Exemption from Income Tax Payment
Decree No. 285: Exemption from Income Tax Payment for Venezuelan-sourced net income deriving from primary exploitation of agricultural activities
Decree No. 285, issued by the National Integrated Service of Customs and Tax Administration (SENIAT) was published in Official Gazette No. 40.223 of August 7, 2013. Said Decree establishes an exemption from payment of income tax for the Venezuelan-sourced net income deriving from the primary exploitation of agricultural, forest, livestock, poultry, fishing, aquatic, and fish farming activities of the persons registered as beneficiaries.
The processes subject to said exemption are, in the case of agricultural activities, the harvest, thresh, drying, conservation, and storage processes. As to forest activities, the decortication, sawing, drying, and storage processes; also, the processes of slaughtering or preparation of animals for human consumption, conservation and storage in the case of livestock activities and the conservation and storage of fishing products.
As to the beneficiaries, the activities must be performed by the owner of the farm or by any other person who has obtained an authorization from the owner through an authenticated document. The beneficiaries must use 100% of the amount of the tax that they would have had to pay to make direct investments for the relevant activity in the area of scientific and technological research and development, among others. They must also file an annual affidavit, before March 31, on the investments made and the amount of the exempted tax invested in each fiscal year ended, and perform all the obligations prescribed in the Income Tax Law and its Regulations.
Also, the Decree provides for the manner in which the beneficiaries must record the information relating to the activities performed, as well as the obligation to file an affidavit within fifteen business days following the date on which the investment is made.
The Decree became effective on January 2013 and will remain in effect until December 31, 2015.
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.”