cross-Border Trade in Services
All employers in Peru, independently of their activity or nationality, shall give preferential treatment to nationals when hiring its employees.
Foreign natural persons who are service suppliers and who are employed by a service-supplying enterprise may supply services in Peru under a written and time-limited employment contract, which may not exceed three years.
The contract may be subsequently extended for like periods of time. Service-supplying enterprises must show proof of the company’s commitment to train national personnel in the same occupation.
Foreign natural persons may not represent more than 20 per cent of the total number of employees of an enterprise, and their pay may not exceed 30 per cent of the total payroll for wages and salaries. These percentages will not apply in the following cases:
(a) when the foreign national supplying the service is the spouse, parent, child or sibling of a Peruvian national;
(b) when the personnel is working for a foreign enterprise supplying international land, air and water transport services under a foreign flag and registration;
(c) when the foreign personnel works in a multinational bank or an enterprise that supplies multinational services, subject to the laws governing specific cases;
(d) for a foreign investor, provided that its investment permanently maintains in Peru at least five tax units (Unidad Impositiva Tributaria - UIT) (1) during the life of its contract;
(e) for artists, athletes or other service suppliers engaged in public performances in Peruvian territory, for a maximum of three months a year;
(f) when a foreign national has an immigrant visa;
(g) for a foreign national whose country of origin has a labour reciprocity or dual nationality agreement with Peru; and
(h) when foreign personnel supplies services in Peru under a bilateral or multilateral agreement concluded by the Peruvian Government.
Employers may request waivers for the percentages related to the number of foreign employees and their share of the company’s payroll in those cases involving:
(a) specialised professional or technical personnel;
(b) directors or management personnel for new a business activity or reconverted business activity;
(c) teachers hired for post-secondary education, or for foreign private elementary and high schools; or for language teaching in local private schools; or for specialised language centres;
(d) personnel working for public or private enterprises with contractual agreements with public organisations, institutions or enterprises; and
(e) in any other case determined by Supreme Decree pursuant to specialisation, qualification or experience criteria.
Sector: Professional Services
Sub-Sector: Legal services
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)
Level of Government: Central
Measures: Legislative Decree N° 1049, “El Peruano” Official Gazette of June 26, 2008, Notaries Law (Ley del Notariado), article 10
Description: Investment and Cross-Border Trade in Services
Only a Peruvian national by birth may supply notary services.
Sector: Professional Services
Sub-Sector: Architectural services
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3)
Level of Government: Central
Measures: Law Nº 14085, “El Peruano” Official Gazette of June 30, 1962, Law establishing the Peruvian Association of Architects (Ley de Creación del Colegio de Arquitectos del Perú)
Law Nº 16053, “El Peruano” Official Gazette of February 14, 1966, Professional Practice Law, authorises the Peruvian Associations of Architects and Engineers to supervise Engineering and Architecture professionals of the Nation (Ley del Ejercicio Profesional, Autoriza a los Colegios de Arquitectos e Ingenieros del Perú para supervisar a los profesionales de Ingeniería y Arquitectura de la República), article 1
National Architects Council Agreement (Acuerdo del Consejo Nacional de Arquitectos), approved in Session Nº 04-2009 of December 15, 2009
Description: Investment and Cross-Border Trade in Services
To practice as an architect in Peru, an individual must join the Peruvian Association of Architects (Colegio de Arquitectos del Perú). The enrolment fees are different for Peruvians and foreigners, and subject to review by the Peruvian Association of Architects (Colegio de Arquitectos del Perú). For greater transparency, the current enrolment fees are:
(a) S/. 775 for a Peruvian national with a degree from a Peruvian university;
(b) S/. 1,240 for a Peruvian national with a degree from a foreign university;
(c) S/. 1,240 for a foreign national with a degree from a Peruvian university; or
(d) S/. 3,100 for a foreign national with a degree from a foreign university.
Also, to obtain temporary registration, non-resident foreign architects must have a contract of association with a Peruvian architect residing in Peru.
Sector: Professional Services
Sub-Sector: Auditing services
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6)
Level of Government: Central
Measures: Rules of the Association of Public Accountants of Lima (Reglamento Interno del Colegio de Contadores Públicos de Lima), articles 145 and 14
Description: Investment and Cross-Border Trade in Services
Auditing societies shall be constituted only and exclusively by public accountants licensed and resident in the country and duly qualified by the Association of Public Accountants of Lima (Colegio de Contadores Públicos de Lima).
Sector: Security Services
Sub-Sector: