This document offers guidance to subnational governments in Peru on managing risks that affect the efficient administration and collection of property taxes. Property taxes are a major source of revenue for subnational governments in Peru, yet collection rates appear low compared to other countries in Latin America.

The guidance is a product of the Basel Institute’s Subnational Public Finance Management Strengthening Programme (Programa GFP), supported by the Swiss SECO Cooperation in Peru since 2015.

It is the first in a series of documents on risk management to improve the delivery of public services and goods at the subnational level. Using the guidance, subnational governments will be better able to develop relevant control measures for their annual action plan on internal controls.

Effective implementation of these measures will enable subnational governments to achieve their institutional objectives more efficiently, thus better serving the people of Peru.

The guidance document, published in Spanish, is based on the provisions of a Peruvian Government directive and guidelines on risk management and internal controls for state entities. It also draws on the experiences of our Public Finance Management team providing technical assistance to officials in the Peruvian regions and municipalities of Abancay, Cusco, Piura, Tarapoto and Trujillo.