Venezuela

Special contribution for the protection of pensions 

On May 8, 2024 a Law of Protection of Social Security Pensions published in the Extraordinary Official Gazette N° 6805 was enacted, The Law is aimed at establishing mechanisms, other than the current Social Security contributions, to protect social security pensions.

The most relevant considerations may be summarized as follows:

- Social security pensions are understood to be the monetary benefits for old age, disability and survival provided for in the special law regulating social security.

- The Law provides for a special contribution applicable to private legal bodies and partnerships, including irregular or the facto ones, whether or not domiciled in the Bolivarian Republic of Venezuela, which carry out economic activities in the national territory. 

- The aforesaid contribution will be up to 15% of total payments to workers for salaries and non-salary bonuses.  The applicable rate shall be established by the President of the Republic on an annual basis, according to the type of economic activity.  On May 16, 2024, the rate was established at 9% according to Decree N° 4952.

- The basis for the calculation of the payments made to each worker may not be less than the indexed integral minimum income defined by the National Executive.

- The Law allows the President of the Republic to grant total or partial exemptions on the contribution.

- The contribution is to be declared and paid on a monthly basis. On Administrative Ruling SNAT/2024/00042 published on May 17, the calendar for filing and payment was published. The contribution will be collected and controlled by the National tax authorities (SENIAT).