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IT payment exemption up to 32,000 Tax Units - Natural Persons

Decree No. 3.185 of December 5, 2017, issued by the President of the Republic, was published in Official Gazette No. 41.293 of December 5, 2017 (the “Decree”).  Said Decree exempts from payment of Income Tax (“IT”) the annual net income of a territorial source obtained by the natural persons residing in the country, for up to an amount in bolivars equivalent to 32,000 Tax Units.

 The amount in bolivars exceeding 32,000 Tax Units will have to be declared by the aforementioned natural persons. The Decree also establishes that the exemption will be applied to the annual net income of a territorial source obtained during fiscal year 2017 and that said exemption will not be applicable to the taxpayers who file the final IT return out of the periods of time established in the tax rules. 

The Decree became effective upon its publication in the Official Gazette of the Bolivarian Republic of Venezuela

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.”