Last modified: 15/01/2025 11:50

Corporate taxation

	Rate
Corporate income tax rate	Tariff No. 2
Branch tax rate	Tariff No. 2
Capital gains tax rate	Tariff No. 2

Tariff No. 2

From	To	Rate	Substract
0 U.T.	2.000 U.T.	15.00%	– 0 –
2.000 U.T.	3.000 U.T.	22.00%	140 U.T.
3.000 U.T.		34.00%	500 U.T.

1. U.T. = Tax Unit and currently values Bs. 9,00 each one.
2. Tariff Nº 3-A: Royalties for the exploitation of mines: 50%.
3. Tariff Nº 3-B: Exploitation of hydrocarbons, refining and transportation, or the purchase or acquisition of hydrocarbons and derivatives for export: 60%.
4. Sale of shares in stock exchanges taxed at 1% on sales.
5. Dividends: 34% under certain conditions.

Residence: Taxpayer is a tax resident in Venezuela if taxpayer is established/located/ domiciled in Venezuela and resident taxpayer is subject to taxes on taxable world income

Basis: Resident companies are taxed on their worldwide income, non resident companies are taxed only on their national source income

Taxable income: The determination will be the result of adding the net enrichment from territorial sources to the net enrichment from extraterritorial sources.

Significant local taxes on income: Municipal tax on economic activities and Contribution to science, technology and innovation

Alternative minimum tax: Venezuela does not present an alternative minimum tax

Taxation of dividends: Any dividend paid by an entity Venezuelan will be taxable depending of whoever pays the dividend: 34% rate will apply when the payer is an entity that carries out activities other than activities related to hydrocarbons (50%) and mining (60%).

Capital gains: Capital gains derived from the sale of shares registered on the stock exchange Venezuelan securities are subject to a tax of 1% on the gross amount. The rest of the capital gains are taxable with other income according to with corporate rates o natural rates. Losses from sales of shares registered on the Venezuelan stock exchange cannot be deducted from other income. In Venezuela there are no local or municipal taxes on the profits of capital. There is a municipal tax on economic activities that is calculated on gross income.

Losses: The Income Tax Return Law establishes that all tax loss is transferable and susceptible to attribution to income obtained in up to three subsequent tax periods to the tax period in which the tax loss occurred, as long as it does not exceed 25% of the enrichment obtained in each period.

Foreign tax relief: Income tax paid abroad on taxable income in Venezuela may be imputed as a tax credit under certain conditions.

Participation exemption: Exemption from participation does not apply unless it is income exempted by the application of tax treaties (agreements to avoid double taxation signed by Venezuela).

Holding-company regime: There is no specific regime for holding companies, the rules corresponding to their income apply.

Tax-based incentives: Certain income is exempt by law or exempted by national executive decrees under certain conditions.

Group relief/fiscal unity: Not applicable (there is no consolidated presentation or filing).

Small company/alternative tax regimes: Not applicable.

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Corporate taxation: compliance

Tax year: Fiscal year is from January 01 till December 31, but taxpayers can choose a different 12-month fiscal year.

Consolidated returns: Not applicable.

Filing and payment: Ordinary taxpayers: filing and payment within three months after closing year. Taxpayers qualified as “special taxpayers” filing and payment according to special calendar dates.

Penalties: Failure to comply with formal duties and with the declaration and payment of the Incom Tax, as well as tax evasion, entails administrative sanctions and criminal sanctions for fraud.

Rulings: Not applicable.

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Taxation of individuals

Tariff No. 1

From	To	Rate	Substract
0 U.T.	1.000 U.T.	6.00%
1.000 U.T.	1.500 U.T.	9.00%	30 U.T.
1.500 U.T.	2.000 U.T.	12.00%	75 U.T.
2.000 U.T.	2.500 U.T.	16.00%	155 U.T.
2.500 U.T.	3.000 U.T.	20.00%	255 U.T.
3.000 U.T.	4.000 U.T.	24.00%	375 U.T.
4.000 U.T.	6.000 U.T.	29.00%	575 U.T.
6.000 U.T.		34.00%	875 U.T.

U.T. is Tax Unit and currently values Bs. 9,00 each one

Residence: Is considered a tax resident in Venezuela if the person remains in the country for more than 183 days during the calendar year, or the calendar year former. Natural persons who have established their residence in the country are also considered tax residents, unless they remain in another country for a consecutive, or non-consecutive, period of 183 days during the calendar year and who have acquired proof of residence in that other country to tax purposes.

Basis: The income tax system in Venezuela is based on the form worldwide, at a progressive rate ranging between 6% and 34%. The retention of Income tax applies to some taxable activities (services).

Taxable income: The tax base is the net income earned in the course of a fiscal year. The taxable profit depends on the income earned in the country, which is subject to tax, as well as the income earned from the abroad by those considered to be residents or other domiciled parties In Venezuela. In this way, Venezuela’s income tax system is based on world income.

Capital gains: Capital gains derived from the sale of shares registered on the stock exchange Venezuelan securities are subject to a 1% tax on the gross amount. The remainder of the capital gains is taxed with other income. according to Rate No. 1. Losses from sales of shares registered on the Venezuelan stock exchange may not be deducted from other income. In Venezuela there are no local or municipal taxes on the profits of capital.

Deductions and allowances: Education of the taxpayer and their descendants (not over 25 years of age) residing in the country; insurance premiums, hospitalization, surgery and maternity; Medical, Dental and Hospitalization Services, interest on loans for the purchase of a primary home; Rental of the home’s permanent seat housing. Income other than salaries allows the deduction of normal and necessary expenses to carry out the activity.

Foreign tax relief: Income tax paid abroad on taxable income in Venezuela may be imputed as a tax credit under certain conditions.

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Taxation of individuals: compliance

Tax year: Fiscal year is from January 01 till December 31

Filing and payment: Ordinary taxpayers: filing and payment within three months after closing year. Taxpayers qualified as “special taxpayers” filing and payment according to special calendar dates.

Penalties: Failure to comply with formal duties and with the declaration and payment of the Incom Tax, as well as tax evasion, entails administrative sanctions and criminal sanctions for fraud.

Rulings: Not applicable.

Withholding taxes

Main withholding tax rates on payments made to non-domiciled legal entities:

Items paid	Taxable Base	Withholding	Items paid	Taxable Base	Withholding
Professional fees	90%	Tariff 2	Technical Assistance	30%	Tariff 2
Commissions	100%	5%	Technological Services	50%	Tariff 2
Interest institutions financial institutions	100%	4,95%	Insurance and reinsurance and reinsurance Execution of	30%	10%
Interest other persons persons non-domiciled domiciled	95%	Tariff 2	Execution of works/provision of services in Venezuela	100%	Tariff 2
Freight for transportation Venezuela-Foreign.	5%	Tariff 2	Leasing of movable movable property	100%	5%
Freight for transportation only in Venezuela	10%	Tariff 2	Advertising, advertising and spaces	100%	5%
Exhibition of films and similar	25%	Tariff 2	Disposal of shares of Venezuelan Venezuelan companies stock exchange	100%	5%
Royalties and participations analogous	90%	Tariff 2

Rate 2 is always applied cumulatively: to the amount paid on each date is added the total of the amounts paid on previous dates, within the same fiscal year.

Branch remittance tax: Under certain conditions, the proportional dividend tax rate of 34% is applicable.

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Anti-avoidance legislation

Transfer pricing: Taxpayers must ensure that transactions carried out with related parties are agreed upon accordance with the arm’s length principle. If it is determined that such transactions do not comply with the principle of full competition then the tax authorities will be able to adjust their taxable enrichment. The determination of transfer prices is established for income, costs and expenses incurred for of exports and imports carried out between parties linked, in accordance with the methods stipulated in the Law of Income Tax. To this end, a exhaustive analysis of all the documentation required by the law in question. In Venezuela, establishes that taxpayers are required to present an annual transfer pricing information statement (PT-99) within six months following the closing of the financial year.

Interest restriction: As part of the transfer pricing regime, thin capitalization rules apply to indebtedness, in the event of qualifying excess indebtedness, the interest derived therefrom would not be deductible.

Controlled foreign companies: There is a general international tax transparency regime, which establishes tax control mechanisms and presumptions of income on investments held in low tax jurisdictions.

Hybrid mismatches: The Venezuelan tax system contains rules on the abuse of legal forms to interpret transactions based on their substance and not on their form when it is detected that they have the purpose of reducing the tax burden; likewise, agreements have been signed to avoid double taxation that additionally include anti-avoidance clauses.

Disclosure requirements: The disclosure obligations that taxpayers have before the Venezuelan tax authority refer mainly to the information returns on related party transactions and transfer pricing studies, as well as the information return on investments in low tax jurisdictions. In the event of a tax audit, the tax administration is assigned by law broad powers to audit and request information from taxpayers and third parties related to their operations.

Exit taxes: There is not applicable in Income Tax. Only there are airport departure taxes for domestic and international flights.

General anti-avoidance rule: Rules refer to Transfer prices regimen and rules refer to international fiscal transparency.

Digital services tax and Other significant anti-avoidance legislation: There is no specific tax on digital services in Venezuela or official initiatives to establish it. However, several current taxes may apply to digital services provided inside and outside Venezuela to beneficiaries in the country, according to the nature of the contracts.

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Value-added tax/Goods and services tax

Type of tax: Any sale of tangible personal property and the provision of services, including import and export, are subject to VAT; unless there is expressly an exemption from the Law or a exoneration by the National Executive. The tax base is the price of goods or services that must not be less than the value of market. Ordinary VAT taxpayers are required to submit monthly statements. The special taxpayers, on a biweekly basis and declarations must be submitted on the dates indicated in the corresponding calendar special.

Standard rate: 16%

Reduced rates: 8%

Registration: The only tax registry for national taxes is the Tax Information Registry (RIF), which is used by almost all public tax or non-tax agencies as identification of entities and individuals.

Filing and payment: General rule is within 15 days after closing month, but special taxpayers should file and pay on a biweekly basis according to published calendar.

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Social security contributions

Payrroll	Employer	Employee
Contributions	Rate (%)	Rate (%)
Healthcare	9-11%	4.00%
Unemployment	1.70%	0.50%
Housing savings	2.00%	1.00%

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 In addition, since May 2024, a special contribution for the protection of social security pensions equivalent to 9% of the salary and non-wage remunerations paid monthly to workers is in effect.

Self-employed

Self-employed persons can make their contributions by paying the total of the employer’s contribution plus the employee’s contribution on their own.

Other taxes

Capital duty: There is a registration fee levied on the incorporation of the capital stock or subsequent increases in the capital stock registered in the commercial registry, which may vary depending on the area where the company is located.

Immovable property taxes: There is a municipal tax on urban real estate that is levied annually on the ownership of real estate by legal entities and individuals according to percentages applied to the cadastral value of the real estate according to the registry kept by each municipality.

Transfer tax: Tax on Large Financial Transactions (IGTF): Tribute destined to the special tax payers on the sums debited from banks and other institutions financial in the country, and for the cancellation of debts without intervention of the financial system national in the transaction, as a result of the payment or other means of extinguishing obligations. It also applies to people natural or legal entities that have not been designated as special taxable subjects when they carry out payments in foreign currency with the intermediation from national financial institutions or payments in foreign currency to special taxable persons without the intermediation of these institutions. The general rate is currently 2% and the special rate applicable to debits in foreign currency accounts held in national financial institutions or payments in foreign currency to special taxable persons without the intermediation of these institutions it has been set at 3%.

Stamp duty: There are rules on court fees, registration fees and tax stamps that establish a long list of amounts or percentages applicable to different types of public document registration operations.

Net wealth/worth tax: Large Wealth Tax (IGP): It is aimed at special taxpayers, both natural persons and legal entities, whose net assets have a value equal to or greater than 150.000.000 Tax Units (1 U.T. = Bs. 9,00). This tax obligation is based on the value of net worth as of September 30 of each year. And the declaration and payment dates are between the following two months according to the calendar of special taxpayers. The tax base is constituted by the total value of the assets and rights that the taxpayer has, this value being determined in accordance with the standards established in this law, and excluding liabilities, the value of charges and encumbrances that fall on such assets, as well as the exempt or exonerated assets and rights.

Inheritance/gift taxes: Inheritance and gift tax is levied on the free transfer of movable and immovable property located within Venezuela, by cause of death (inheritance) or by acts between living persons (gift) and is calculated on the market value of the property transferred at the time of death or gift, with a rate ranging from 25% to 55% depending on the kinship. Some assets are exempt or exonerated under certain conditions. The taxpayer is the one who receives the assets (heirs or donees) but in the case of donations, the donors are also jointly and severally liable for the tax.

Other: 1-Municipal Tax on Economic Activities: Percentage of tax that the taxpayer will have to pay on their income received within the municipality, the rate depends on the type of activity carried out and it will be granted by the jurisdiction of the municipality as established in its ordinances. 2-Contribution to Science, Technology and Innovation: Establishes that legal persons, public or private, domiciled in the country or abroad, who dedicated to business activities within the national territory; will pay annually a percentage of the gross income obtained during the previous financial year (2% casinos and bingo halls, industry and alcohol and tobacco trade; 1% hydrocarbon activities; 0.5% any other economic activity); payable in monthly portions since the first month following the closing year. 3-Contribution to the Sports Fund: Establishes that companies and other organizations dedicated to economic activities for profit in the country must make a contribution of 1% of its profits net or annual accounting profit in case it exceeds of 20,000 tax units, within the 120 days after closing year. 4-Contribution to the National Anti-Drug Fund: Establishes that every legal entity private, consortium and public legal entity with 50 workers or more is subject to payment of 1% of its operating profits of the year to the National Anti-Drug Fund (FONA) within the 60 calendar days following the fiscal year closing date economic.

Tax treaties

AMERICA: Barbados, Brasil, Canadá, Cuba, Estados Unidos de América, Trinidad y Tobago. EUROPE: Alemania, Austria, Bielorrusia, Bélgica, Dinamarca, España, Francia, Italia, Noruega, Países Bajos, Portugal, Reino Unido, República Checa, Rusia, Suecia y Suiza. ASIA: China, Corea, Emiratos Árabes Unidos, Indonesia, Irán, Kuwait, Malasia, Qatar y Vietnam.