Technical Study of Production Losses

We provide services in the preparation of Technical Reports to justify losses due to shrinkage generated during production processes and/or other operational processes within your company.

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These reports support the recognition of such losses as deductible expenses and help prevent objections from the Peruvian tax authority (SUNAT) during potential tax audits. In addition, they allow you to identify the actual loss incurred in the aforementioned processes.

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According to the current Income Tax (IR) legislation in Peru, shrinkage losses are considered deductible expenses for income tax purposes, provided they are supported by a technical report issued by an independent, qualified, and licensed professional, or by the relevant technical authority.

Our reports are prepared using specific methodologies and procedures, in accordance with SUNAT requirements, in order to determine the percentage of shrinkage in raw materials, inputs, and/or finished products used or produced by the company.

 

The procedures include:

• Understanding the business

• Identification of inputs, raw materials, and products, as applicable

• Identification of the origin of the shrinkage

• Process review and analysis

• Valuation of inventory shrinkage

• Verification

• Testing

• Report issuance

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​Definition of shrinkage:

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Shrinkage is the physical loss in volume, weight or quantity of inventories, caused by causes inherent to their nature or to the production process.

These can be generated in the company's production process, as well as in storage and marketing, and are generally related to the nature of the good and the characteristics of the company's production and marketing cycle.