Rules for Accounting Adjustment of Taxpayers excluded from the Adjustment-for-Inflation System
Administrative Ruling SNAT/2015/0021, issued by the Superintendent of the National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria – “SENIAT”), was published in Official Gazette No. 40,744 of September 11, 2015. Said Ruling established the rules for the accounting adjustment of taxpayers that perform banking, financial, insurance and reinsurance activities, excluded from the adjustment-for-inflation system.
The Administrative Ruling establishes the following:
For purposes of the determination of the Income Tax (IT), the taxpayers that perform banking, financial, insurance and reinsurance activities and are excluded from the adjustment-for-inflation system must use the historical values of the Financial Statements as calculation basis.
The taxpayers subject to this Ruling must make the reversal of the accounting entries of the equity readjustment item (Partida de Actualización al Patrimonio) against all non-monetary items and said reversal must coincide with the historical value of the non-monetary items. Likewise, the account denominated Historical Fiscal Exclusions of Equity (Exclusiones Fiscales Históricas al Patrimonio) must be reversed against all accounts of assets, liabilities, and equity that were affected by the adjustment-for-inflation system
As from fiscal year 2015, the taxpayers indicated in this Ruling may not use the adjustment-for-inflation system for purposes of the determination of the IT, nor may they carry forward the net loss for inflation not offset that derives from previous fiscal years.
The taxpayers subject to this Ruling must use the net income of fiscal year 2014 for the purposes of the IT estimated return corresponding to fiscal year 2015.
The rules established in this Ruling are applicable to the fiscal years beginning under the effectiveness of the Decree with the Status, Value and Force of IT Law, published in Official Gazette No. 6,152 Extraordinary of November 18, 2014.
The Administrative Ruling will become effective upon its publication in the Official Gazette of the Bolivarian Republic of Venezuela.
In order to access the Administrative Ruling, please click here.