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Institutions of the Banking Sector designated as TLFT Collecting Agents

Administrative Ruling SNAT/2016/0004, 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. 40.834 of January 22, 2016. Through said Ruling, the Institutions of the Banking Sector are designated as collecting agents of the Tax on Large Financial Transactions (“TLFT”). 

 

Following are the most significant aspects established in the Ruling:

 

1. The Institutions of the Banking Sector are designated as parties responsible for the TLFT, as collecting agents, for the transactions made by the taxpayers categorized as special taxpayers.

2. The collecting agents must verify the number of endorsements or assignments made in each check generating the taxable event and charge to the account of the taxpayer the amount resulting from multiplying the tax rate by the amount of the check and this result by the number of endorsements or assignments in excess of one, in order to collect the tax on the transactions of assignment of checks, securities, deposits in safekeeping paid in cash, and any other negotiable instrument. For purposes of the application of this tax, the stamp of presentation to the Clearing House affixed to the checks by the banks and financial institutions will not be deemed to be an endorsement.

3. The Institutions of the Banking Sector will carry out a sole collection of the tax, which will occur at the time when the debit is made, when cashier’s checks are acquired through a debit in the account of the acquirer. If the cashier’s check is acquired in cash, the tax will be collected at the time of its issue.

4. The tax must be collected on the same day on which the taxable event subject to such collection occurs.

5. In order to deliver to the Tax Administration the tax collected, the collecting agents, according to the specifications established in the Technical Set of Instructions to be issued by SENIAT to that end, must: i) make a daily transmission upon the closing of their banking activities; ii) file the return through the Fiscal Web Site and pay the amounts collected at the Offices Receivers of National Funds, on the following business day; and iii) present a detailed informative declaration of the collections made every Sunday.

6. The Venezuelan Central Bank (“VCB”) will provide the National Treasury Office and the SENIAT, on each bank business day, with the Credit Notice of the TLFT Concentrating Account, according to the specifications prescribed in the aforesaid Set of Instructions.

7. When an improper collection is made or amounts exceeding those actually collected are delivered to the Tax Administration and the amount is transferred to the account of the National Treasury opened for collection of the tax, the collecting agent may not reverse the transaction. In these cases, the collecting agent must return to the taxpayer the amount improperly collected and afterwards request from SENIAT the refund of said amount, in accordance with the procedure established in the Organic Tax Code (OTC). 

 

 

The Administrative Ruling will become effective as from February 1, 2016.

 

In order to access the Ruling, 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.”