Constitutional Law on Creation of the Penalizing Tax Unit
The Constitutional Law on Creation of the Penalizing Tax Unit, enacted by the National Constituent Assembly, was published in Official Gazette No. 41.305 of December 21, 2017. Said Law created a special tax unit called Unidad Tributaria Sancionatoria (Penalizing Tax Unit - “U.T.S.” in Spanish) that will be used exclusively for the determination of the amount of fines and pecuniary penalties the calculation base of which is established in tax units (“U.T.”) in the relevant regulatory instruments.
The value of the U.T.S. will be established on the basis of the variation produced in the Consumer Price Index (“CPI”) of the Metropolitan Area of Caracas in the immediately preceding year, as fixed by the competent authority. The National Executive will determine the value of the U.T.S. and readjust the same within the first days of the month of February of each year, as with the Tax Unit.
The fines and pecuniary penalties prescribed in the legal system with their amount established on the basis of the Tax Unit must be calculated on the basis of the U.T.S.
The Law became effective as from its publication in the Official Gazette of the Bolivarian Republic of Venezuela.
In order to access the Law, 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.”