This research work approaches the constitutional controversy generated by the interpretations of SUNAT and the Tax Court of the Second Paragraph of Subparagraph e) of the Article 56 of the Income Tax Law that regulates the tax basis of the tax for the dividend’s distribution from branches in Peru to no-domiciled head office. Both SUNAT and the Tax Court consider that in order to establish the taxable base of the tax, the Income Tax Law provides a fiction that does not allow to consider the losses of previous years, which generates in some cases that the non-domiciled entity must pay tax on a profit distribution that does not exist because it still has losses from previous years. We consider that the interpretation of SUNAT and the Tax Court vulnerates constitutional principles that assist the non-domiciled taxpayer, such as the Constitutional Principles of respect for Tax Capacity, Res...