Contribution of Insurance Activity Companies and Risk Management Companies to FONDEN
Decree No. 2.250 of February 25, 2016, issued by the President of the Republic (the “Decree”), was published in Official Gazette No. 40.872 of March 18, 2016. The Decree establishes that:
• The percentage of the annual contribution for Social Development that has to be made by insurance companies, prepaid medicine companies, co-operative associations that carry out insurance activity, and risk management companies, according to the rules governing the insurance activity, will be delivered to Fondo de Desarrollo Nacional Fonden, S.A., (“FONDEN”), pursuant to the provisions of the Decree-Law of the Insurance Activity.
• The Ministry with competence over Finance matters will establish the applicable percentage between 1% and 3% that is to be contributed by the entities to which the Decree refers, as from financial economic year 2016.
• The Superintendence of the Insurance Activity (Superintendencia de la Actividad Aseguradora - “SUDEASEG”) will be in charge of establishing the necessary mechanisms in order to guarantee the effective and timely compliance with the percentage of the contribution that has to be made by the entities subject to the application of the Decree that are mentioned in the same, and of informing FONDEN of the amounts of the contributions made.
• The entities subject to the application of the Decree must transfer to FONDEN the contribution ordered by the Decree in a period of time not exceeding forty-five (45) days after the date of its publication.
The Decree will become effective upon its publication in the Official Gazette.
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.”