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Regulations on LOCTI Contributions

The Partial Regulations to the Organic Law of Science, Technology, and Innovation in regard to Contributions, Financing and its Result, and Ethics in Research, Technology, and Innovation (hereinafter, the “Regulations”) was published in Official Gazette N° 39.795 of November 8, 2011. The purpose of said Regulations is to establish the guidelines and mechanisms related to the contribution to Science, Technology, and Innovation and the applications of the same, the funding of activities with said contributions, its results, and ethics in research, technology, and innovation.

The most significant aspects of the Regulations are:

  • The declaration and payment of the contribution is to be made during the second quarter following the end of the economic year in which the gross income that constitutes the calculation base for performance of the obligation was generated.
  • Those who wish to be beneficiaries of the resources of said contribution must present for approval the annual plans or projects that they wish to execute during the economic year following that of the presentation of the project. The period of time for presenting said projects is within the third quarter of each year, according to the guidelines established in the call to be opportunely made by the National Fund of Science, Technology, and Innovation (Fondo Nacional de Ciencia, Tecnología e Innovación - “FONACIT”).
  • The projects, plans or programs sought to be benefited from the funds of the contributions must attend to the priority areas defined by FONACIT and to those provided for in the Nation’s National Economic and Social Development plan. In addition, said projects must contain the objectives, activities, relevance of the results and detailed budget for which the resources are intended.
  • The gross income obtained in the economic year following that of the Law of Amendment to the Organic Law of Science, Technology and Innovation, published in Official Gazette N° 39.575 of December 16, 2010, will be the calculation base of the contributions corresponding to said economic year.

Please click here to access said Decree.

 

“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.”