Venezuela

Corporate - Significant developments

Last reviewed - 30 June 2022

Partial Amendment of the Law on Large Financial Transactions Tax

The partial amendment of the Decree with Rank, Value, and Force of Law on the Major Financial Transactions Tax was published in the Extraordinary Official Gazette No. 6,687 dated 25 February 2022. The amendment basically expands the categories of persons subject to tax and provides for a new rate of 3% on certain transactions carried out in foreign currency, cryptocurrencies, or crypto assets other than those issued by the Bolivarian Republic of Venezuela. The amendment entered into force on 27 March 2022.

In addition, Decree N° 4,467 providing for a tax exoneration on charges in connection with transactions involving securities issued or guaranteed by the Republic of Venezuela or the Venezuelan Central Bank and securities traded through Stock Exchange Houses was published in the Extraordinary Official Gazette N° 6,689 dated 25 February 2022. The Decree also provides for other transactions not subject to tax and is in force for one year as of the date of publication.

On the basis of the above-indicated regulatory changes, Administrative Ruling SNAT/2022/000013, published in the Official Gazette N° 42,339 dated 17 March 2022, provides for the designation of special taxpayer as collection agents of the tax for payments received in foreign currency, cryptocurrencies, or crypto assets other than those issued by the Bolivarian Republic of Venezuela without mediation of the financial system. The Ruling entered into force on 28 March 2022.

Amendment of the Master Law on Science, Technology, and Innovation 

The partial amendment of the Decree with Rank, Value, and Force of Master Law of Science, Technology, and Innovation (LOCTI) was published in the Extraordinary Official Gazette N° 6,693 dated 1 April 2022. Main changes with regards to the contribution provided for in the Law include the following:

  • The threshold to contribute for legal bodies carrying out economic activities in Venezuela, which was previously provided for in terms of tax units, has been modified to 150,000 times the exchange rate for the foreign currency of highest value as established by the Venezuela Central Bank in the previous fiscal year.
  • The taxable period and corresponding reporting and payment period have been changed from an annual to a monthly basis. For these purposes, the contribution for a given month must be calculated on the basis of the gross income of the previous monthly period.
  • For purposes of determining the contribution’s taxable basis, the definition of gross income has been modified to include foreign currency exchange gains, interest, dividends, and income on bonuses.

The Law entered into force as of the date of publication in the Official Gazette, and the Executive Branch must dictate the corresponding rules within one year as of the Law enactment.