Venezuela

Employment expenses

There are no employment expenses considered under the income tax law.

Personal deductions

Education expenses

Educational payments made in Venezuela for the taxpayer and for dependent children under 26 years of age are deductable. The age limit does not apply in cases of special education.

Life insurance premiums

Life, surgery, hospitalisation, and maternity insurance premium payments to entities domiciled in Venezuela are deductable.

Medical expenses

Medical, dental and hospitalisation payments to entities domiciled in Venezuela are deductable.

Mortgage deduction

Rent or interest payments on loans granted for the acquisition or enlargement of the taxpayer's home are deductible. The authorised deduction cannot exceed TU 1,000 for the fiscal year in the case of interest on loans, or TU 800 for the fiscal year in the case of payments associated with the leasing of main or permanent housing.

Standard deductions

Resident taxpayers have the option to claim a special (single) deduction of TU 774. No documentation is necessary. Taxpayers who choose the special deduction cannot claim the itemised personal deductions indicated above.

Personal allowances

Generally, personal allowances take the form of tax credits, i.e. deductions from tax payable. See the Other tax credits and incentives section for more information.

Business deductions

Resident individuals who are not employees can deduct expenses allowed by law, using the same guidelines applicable for corporations (see Deductions in the Corporate tax summary). Taxable income does not include properly documented travel expense reimbursements and individually supported representation expenses. Business deductions from salary income are not allowed.

Losses

Tax losses may, in principle, be carried forward up to three years. During the three-year term, the amount of losses available to carry forward cannot exceed 25% of the tax period’s taxable income. Foreign losses may only be offset against foreign-source income.