VALUE OF UNIT FOR ARITHMETCAL CALCULATION OF MAXIMUM AND MINIMUM THRESHOLD (UCAU)

Joint Resolution No. 001/2019 and No. 004/2019 (the “Resolution”), issued by the Ministry of the Popular Power for Planning and the Ministry of the Popular Power for Economy and Finance, respectively, was published in Official Gazette No. 41.567 of January 18, 2019. Said Resolution fixed at Three Hundred and Fifty Sovereign Bolivars (Bs.S. 350.00) the Unit for Arithmetical Calculation of the Maximum and Minimum Threshold (Unidad para el Cálculo Aritmético del Umbral Máximo y Mínimo – “UCAU”).

The Resolution establishes that the UCAU substitutes for the Tax Unit (“T.U.”) for purposes of making arithmetic operations related to public contracting matters and when said T.U. is used as arithmetical calculation factor for the determination of amounts in Bolivars, according to the Constitutional Law against Economic War for Rationality and Uniformity in the Acquisition of Goods, Services, and Public Works.

Finally, the Resolution provides that the value of the UCAU may be periodically updated through a Joint Resolution issued by the Ministries of the Popular Power for Planning and for Economy and Finance, on the basis of objective criteria and when necessary to guarantee to the population the rational use of public resources, optimal levels of financial performance for the protection of the population’s fundamental rights, and the fight against distortions of national economy generated by national and foreign agents for personal purposes.

The resolution will become effective on January 21, 2019.

In order to access the Resolution, please click here.

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