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Zero percent (0%) rate for the TLFT generated by the effects specified in the Decree

Decree No. 2,232 of February 11, 2016, issued by the President of the Republic was published in Official Gazette No. 40.846 of February 11, 2016. Said Decree established a zero percent (0%) rate of the Tax on Large Financial Transactions (TLFT) generated by the debits specified in the Decree and in the terms specified in the same.

 

The Decree established the following:

 

    1. A  zero percent (0%) rate of the TLFT generated by:

a) Debits in the single accounts of bank institutions and other financial entities held with the Venezuelan Central Bank (VCB), by reason of the application of measures for execution of policies issued by said entity or derived from the execution of transactions with the same. 

b) Debits generated by the purchase, sale, and transfer of the custody of securities issued by decentralized entities, as well as the payment of principal or interest on the same.

c) Debits generated by the payment of transactions inherent in the execution of the exchange policy.  

 

     2. The Ministry of the Popular Power with competence over Banking and Finance matters will be in charge of the execution of the Decree.

 

The Decree became effective as from the date of its publication in the Official Gazette of the Bolivarian Republic of Venezuela.

 

In order to access the Decree, please click here

 

“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”