Venezuela

Corporate - Withholding taxes

Last reviewed - 20 February 2020

Resident corporations making certain types of payments must withhold taxes. T2 refers to Tariff 2. These include the following:

Type of payment Resident (%) (1) Non-resident (%)
Corporation Individual Corporation Individual
Commissions (2) 5 3 5 34
Dividends (5) 34 34 34 34
Royalties (6) 0 0 T2 on 90 34 on 90
Interest to foreign financial institutions N/A N/A 4.95 N/A
Other interest 5 3 T2 on 95 34 on 95
Professional fees 5 3 T2 on 90 34 on 90
Technical assistance fees (3) 5 3 T2 on 30 34 on 30
Technological service fees (3) 5 3 T2 on 50 34 on 50
Real estate rentals 5 3 5 34
Tangible personal property rentals 5 3 5 34
Contractor and subcontractor services 2 1 T2 34
Film and television exhibition rights 5 3 T2 on 25 34 on 25
Insurance and reinsurance premiums N/A N/A 10 on 30 N/A
Payments to international media organisations 5 3 T2 on 15 N/A
Acquisition of Venezuela commercial funds 5 3 5 34
Payments to non-domiciled international transportation companies (4) N/A N/A T2 on 5 N/A

Notes

  1. WHTs constitute prepayments against final tax liabilities as determined by the income tax return when filed.
  2. Includes commissions earned in instances other than through a dependent relationship (e.g. employer/employee). Commissions are subject to withholdings in the same manner as salaries and wages.
  3. The rates for non-residents are similar to those rates applicable for payments to a non-domiciled corporation not resident in a treaty country and rendering services from abroad with no PE in Venezuela.
  4. Excludes payments exempted under international shipping agreements.
  5. Withholding applicable only on the excess on profits taxed at the corporate level (see Dividend income in the Income determination section).
  6. Domestic income tax withholding rules do not provide for withholding rates in case of resident beneficiaries. Although, in general, no withholding should be applied, a case-by-case review may be necessary.

Tax treaties

There are currently comprehensive treaties for the avoidance of double taxation with the following countries:

Recipient WHT (%)
Dividends Interest Royalties
Non-treaty (1) 34 4.95/T2 on 95 (2) T2 on 90
Treaty:      
Austria 5/15 (3) 4.95/10 (4) 5
Barbados 5/10 (5) 5/15 (6) 10
Belarus 5/15 (7) 5 5/10 (8)
Belgium 5/15 (7) 10 5
Brazil 10/15 (9) 15 15
Canada 10/15 (10) 10 5/10 (11)
China 5/10 (12) 5/10 (13) 10
Cuba 10/15 (10) 10 5
Czech Republic 5/10 (14) 10 12
Denmark 5/15 (7) 5 5/10 (15)
France 0/5/15 (16) 5 5
Germany 5/15 (3) 5 5
Indonesia 10/15 (17) 10 10/20 (18)
Iran 5/10 (14) 5 5
Italy 10 10 7/10 (19)
Korea 5/10 (12) 5/10 (20) 5/10 (21)
Kuwait 5/10 (12) 5 20
Malaysia 5/10 (12) 15 10
Mexico (not in force) 5 4.95/10/15 (22) 10
Netherlands 0/10 (23) 5 5/7/10 (24)
Norway 5/10 (25) 5/15 (6) 9/12 (26)
Portugal 10 10 10/12 (27)
Qatar 5/10 (40) 5 5
Russia 10/15 (28) 5/10 (20) 10/15 (29)
Saudi Arabia 5 5 8
Spain 0/10 (30) 4.95/10 (31) 5
Sweden 5/10 (32) 10 7/10 (33)
Switzerland 0/10 (34) 5 5
Trinidad and Tobago 5/10 (32) 15 10
Turkey 5/10(32) 10 10
United Arab Emirates 5/10 (40) 10 10 (41)
United Kingdom 0/10 (35) 5 5/7 (36)
United States 5/15 (37) 4.95/10 (38) 5/10 (39)
Vietnam 5/10 (40) 10 10

Notes

  1. Domestic rate applicable to payments to non-resident corporations.
  2. The 4.95% rate applies to non-resident financial institutions, and the Tariff 2 on 90% on the gross income in all other cases of non-resident entities.
  3. The 5% rate applies when the beneficial owner is a company that holds at least 15% of the capital of the company paying the dividends, and the 15% rate applies in all other cases.
  4. The 4.95% rate applies to interest paid to banks, and the 10% rate applies in other cases.
  5. The 5% rate applies when the beneficial owner is a company that holds at least 5% of the capital of the company paying the dividends, and the 10% rate applies in all other cases.
  6. The 5% rate applies to interest paid to banks, and the 15% rate applies in other cases.
  7. The 5% rate applies when the beneficial owner is a company that holds at least 25% of the capital of the company paying the dividends, and the 15% rate applies in all other cases.
  8. The 5% rate applies to payments for the use or the right to use copyrights on scientific work, software, trademarks or for the use or the right to use any type of equipment or transportation vehicles. The 10% rate applies in all other cases.
  9. The 10% rate applies when the beneficial owner is a company that holds at least 20% of the capital of the company paying the dividends, and the 15% rate applies in all other cases.
  10. The 10% rate applies when the beneficial owner is a company that holds at least 25% of the capital of the company paying the dividends, and the 15% rate applies in all other cases.
  11. The 5% rate applies to artistic copyright, computer software, patent, and industrial, commercial, and scientific royalties. The 10% rate applies in all other cases.
  12. The 5% rate applies when the beneficial owner is a company that holds at least 10% of the capital of the company paying the dividends, and the 10% rate applies in all other cases.
  13. The 5% rate applies to interest paid to banks, and the 10% rate applies in other cases.
  14. The 5% rate applies when the beneficial owner is a company that holds at least 15% of the capital of the company paying the dividends, and the 10% rate applies in all other cases.
  15. The 10% rate applies to royalties, and the 5% rate applies to technical assistance.
  16. No withholding applies when the beneficial owner is a company that holds at least 10% of the capital of the company paying the dividends. The 5% rate applies in all other cases. The 15% rate applies to a resident of Venezuela who receives from a company that is a resident of France dividends that would give the right to a tax credit (avoir fiscal) if they were received by a resident of France and shall have the right to a payment from the French Treasury of an amount equal to this tax credit (avoir fiscal), subject to deduction of the tax.
  17. The 10% rate applies when the beneficial owner is a company that holds at least 10% of the capital of the company paying the dividends, and the 15% rate applies in all other cases.
  18. The 20% rate applies to royalties, and the 10% rate applies to technical assistance.
  19. The 7% rate applies to literary, artistic, and scientific work copyright royalties, and the 10% rate applies in other cases.
  20. The 5% rate applies to interest in the case of banks, and the 10% rate in other cases.
  21. The 5% rate applies to royalties paid for the use of industrial, commercial, or scientific equipment. The 10% rate applies in other cases.
  22. The 4.95% rate applies to interest in the case of banks and insurance companies. The 10% rate applies to the aforesaid entities when the payment is carried out by banks. The 15% applies in other cases.
  23. No withholding applies when the beneficial owner is a company whose capital is totally or partially divided into shares and controls at least 25% of the capital of the company paying the dividends. The 10% rate applies in other cases.
  24. The 5% rate applies to patent royalties and to industrial, commercial, and scientific equipment royalties, the 7% rate applies to trademark royalties, and the 10% rate applies to literary, artistic, and scientific work copyright royalties.
  25. The 5% rate applies if the beneficial owner is a company that directly controls at least 10% of the company paying the dividends.
  26. The 12% rate applies in the case of royalties, and the 9% rate applies to technical assistance.
  27. The 12% rate applies in the case of royalties, and the 10% rate applies to technical assistance.
  28. The 10% rate applies when the beneficial owner is a company that holds at least 10% of the capital of the company paying the dividends and has invested in this company not less than the equivalent to USD 100,000. The 15% rate applies in all other cases.
  29. The 15% rate applies to royalties, and the 10% rate applies to technical assistance.
  30. No withholding applies when the beneficial owner is a company whose capital is totally or partially divided into shares and controls at least 25% of the capital of the company paying the dividends. The 10% rate applies in other cases.
  31. The 4.95% rate applies to interest in the case of banks. The 10% rate applies in other cases.
  32. The 5% rate applies when the beneficial owner is a company that holds at least 25% of the capital of the company paying the dividends. The 10% rate applies in all other cases.
  33. The 10% rate applies to literary, artistic, and scientific work copyright royalties, and the 7% rate applies in other cases.
  34. No withholding applies when the beneficial owner is a company that controls at least 25% of the capital of the company paying the dividends. The 10% rate applies in other cases.
  35. No withholding applies when the beneficial owner is a company that controls at least 10% of the capital of the company paying the dividends. The 10% rate applies in other cases.
  36. The 5% rate applies to patent and trademark literary, artistic, or scientific work copyrights, including films, and the 7% rate applies in other cases.
  37. The 5% rate applies if the beneficial owner is a company that owns at least 10% of the voting stock of the company paving the dividends. The 15% rate applies in other cases.
  38. The 4.95% rate applies to interest to financial institutions (including insurance companies), and the 10% applies in other cases.
  39. The 5% rate applies to industrial, commercial, and scientific equipment royalties, and the 10% rate applies in other cases.
  40. The 5% rate applies if the beneficial owner is a company that controls at least 10% of the capital of the company paying the dividends. The 10% rate applies in other cases.
  41. The Article also includes technical assistance.

The treaty with Mexico has been published in the Official Gazette and signed by the contracting parties but has not entered into force since diplomatic notes have not been exchanged. There is either conformation on the entry into force of the Treaty with Turkey.

Treaties with additional countries are being negotiated.