Amendment to the Law of Tax on Large Financial Transactions
The Constituent Decree that amended the Decree with the Status, Value, and Force of Law of Tax on Large Financial Transactions (“LTLFT”), issued by the National Constituent Assembly, was published in Official Gazette No. 6.396 Extraordinary of August 21, 2018 (the “Decree”).
The Decree established the partial amendment to article 13 of the LTLFT which will read as follows:
“Article 13: The rate of this tax may be modified by the National Executive and will range from a minimum of 0% to a maximum of 2%.
Up to the time when the National Executive establishes the rate of this tax, said rate is fixed at 1%, as from the time of publication in the Official Gazette of the Bolivarian Republic of Venezuela.”
It may be noted that the consequence of this amendment is the increase in the rate of this tax from 0.75% to 1%, until the National Executive provides otherwise. Also, said rate may be modified up to a maximum of 2%.
The Decree will enter into force on September 1, 2018.
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.”