Venezuela

Partial reform of the Master Hydrocarbons Law

On 29 January 2026, a partial reform of the Master Hydrocarbons Law was enacted.  From a tax perspective, the reform replaces the previous layered regime for oil activities with a royalty of up to 30% and a new Integrated Hydrocarbons Tax (IHT) of up to 15% on gross revenues, both adjustable on a project-by-project basis. The surface tax, own-consumption tax, extraction tax, export registration tax, the windfall contribution on extraordinary and exorbitant oil prices and the so-called 'shadow' tax were repealed. Taxpayers engaged in regulated activities are exempted from the high net wealth tax and from the special contributions for science and technology, sports and anti-drug programmes, as well as from the social responsibility commitment under the public procurement law. The Executive may reduce income tax, royalty and IHT rates to preserve the economic balance of a project. The provisions governing royalties and taxes became effective 60 days after publication. Existing joint ventures and production-sharing contracts were granted a 180-day period to adjust to the amended law.

The reform is limited to liquid hydrocarbons and associated gas. Non-associated gas remains governed by the Organic Law on Gaseous Hydrocarbons.

Regulations of the Organic Hydrocarbons Law

The Regulations of the Organic Hydrocarbons Law were published in Extraordinary Official Gazette No. 7.052 on 7 July 2026 (Decree No. 5.381) and entered into force on that date. Among other matters, the Regulations provide that aggregate royalty and IHT rates will be incorporated into the instrument granting the right to carry out primary activities, subject to a favourable opinion from the Ministry of Finance; that the income tax rate may be reduced upon request to maintain the economic balance of a project; and that greenfield projects will be subject to a 34% income tax rate and may apply accelerated depreciation over up to seven years. Upgrading, refining, industrialisation, commercialisation and specialised oil services are subject to the IHT. State-owned companies and their affiliates may act as withholding or collection agents, and late payments of royalties and IHT accrue default interest under the Master Tax Code.

Rules on royalties and Integrated Hydrocarbons Tax

Resolutions No. 024/2026 and No. 002/2026, published in Official Gazette No. 43.410 on 7 July 2026, regulate the determination, filing and payment of royalties and the IHT.

• Primary activities (Resolution 024/2026): Operating companies carrying out primary activities, including the extraction of associated gas, are subject to a royalty of up to 30% on extracted and non-reinjected volumes and to the IHT at a general rate of up to 15% on gross revenues, without deduction of costs or expenses. An aggregate rate (royalty plus IHT) applies by project type: 20% for greenfield projects, 25% for extra-heavy crude, 30% for brownfield projects without production and 35% for brownfield projects with production. The aggregate rate may be up to 5 percentage points lower for offshore projects and for projects that include the construction or expansion of upgrading or refining facilities. Royalties are settled monthly; the IHT is determined and paid in advance monthly, with a final annual settlement.
• Upgrading, refining, industrialisation, commercialisation and specialised oil services (Resolution 002/2026): The IHT applies on accrued gross revenues at 5% for upgrading and refining, 3% for industrialisation, 0% for domestic commercialisation (with a filing obligation) and 5% for specialised oil services. A person is presumed to render specialised oil services when 70% or more of its commercial activity is devoted to the hydrocarbons sector. Gross revenue returns are due within the first ten days of each month and the annual settlement before 30 April of the following year. As a transitional rule, no monthly advances are required during the first year, and the first return and payment are due before 30 April 2027.

New Organic Mining Law

The Organic Mining Law was published in Extraordinary Official Gazette No. 7.020 on 16 April 2026 and entered into force on that date, repealing the 1999 Mining Law and the 2015 law reserving gold and strategic minerals to the State. The new fiscal regime comprises a royalty of up to 13% on gross production, a mining tax of up to 6% on monthly gross production value for legal entities carrying out primary activities, and a tax of up to 5% on the gross value of exports of critical minerals and rare earths. Mining activities are exempt from the high net wealth tax, from the special contributions for science and technology, sports, anti-drug programmes and the protection of social security pensions, and are not subject to state or municipal taxes. A newly created National Superintendency of Mining Activity administers mining taxes and royalties.

Tax exoneration on fuels and gasoline additives

Decree No. 5.207 which entered into force on January 12, 2026 grants an exoneration from VAT, import duties, the customs service fee and other taxes, including the Tax on Major Financial Transactions, on definitive imports and domestic sales of fuels and additives used to improve gasoline. Beneficiaries include the Venezuelan State, state-owned companies, joint venture companies and private companies, subject to the formal requirements set out before the customs office and the tax administration . The benefit is in force for one year.

Amendment of the Tax Information Registry (RIF) rules

Administrative Ruling No. SNAT/2026/00080, published in Official Gazette No. 43.435 on 12 August 2026, replaced the rules governing the Tax Information Registry (RIF). The three-year validity of the RIF certificate and its renewal obligation were eliminated; changes in registered data must now be updated directly through the tax administration's electronic channels within one month; and the RIF number must also be shown in advertising disseminated through digital media.