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Determination and Payment of Obligations in Foreign Currency or Cryptocurrency

Decree No. 3.719, dated December 28, 2018 and issued by the President of the Republic (the “Decree”), was published in Official Gazette No. 6.420 Extraordinary of December 28, 2018 and it issues Decree No. 35 in the frame of the State of Emergency (including Economic Emergency).  The Decree establishes that the taxpayers that carry out operations in the national territory in foreign currency or cryptocurrency (criptodivisa), authorized by the Law, through the Exchange Agreements executed by the National Executive and the Venezuelan Central Bank or through a Presidential Decree, which operations constitute taxable events that generate national taxes, must determine and pay the obligations in foreign currency or cryptocurrency.

 

The determination and payment of the tax obligations in foreign currency or cryptocurrency will be applicable to the tax, its accessory payments, and penalties derived from failure to perform the same. Should it be applicable, the repayment, recovery or refund of the national taxes, for the events established in the Decree, will be made in national currency. To that end, the official rate of exchange in effect on the date of payment of the tax or recording of the customs declaration, as the case may be, will be applicable.  

 

The Tax Administration will issue the rules that establish the formalities for the declaration and payment in foreign currency or cryptocurrency of said obligations. The Superintendence of the Institutions of the Banking Sector (Superintendencia de las Instituciones del Sector Bancario - SUDEBAN) will issue the regulatory provisions of the adaptations to be made by the institutions of the banking sector in order to execute the Decree. 

 

The operations of securities traded on the stock exchange and the exportation of goods and services made by public agencies or entities are exempt from the application of the Decree.

 

The Decree became effective upon publication of the same 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.”