Reference Rate of Exchange – Obligations of PDVSA, its affiliates and Mixed Companies
An Official Notice dated October 24, 2017 was published in Official Gazette No. 41.263 of October 24, 2017. Through said Notice, the Board of Directors of the Venezuelan Central Bank (BCV) indicated that for the determination of the taxable base of the tax obligations derived from the contracting by Petróleos de Venezuela, S.A. (PDVSA), its affiliates, and the mixed companies created in accordance with the Organic Hydrocarbons Law and exclusive providers of specialized supplies in the national territory, which obligations are directly related to the activities of liquid and gaseous hydrocarbons and payment of which is agreed in foreign currency, the applicable rate of exchange will be the DIPRO reference rate of exchange established in article 1 of Exchange Agreement No. 35 (“EA35”) of March 9, 2016, published in Official Gazette No. 40.865 of March 9, 2016.
The same reference rate of exchange will be applicable to the obligations of payment of public prices, rates, commissions, and surcharges contractually agreed in foreign currency as currency of account by the aforesaid legal persons.
The content of the Official Notice published in Official Gazette No. 41.024 of November 4, 2016, relating to the rate of exchange applicable to conversion into foreign currency for purposes of determination of the taxable base of tax obligations deriving from customs transactions processed by the entities mentioned in said Notice is ratified, as well as the content of the Official Notice published in Official Gazette No. 41.128 of April 4, 2017, relating to the rate of exchange applicable to the determination of the taxable base of the internal taxes applicable to liquid and gaseous hydrocarbon primary activities; the DIPRO rate of exchange established in article 1 of EA35 is applicable to said cases.
In order to access the Official Notice, 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.”