2015 and 2016, 5% on results generated from 2017 onwards. This, currently valid Dividend Tax rate of 5%, is imposed on distributions of profits to nonresidents and individuals by resident companies and by branches, permanent establishments and agencies of foreign companies. Value added tax (VAT) The general rate of VAT is 18% (16% of VAT itself plus 2% of municipal promotion tax). VAT in Peru is generally imposed on the following transactions: sale of movable property, rendering and use of services, construction contracts, first sale of real property (except land) made by builders and the import of goods. As occurs with many indirect tax systems, to determine the tax payable by the company performing the above-mentioned transactions (output VAT), the VAT paid in the company's acquisitions is accepted as a tax credit (input VAT). Exporters can recover VAT paid in acquisitions for up to 18 per cent of an export's free on board (FOB) value. Companies that have not commenced productive operations with a pre-production stage equal to or longer than two years may resort to a special system to obtain the advanced recovery of the VAT levied on certain acquisitions provided that they execute an investment agreement with the state. Excise Tax Excise tax rates, and the manner on which the tax is applied, depend on the type of goods or services. The specific goods which are subject to excise tax include fuel, cigarettes, beer, liquor, and vehicles. Tax administration The Superintendencia Nacional de Administración Tributaria (SUNAT) (English version: National Superintendency of Tax Administration) is the government administrative body and the most important tax authority responsible for collecting of the national taxes. It means all taxes assigned as public resources of the national government (taxes on income, sales, assets and financial transactions, as well as customs duties), public pensions and health security system contributions. In addition to this, each of the approximately 1 800 municipalities in Peru is considered as a separate tax authority with respect to municipal taxes (mainly taxes on the ownership and transfer of immovable property, real estate and payment of municipal public services). Tax authorities have discretionary faculties to exercise their auditing duties, which are not conducted on a routine cycle but rather on a variable basis. Larger businesses are usually audited every year, while medium-sized and small businesses may be audited on a biannual or lower frequency rate. However, all Peruvian-resident legal entities must