UNIVERSIDAD SAN IGNACIO DE LOYOLA

FINAL PROJECT

Analysis of the Investments of Works by Taxes and

their Effects on the Peruvian Economic State from
2009 to the Present.

Students:
 Veto Carbonelli Zanabria
 Walter Ugazon Camacho
 Grace Steffanie Vidal Castro
 Jackelin Zanabria Villano
 Peruvian State has been using in recent years a set of mechanisms that
incorporate the private sector in the development of infrastructure and
public services, as well as private projects such as the works for Taxes
(OxI) which has been developed in our country since 2008, when Law No.
29230 called "Works for taxes" was issued.

ALTERNATIVE  execution of works with the excuse of doing it for taxes

to be paid by the company

* Since its creation, Peru has been able to implement projects in sectors such as transport,
energy, telecommunications, agriculture and irrigation as well as water and sanitation.

* Due to the importance of these mechanisms, it is necessary to research for more

information about their proper use among the actors involved, both in the public and private
sectors.
PROBLEM APPROACH:

* Time to obtain an accepted Budget and the total time for

excecution of a work is long
* The corruption and low activity of construction made our Peruvian
Government analize the decisión to create a law that will benefit
economic sectors.

 2009: “WORKS BY TAXES ACT” law

 7 years later in 2017: the investment increased from 6 million to

583 million soles.
JUSTIFICATION FOR THE PROBLEM:
* The formulation of the problem will be performed to analyze the investments made by
private companies from 2009 to the present for the benefit of society by means of the priority
works carried out.

WE WILL:

 Evaluate the number of participants of these companies,

and their percentage of participation throughout the time
interval.
 Evaluate the regions where more works are carried out
through by means of Works by Taxes.
 Analyze the sectors in which private companies invest
through the Works by Taxes.
 Evaluate the multiplier effect of these works carried out by
private companies in the different regions in terms of job
creation, purchase of construction materials, and other
aspects that promote an economic activity in Peru.
BACKGROUND:
* The Law on Works by Taxes (OxI in Spanish), before becoming law, was modified by the
Banking, Finance and Financial Intelligence Committee of the Congress of the Republic.

* Peru has been able to implement projects in sectors such as transport, energy,
telecommunications, agriculture and irrigation; as well as water and sanitation.

* The Ministry of Economy and Finance states: that the objective of its creation is to promote
the execution of Public Investment Projects of Regional and Local Impact, with the participation
of the private sector”.
THEORICAL FRAMEWORK:
 Development of Construction sector in a country is very important for its economic
growth.

Because of this….

* Peru has become a good option to invest by bringing together a set of economic,
institutional, administrative and legal conditions favorable to economic activity, which
creates a favorable and convenient environment for investors.

* 76 public investment projects were awarded through Works by Taxes (OxI), for S/ 960
million; an increase of 126% with respect to that awarded in 2016.
RISK!
*** The use of the mechanism implies lower income for Income Tax in the future***
1. To analyze the participation
of private companies in the
participation of public works by
tax.

2: To evaluate the sectors which are benefited

from the modality.

3: To assess the regions and localities where this new

mechanism is applied in terms of infrastructure and
amount of investment made by private sector.
TYPE OF RESEARCH RESEARCH DESIGN

 Our investigations are based in quantitative methodology because we are comparing the
different economically results based on real information of data basis by banks in Peru and
graphs with exact numbers that make the analysis foundation in our .
 VARIABLES
 Work for Taxes
 Disadvantages
 Advantages
 Increase in the Peruvian  Affects the budgetary
Economy. availability of future
 Many regions of Peru management
have a better quality of  There is no Organization
life.  Projects poorly executed
PARTICIPANTS
 Projects  Private and public companies

 Population
INSTRUMENTS OF RESEARCH
1. National Institute of Statistics and Informatics

2. ProInversion

3. Ministry of Economy and Finance

 PROCEDURE

1. Information gathering 2. Use of computer programs

PRESENTATION OF RESULTS AND DISCUSSION

Work For Taxes Investments 2009-2017

728.9
674.1

628.6
539.1
MONTO (S/ MILLONES)

330.4
288.6

182.7
10.3
6

2009 2010 2011 2012 2013 2014 2015 2016 2017

AÑO
PRESENTATION OF RESULTS AND DISCUSSION

Work for Taxes Investments in each Region (2009 -2014)

344.5
MONTO (S/ MILLONES)

151.5

141.4
119
102.9

100.8

65

43.6
23.2
32

31

10.2

6.2

6.2
4.2

3.8
REGIÓN
PRESENTATION OF RESULTS AND DISCUSSION
 There should be more participation of the Peruvian government in the
motivation to companies to invest in social issues as a way to pay the
taxes that they have to pay as an obligation to avoid few investment and
to increase the amount of companies

 Government should motivate companies to invest money in other

Regions such as Ica and Huancavelica (both with low amount of money
invested by this modality) to generate an equal development of all
Peruvian regions.
REFERENCES
 [1] Albújar A. & Gómez E. (2016). Works for Taxes: Factors that promote the participation of private
companies. Recovered from:
https://www.esan.edu.pe/publicaciones/2016/04/12/Obras%20por%20impuestos.pdf

 [2] Ministry of Economy and Finance (2017). Methodological Guide: The route of investment in Works for
Taxes. Recovered from:
https://www.mef.gob.pe/contenidos/inv_privada/capacitaciones/guia_metodologica_oxi.pdf

 [3] Ministry of Economy and Finance (2017). reception manual, liquidation and issuance of CIPRL / CIPGN
projects executed under the modality of Works for Taxes. Recovered from:
https://www.mef.gob.pe/contenidos/inv_privada/app/manual_oxi_CIPRL_CIPGN.pdf

 [4] General Directorate for the Promotion of Private Investment Policy (2017). Works for Alternative Taxes
for the development of Public Infrastructure. Recovered from: http://www.minam.gob.pe/oficina-general-
de-planeamiento-y-presupuesto/wp-content/uploads/sites/139/2018/01/28.06.2017-Obras-por-Impuestos-
MEF.pdf

 [5] Villar P. (2018). Public investment grows through works for taxes. Comercio. Recovered from:
https://elcomercio.pe/economia/crece-inversion-publica-traves-obras-impuestos-noticia-505120

 [6] BR Baltazar Flores & Melina Jhesenia (2017). Management of works by taxes (Undergraduate thesis).
Recovered from: http://repositorio.uwiener.edu.pe/bitstream/handle/123456789/1182/TITULO%20-
%20Baltazar%20Flores,%20Melina%20Jhesenia.pdf?sequence=1&isAllowed=y