Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, the information provided below cannot be considered as comprehensive or deemed to constitute specific legal advice.
Yes we tax in Venezuela
New tax reform: No specific information
New tax treaties: No specific information
Local tax advisors
No specific information on the local tax advisors.
Website Tax administration: Click here
The definition of Permanent Establishment follows the wording of article 5 of the OECD Model:
- Dependent agent who habitually concludes contracts in the name of a non-resident company (except if the activity is limited to purchase of goods);
- Fixed place of business, building site, construction, assembly or installation and any related supervisory activity, for a period of 6 months.
Resident and non-resident companies are taxed on their worldwide income (« worldwide principle »).
Entities are considered to be resident for tax purposes in Venezuela if they are incorporated or established in Venezuelan.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 34%.
Note: Banking, finance and insurance companies are taxed under a 40% CIT tax rate.
Non-taxable income includes the following:
- Dividends received from qualifying participations
Non-deductible expenses includes the following:
- Dividends benefiting from the participation exemption
- Interest in excess of the thin-capitalization threshold
Carry forward: Yes 3 years, but some restrictions may apply.
Carry back: No
Companies should submit the tax return annually before the 31st March of the following year (3 months after fiscal year).
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay advance payments during the current taxable year.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Venezuela are the following, subject to the provisions of an applicable double tax treaty, if any.
There is a 34% WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 0% of the gross amount.
Note: in case where revenues have not been taxed at the company level, the dividend derived from these revenues are subject to a 34% WHT.
The general rate of WHT on interest is 34%.
Note: WHT is 4.95% if interest are paid to financial institutions
The general rate of WHT on Royalties is 34%.
The general rate of WHT on management fees is 34%.
The general rate of WHT on technical services is 34%.
Generally, capital gains are taxed under the regular CIT as general income.
Note: capital gains deriving from qualifying participations are exempt under the participation exemption.
Note 2: there could be a 1% final WHT in certain cases.
Standard VAT tax rate is 12%
Zero-rated supplies include, subject to certain conditions:
- exports of goods or services;
Exempt supplies include, subject to certain conditions:
- Certain insurance services
- Training and education
Note: exempt transactions differ from zero-rated transactions in that the input VAT associated with exempt transactions is not deductible.
In case where for a tax period, Input VAT exceeds Output VAT, non-resident companies could not apply for a refund.
No other specific information of VAT in Venezuela.
The general statute of limitation is 6 years starting at the end of the year in which the tax return had to be filed.
The statute of limitation could be extended to 10 years in certain cases.
There is a foreign exchange control in Venezuela. Income and capital could be repatriated subject to conditions.
There are thin capitalization rules in Venezuela. The interest derived from loans between related parties may not be deductible in case where interest exceeds some ratios.
Do not hesitate to share your experience in Venezuela with us in the comments below. Any comments are welcome !