Venezuela Income Tax Law 2014

Law of income tax
NICOLAS MADURO MOROS

Republic President
With the supreme commitment and will to achieve the greatest political effectiveness and
revolutionary quality in the construction of Socialism, in the aggrandizement of the country, based
on humanist principles and Bolivarian moral and ethical conditions, by mandate of the people and in
the exercise of the attribution conferred on me by numeral 8 of article 236 of the Constitution of the
Bolivarian Republic of Venezuela and in accordance with the provisions of literal "b", "h" of numeral
1 and literal "c" of numeral 2 of article the Law that Authorizes the President of the Republic to issue
Decrees with the Rank, Value and Force of Law in the Matters delegated to him, in the Council of
Ministers.
DICTA
The next,
DECREE WITH RANK, VALUE AND FORCE OF

LAW OF INCOME TAX
TITLE I
FUNDAMENTAL PROVISIONS
CHAPTER I
About the Tax and its Object
Article 1. Annual, net and available enrichments obtained in money or in kind will cause taxes
according to the rules established in this Decree with Rank, Value and Force of Law.
Unless otherwise provided in this Decree with Rank, Value and Force of Law, every natural or legal
person, resident or domiciled in the Bolivarian Republic of Venezuela, will pay taxes on their income
from any origin, regardless of the cause or source of income. is located within the country or outside
it. Natural or legal persons not resident or not domiciled in the Bolivarian Republic of Venezuela will
be subject to the tax established in this Decree with Rank, Value and Force of Law, provided that
the source or cause of their enrichment is or occurs within the country. , even when they do not
have a permanent establishment or fixed base in the Bolivarian Republic of Venezuela. Natural or
legal persons domiciled or residing abroad that have a permanent establishment or fixed base in
the country will be taxed exclusively on income from a national or foreign source attributable to said
permanent establishment or fixed base.
Article 2. Any natural or legal person, resident or domiciled in the Bolivarian Republic of Venezuela,
as well as natural or legal persons domiciled or residing abroad that have a permanent
establishment or a fixed base in the country, may credit against the tax that in accordance with this
Decree with Rank, Value and Force of Law, they are responsible for paying the income tax that they
have paid abroad for enrichments from extraterritorial sources for which they are obliged to pay tax
in the terms of this Decree with Rank , Value and Force of Law.
For the purposes of the accreditation provided for in this article, income tax is considered to be the
tax on all income or elements of income, including taxes on profits derived from the sale of movable
or immovable property, and taxes on salaries and wages, as well as taxes on capital gains. In case
of doubt, the Tax Administration must determine the nature of the creditable tax.
The amount of the creditable tax, coming from foreign sources referred to in this article, may not
exceed the amount resulting from applying the rates established in Title III of this Decree with Rank,
Value and Force of Law, to the total enrichment. global net of the financial year in question, in the
proportion that the net enrichment from a foreign source represents of the total of said global net
enrichment.
In the case of enrichments taxed with proportional taxes in the terms established in this Decree with
Rank, Value and Force of Law, the amount of the creditable tax may not exceed the income tax that
would have been payable in the Bolivarian Republic of Venezuela for these enrichments.
For the purposes of determining the amount of tax actually paid abroad creditable in the terms
established in this article, the exchange rate in force at the time the tax payment occurs abroad
must be applied, calculated in accordance with the provisions of this article. provided for in the Law
of the Central Bank of Venezuela.
Article 3. The benefits of the Treaties to avoid Double Taxation signed by the Bolivarian Republic of
Venezuela with other countries and that have entered into force, will only be applicable when the
taxpayer demonstrates, at any time, that he is a resident of the country in question and the
provisions of the respective Treaty are complied with. For the purposes of proving residency, the
certificates issued by foreign authorities will be authentic, after official translation and legalization.
Article 4. Net enrichments are the increases in assets that result after subtracting from the gross
income, the costs and deductions allowed in this Decree with Rank, Value and Force of Law,
without prejudice to the net enrichment from territorial sources, of the adjustment for expected
inflation. in this Decree with Rank, Value and Force of Law.
For the purposes of determining net enrichment from a foreign source, the rules of this Decree with
Rank, Value and Force of Law will be applied, determining the income, costs and deductions of
enrichments from territorial sources.
The determination of the tax base for calculating the tax will be the result of adding the net
enrichment from territorial sources to the net enrichment from extraterritorial sources. The
imputation of losses from extraterritorial sources to enrichment or loss from territorial sources will
not be admitted.
Article 5. Enrichments arising from the transfer of the use or enjoyment of property, movable or
immovable, including those derived from royalties and other similar participations and dividends,
those produced by work under a relationship of dependency or by the free exercise of non-
commercial professions, the alienation of real estate and accidental gains, will be considered
available at the time they are paid. Enrichments that are not included in the previous enumeration
will be considered available from the moment the operations that produce them are carried out,
except in credit assignments and discount operations, whose product is recoverable in several
annuities, cases in which it will be considered available. for the transferee the benefit that
proportionally corresponds.
In all cases referred to in this article, account credits will be considered payments, unless proven
otherwise.
Sole Paragraph: Enrichments from credits granted by banks, insurance companies or other credit
institutions and by the taxpayers indicated in paragraphs b, c, d and e of article 7 of this Decree with
Rank, Value and Force of Law and derivatives of the leasing or subletting of movable property, will
be considered available on the basis of the income accrued in the taxable year.
Article 6. Enrichment comes from economic activities carried out in the Bolivarian Republic of
Venezuela, when any of the causes that give rise to it occur within the national territory, whether
those causes refer to the exploitation of the soil or subsoil, to the formation, transfer, change or
transfer of the use or enjoyment of tangible or intangible movable or immovable property or services
provided by persons domiciled, resident or transient in the Bolivarian Republic of Venezuela and
those obtained through technical assistance or technological services used in the country.
The following are income generated in the Bolivarian Republic of Venezuela, among others:
1. Royalties, rights for the use of trademarks and other similar benefits derived from the
exploitation in the Bolivarian Republic of Venezuela of industrial or intellectual property.
2. Enrichments obtained through a permanent establishment or fixed base located in
Venezuelan territory.
3. The compensation for all types of services, credits or any other provision of work or capital
carried out, taken advantage of or used in the Bolivarian Republic of Venezuela.
4. Enrichments derived from the production and distribution of films and similar films and
television.
5. Enrichments from the shipment of consigned merchandise from abroad.
6. The enrichments of non-domiciled insurance and reinsurance companies without
permanent establishment in the country.
7. Enrichments derived from real estate located in the Bolivarian Republic of Venezuela, or
from the rights and encumbrances established on them.
8. Income from transferable securities, issued by companies incorporated or domiciled in the
Bolivarian Republic of Venezuela, or by foreign companies with permanent establishment in
the Bolivarian Republic of Venezuela, money, goods, rights or other transferable assets
invested or located in the Bolivarian Republic of Venezuela.
Likewise, the income derived from said securities is considered to be of territorial source, with the
exception of ADR, GDR, ADS and GDS.
9. The returns of all types of heritage elements located in the Bolivarian Republic of
Venezuela.
Likewise, official activities carried out abroad by officials of national, state or municipal Public
Powers, as well as the activity of representatives of Autonomous Institutes or State Companies, to
whom entrust functions or studies outside the country.
CHAPTER II
Of the Taxpayers and the Persons Subject to this Decree Law
Article 7. They are subject to the tax regime provided for in this Decree with Rank, Value and Force
of Law:
a) Natural persons.
b) Public limited companies and limited liability companies.
c) Partnerships in collective name, limited partnership, communities, as well as any other

partnerships, including irregular or de facto partnerships.
d) Holders of enrichments from hydrocarbon and related activities, such as refining and
transportation, their royalties and those who obtain enrichments derived from the export of minerals,
hydrocarbons or their derivatives.
e) Associations, foundations, corporations and other legal or economic entities not mentioned in the
previous paragraphs.
f) Permanent establishments, centers or fixed bases located in the national territory.
First Paragraph: For the purposes of this Decree with Rank, Value and Force of Law, existing
inheritances will be considered taxpayers assimilated to natural persons; and limited liability
companies, limited by shares and civil and irregular or de facto companies that take the form of a
public limited company, a limited liability company or a limited partnership by shares, will be
considered taxpayers assimilated to public limited companies.
Second Paragraph: In cases of joint account contracts, the member and the associates will be
subject to the regime established in this article; Consequently, for the purposes of the tax, such
taxpayers must compute within their respective annual years the part that corresponds to them in
the periodic results of the account operations.
Third Paragraph: For the purposes of this Decree with Rank, Value and Force of Law, it will be
understood that a taxable person carries out operations in the Bolivarian Republic of Venezuela
through a permanent establishment, when directly or through an agent, employee or representative,
he or she has in Venezuelan territory any premises or fixed place of business, or any activity center
where its activity is carried out, totally or partially, or when it has in the Bolivarian Republic of
Venezuela a management headquarters, branch, offices, factories, workshops, facilities,
warehouses, stores or other establishments; construction, installation or assembly works, when
their duration exceeds six months, agencies or representations authorized to contract in the name
or on behalf of the taxable person, or when they carry out activities in the country related to mines
or hydrocarbons, agricultural or agricultural operations, forestry, livestock or any other place of
extraction of natural resources or carries out professional, artistic activities or has other workplaces
where it carries out all or part of its activity, either by itself or through its employees,
representatives, representatives or another personnel hired for that purpose. An agent who acts
independently is excluded from this definition, unless he or she has the power to conclude contracts
on behalf of the principal. Permanent establishments are also considered to be facilities operated
on a permanent basis by a businessman or professional, centers for purchasing goods or acquiring
services, and real estate operated under lease or under any title.
Fixed bases in the country of natural persons residing abroad through which independent personal
services are provided will be treated as permanent establishments. A fixed base constitutes any
place in which independent personal services of a scientific, literary, artistic, educational or
pedagogical nature, among others, and independent professions are provided.
Article 8. Natural persons and taxpayers similar to them will pay tax on their net enrichments,
based on the rate and other types of taxes provided for in article 50 of this Decree with Rank, Value
and Force of Law, except for those obtained from the activities referred to in article 12.
Article 9. Public limited companies and taxpayers similar to them, which carry out activities other
than those indicated in article 11, will pay tax on all their net enrichments, based on the rate
provided for in article 52 and the tax rates established in its paragraphs.
The regime provided for in this article will be applied to foreign companies or corporations, whatever
form they take.
The legal or economic entities referred to in literal e of article 7 will pay the tax for all their net
enrichments based on the provisions of article 52.
Non-profit foundations and associations will pay based on article 50 of this Decree with Rank, Value
and Force of Law.
Article 10. The companies and communities referred to in literal c of article 7 of this Decree with
Rank, Value and Force of Law, will not be subject to the payment of the tax for their net
enrichments, because the tax will be collected headed by the partners or community members, but
they will be subject to the regime of this Decree with Rank, Value and Force of Law for the
determination of their enrichments, as well as the control and supervision obligations that it
establishes and they will be jointly and severally liable for the payment of the tax. that, due to the
participations, corresponds to pay its partners or community members. The sum of the shares that
the partners or community members must declare will be equal to the amount of the enrichments
obtained in the corresponding year by such companies or communities. The consortia will be
subject to the same regime.
For the purposes of this article, consortia are considered business groups, made up of legal entities
whose purpose is to carry out a specific economic activity jointly.
The legal entities that are members of the consortium and the community members that are
members of the communities referred to in literal c of article 7 of this Decree with Rank, Value and
Force of Law, must designate a representative for tax purposes, who will be in charge of determine
the enrichments or losses of the consortium or community, to inform the Tax Administration of the
way in which the profits or losses were distributed, to identify each of the contracting parties with
their respective Tax Information Registry (RIF) number, to indicate the tax domicile of each of the
members of the consortium or community and comply with the formal duties determined by the
Regulations or the Tax Administration. Said designation must be notified in writing to the Tax
Administration office where the activity of the consortium or community is carried out and to the tax
domicile of the designated representative.
The portions of the net global enrichment obtained by the companies and communities referred to in
this article, derived from mining royalties or similar participations, as well as those coming from the
transfer of such royalties and participations, will be subject to the tax provided for in the literal a of
article 53 of this Decree with Rank, Value and Force of Law.
Article 11. Taxpayers other than natural persons and their equivalents, who are dedicated to the
exploitation of hydrocarbons and related activities, such as refining and transportation, or to the
purchase or acquisition of hydrocarbons and derivatives for exploitation, will be subject to the tax
provided for in literal b of article 53 of this Decree with Rank, Value and Force of Law, for all
enrichments obtained, even if they come from activities other than those of such industries.
Companies that carry out integrated or non-integrated activities of exploration and exploitation of
non-associated gas, processing, transportation, distribution, storage, marketing and export of gas
and its components, or that are exclusively dedicated to gas, are excluded from the regime provided
for in this article. to the refining of hydrocarbons or the improvement of heavy and extra-heavy
crude oils.
Article 12. Natural persons and taxpayers assimilated to them will be subject to the tax provided for
in literal a of article 53 of this Decree with Rank, Value and Force of Law for royalties and other
similar participations from the exploitation of mines and for the enrichments derived from the
transfer of such royalties and participations.
Taxpayers other than natural persons and their equivalents, who are not engaged in the exploitation
of mines, hydrocarbons and related activities, will also be subject to the tax established in literal a of
article 53 of this Decree with Rank, Value and Force of Law, for the enrichments indicated in the
heading of this article.
Article 13. Companies owned by the Nation, the States or the Municipalities will be subject to the
taxes and regulations established in this Decree with the Rank, Value and Force of Law regardless
of the legal form of their constitution, although the Special laws regarding such companies provide
otherwise.
CHAPTER III
Of the Exemptions
Article 14. The following are exempt from tax:
The Venezuelan public entities, the Central Bank of Venezuela and the Economic and Social
Development Bank of Venezuela, as well as the other Autonomous Institutes determined by Law;
1. Agents and other foreign diplomatic officials accredited in the Republic, for the
remuneration they receive from their governments. Also consular agents and other agents
or officials of foreign governments who, with authorization from the national government,
reside in the Bolivarian Republic of Venezuela, for the remuneration they receive from their
governments, provided that there is reciprocity of exemption with the respective country in
favor of Venezuelan agents or officials; and the income obtained by International
Organizations and their officials, in accordance with the provisions of the International
Agreements signed by the Bolivarian Republic of Venezuela;
2. Charitable and social assistance institutions, provided that their enrichments have been
obtained as a means to achieve the aforementioned purposes; that in no case do they
distribute profits, benefits of any nature or any part of their assets to their founders,
associates or members and that they do not make payments as a distribution of profits or
their assets;
3. The workers or their beneficiaries, for the compensation they receive on the occasion of
work, when they are paid in accordance with the Law or employment contracts, for the
interests and the product of the trusts constituted in accordance with the Decree with Rank,
Value and Force of Organic Law of Labor, Men and Women Workers, and for the products
of retirement and pension funds;
4. The insured and their beneficiaries, for the compensation they receive due to insurance
contracts; but those that compensate for losses that have been included in the cost or in the
deductions must be included in the gross income;
5. Pensioners or retirees, for the pensions they receive for retirement, retirement or disability,
even in the event that such pensions are transferred to their heirs, in accordance with the
legislation that regulates them;
6. The donees, heirs and legatees, for the donations, inheritances and legacies they receive;
7. Members of savings banks and cooperatives, provided that they correspond to a general
and single plan established for all the company's workers who belong to the same
professional category of the company in question, as long as they remain in the savings
bank or cooperative. savings, to retirement, retirement and disability funds or plans for the
contributions made by companies or other entities in favor of their workers, as well as for
the fruits or proceeds derived from such funds;
8. Natural persons, for the enrichments arising from the interests generated by fixed-term
deposits, mortgage bonds, savings certificates and any other savings instrument provided
for in the General Law of Banks and other Financial Institutions or in special laws, as well
as the income that they obtain from investments made in publicly offered mutual or
investment funds;
9. Savings and social security institutions, savings, pension and retirement funds for the
enrichments they obtain in the performance of their own activities;
10. The national state companies that are dedicated to the exploitation of hydrocarbons and
related activities, for the extraordinary enrichments coming from the commercial value that
is recognized by their associates to the assets represented by previous studies,
information, knowledge and technical instructions, formulas, data, recordings, films,
specifications and other goods of a similar nature related to the projects that are the object
of the association intended for their development, by virtue of the Association Agreements
that said companies celebrate in accordance with the Organic Law that Reserves the
Industry and the State to the State. Trade in Hydrocarbons or through contracts of national
interest provided for in the Constitution;
11. Enrichments from national public debt bonds and any other type of security issued by the
Republic;
12. Scholarship students for the amounts they receive to cover their living expenses, studies or
training.
Sole Paragraph: The beneficiaries of the exemption provided for in paragraph 3 of this article must
justify to the Tax Administration that they meet the conditions to enjoy the exemption, in the manner
established by the Regulation. In each case, the Tax Administration will grant the qualification and
registration of the corresponding exemption.
TITLE II
ON THE DETERMINATION OF NET ENRICHMENT
CHAPTER I
OF GROSS INCOME
Article 15. For the purposes of determining enrichments exempt from income tax, the rules of this
Decree with Rank, Value and Force of Law will be applied, determining the income, costs and
deductions of taxable enrichments.
The common costs and deductions applicable to income whose income is taxable or exempt will be
distributed proportionally.
Article 16. The overall gross income of taxpayers, referred to in Article 7 of this Decree with Rank,
Value and Force of Law, will be constituted by the amount of sales of goods and services in
general, leases and from any other income, regular or accidental, such as those produced by work
under a relationship of dependency or by the free exercise of non-commercial professions and
those coming from royalties or similar participations, except as otherwise established by Law.
For the purposes of determining the amount of gross income from a foreign source, the average
exchange rate for the fiscal year in the country must be applied, in accordance with the
methodology used by the Central Bank of Venezuela.
First Paragraph: Exports of goods of any kind, whether cultivated, extracted, produced or acquired
to be sold, are also considered sales, unless proven otherwise and in accordance with the rules
established by the Regulations.
Second Paragraph: Income obtained as representation expenses by Managers, Directors,

Administrators or any other employee who, due to the nature of their functions, must make
expenses on behalf of the company, will be excluded for the purposes of determining the overall
gross income. of those, as long as said expenses are individually supported by the respective
receipts and are classifiable as normal and necessary for the activities of the paying company.
Third Paragraph: In cases of real estate sales on credit, the gross income will be constituted by the
amount of the amount received in the taxable year for such concepts.
Fourth Paragraph: Travel expenses obtained as a consequence of the provision of personal

services under a dependency relationship will be excluded for the purposes of determining the
overall gross income referred to in the heading of this article as long as the expense is individually
supported with the respective proof and is normal and necessary.
Enrichments subject to proportional taxes will also be excluded from overall gross income.
Fifth Paragraph: For tax purposes, it will be considered that, in addition to the rights and
obligations of the merged companies, any tax benefit or liability that corresponds to the merged
companies will subsist in the head of the company resulting from the merger.
Article 17. Those coming from the sale of the property that serves as their main residence will not
be included in the gross income of natural persons, provided that the following circumstances occur:
1. That the taxpayer has registered the respective property as their main home with the
Treasury Administration of their jurisdiction within the period and other registration
requirements established by the Regulation.
2. That the taxpayer has invested, within a period of no more than two (2) years, counted from
the sale or within the year preceding it, all or part of the proceeds of the sale in another
property that replaces the good sold. as the main residence and has registered this new
property as established in literal a) of this article.
First Paragraph: In the event that the amount of the new investment is less than the product of the
sale of the main home, only an amount equal to the amount of the investment in the new main
home will no longer be included in the gross income.
Second Paragraph: To enjoy this benefit, the taxpayer must notify the Treasury Administration of
their jurisdiction, which carried out the sale with the intention of replacing it with a new main home.
Third Paragraph: Taxpayers who, for some reason, at the time of the sale have not registered the
property, in accordance with the provisions of paragraph a of this article, must prove, in the opinion
of the Administration, that during the four (4 ) previous years, the sold property was used as their
main home.
Fourth Paragraph: Taxpayers over sixty (60) years of age who sell their main home are exempt
from the obligation to acquire a new home to enjoy the benefit of this article.
Spouses not separated from property will be considered for the purposes of this provision as a
single taxpayer, and therefore it will be enough for one of them to be of the age required in this
paragraph for the conjugal community to enjoy the agreed benefit.
Article 18. The gross income of the insurance companies will be constituted by the amount of the
premiums, the compensation and commissions received from the reinsurers and the rental fees,
interest and other income produced by the assets in which the insurance company has been
invested. capital and reserves.
Article 19. In cases of construction of works that must be carried out in a period greater than one
(1) year, the gross income will be determined in proportion to what was built in each year. The
relationship between the cost applicable to the taxable year and the total cost of such works will
determine the proportion of what was built in the taxable year. Adjustments due to variations in
income will be applied in their entirety to the income balances of future years, starting from the year
in which said adjustments are determined.
If the construction works were started and completed within a period of no more than one (1) year,
which includes part of two (2) taxable years, the taxpayer may choose to declare all of the income in
the year in which they end. constructions or proceed in accordance with the provisions of the
heading of this article.
Article 20. For the purposes of this Decree with Rank, Value and Force of Law, when the debtor
returns an amount greater than that received, the difference between the two will be considered as
interest on the capital, unless the taxpayer demonstrates otherwise.
CHAPTER II
OF COSTS AND GROSS INCOME
Article 21. The gross income from the sale of goods and services in general and any other
economic activity will be determined by subtracting the costs of the sold products and services from
the computable gross income indicated in Chapter I of this Title. provided in the country, unless the
nature of the activities requires the application of other procedures, for which cases this same law
establishes the determination rules.
The gross income from a foreign source will be determined by subtracting the costs attributable to
said income from the gross income from a foreign source.
Article 22. Taxpayers, natural persons, who in accordance with the provisions of the first paragraph
of Article 17 of this Decree with Rank, Value and Force of Law, are only obliged to compute within
their gross income a part of the income derived of the sale of the property that has served as your
main residence, will reduce your costs for these concepts in a proportion equal to that applicable to
the income in accordance with the provisions of the aforementioned paragraph.
Article 23 . For the purposes of article 21 of this Decree with Rank, Value and Force of Law, the
following are considered to have been carried out in the country:
1. The cost of acquiring goods intended to be resold or transformed in the country, as well as
the cost of materials and other goods intended for the production of income.
2. The usual commissions, provided that they are not fixed amounts but normal percentages,
calculated on the price of the merchandise, which are charged exclusively for the
procedures related to the acquisition of goods.
3. The transportation and insurance costs of the assets invested in the production of income.
First Paragraph: The cost of the goods will be that stated in the invoices issued directly from the
seller, provided that the prices are not higher than the normal ones in the market. To be accepted
as proof of cost, the invoices must include the seller's Tax Information Registration (RIF) number,
except in the case of purchases made by the taxpayer abroad, in which case, they must be
accompanied by the corresponding invoice. . Debit notes from subsidiary companies will not
constitute proof of cost when they are not covered by the seller's original documents.
Second Paragraph: In cases of disposal of real estate, the cost will be taken as the sum of the
amount of the property to be incorporated into the taxpayer's assets, plus the amount of the
improvements made, as well as the registration rights without prejudice to the regulations
established on the matter. adjustment for the effects of inflation. This same rule will apply in cases
of liquidation of companies or reduction of share capital, when real estate is transferred.
Third Paragraph: The cost of the urbanized land will be equal to the sum of the cost of the
properties acquired for this purpose, plus the total urbanization costs. To determine the cost of the
plots sold during the year, the cost thus determined will be divided by the number of square meters
corresponding to the total area of the plots intended for sale and the quotient will be multiplied by
the number of meters sold. Adjustments due to variations in urbanization costs will be applied in
their entirety to future years, starting from the year in which said adjustments are determined.
Fourth Paragraph: When shares acquired as dividends in shares are sold, issued by the paying
companies themselves from liquid and collected profits, as well as those from revaluations of
assets, no cost will be attributed to such shares.
Fifth Paragraph: In cases of construction of works that must be carried out in a period greater than
one (1) year, the applicable cost will be that corresponding to the portion of the work constructed by
the contractor in each fiscal year.
If the duration of the construction of the work is less than one year, and is carried out in a period
between two fiscal years, the costs, as well as the income, may be declared in their entirety in the
fiscal year in which the construction is completed. construction.
Sixth Paragraph: The gross income of insurance companies will be determined by subtracting from
the gross income:
1. The amount of compensation paid.

2. The amounts paid for expired policies, annuities and surrenders.
3. The amount of premiums returned in accordance with the contracts, excluding dividends
allocated to policyholders.
4. The amount of premiums paid to reinsurers.
5. The amount of claims expenses.
Paragraph Seven: The common costs and deductions applicable to income whose source is
territorial or extraterritorial will be distributed proportionally to the respective income.
Article 24. In the case of taxpayers who are dedicated to the exploitation of mines, hydrocarbons
and related activities, such as refining and transportation, a reasonable amount will be charged to
the cost to cover the amortization of investments capitalized or that must be capitalized in
accordance with the rules of this Decree with Rank, Value and Force of Law.
The cost of the concessions will only be amortized when they are in production.
Article 25 . The system for calculating the amortization referred to in the previous article will be that
of exhaustion, but in the case of companies that are not operating concessionaires, the planned
investments may be amortized by a reasonable fee. The regulations may establish, through tables,
the bases for determining the applicable depreciation or amortization rates.
In no case will amortization of assets that are not located in the country be accepted.
Article 26. The following are considered capitalizable investments:
1. The cost of the concessions, made up of the acquisition price and related expenses.
Salaries and other indirect expenses that have not been incurred for the purpose of
obtaining the concession are not capitalized;
2. Direct expenses for exploration, topographic surveys and other similar expenses;
3. A reasonable share of the indirect expenses made in the operations of the fields applicable
to the development works in the various phases of the industry; and
4. Any other expenditure that constitutes a permanent investment.
CHAPTER III
OF DEDUCTIONS AND NET ENRICHMENT
Article 27. To obtain global net enrichment, the deductions expressed below will be made from the
gross income, which, unless otherwise provided, must correspond to expenses incurred not
attributable to the cost, normal and necessary, made in the country with the object of producing
enrichment:
1. Salaries, salaries, emoluments, allowances, pensions, subsidies, commissions and other

similar remuneration, for services provided to the taxpayer, as well as expenses for non-
commercial professional services received during the year; as long as the taxpayer has
complied with all the obligations inherent to his status as employer established in the Law.
2. The interest on capital borrowed and invested in the production of income.
3. Taxes paid for economic activities or income-producing assets, with the exception of taxes
authorized by this Decree with Rank, Value and Force of Law. In the cases of consumption
taxes and when, according to the respective laws, the taxpayer cannot transfer it as a tax
nor is it refundable, it will be chargeable by the taxpayer as an element of the cost of the
good or service.
4. The compensation corresponding to workers on the occasion of work, determined in
accordance with the Law or employment contracts.
5. A reasonable amount to cover the depreciation of permanent assets and the amortization of
the cost of other elements invested in the production of income, provided that said assets
are located in the country and such deduction has not been allocated to the cost. For the
calculation of depreciation, related assets of the same probable duration may be grouped
together. The Regulation may establish, through tables, the bases for determining the
applicable depreciation or amortization rates.
6. Losses suffered in the assets that constitute the fixed assets intended for the production of
income, due to a fortuitous event or force majeure, not compensated by insurance or other
compensation, as long as said losses are not attributable to cost.
7. The transfer expenses of new employees, including those of the spouse and minor children,
from the last port of embarkation to the Bolivarian Republic of Venezuela, and those back,
except when they are transferred to a parent, subsidiary or related company.
8. Losses due to bad debts when they meet the following conditions:
a) That the debts come from the business's own operations.
b) That its amount has been taken into account to compute the declared gross income, except in
cases of capital losses lent by credit institutions, or losses from loans granted by companies to their
workers.
c) That have been discharged in the taxable year, due to the insolvency of the debtor and his
guarantors or because their amount does not justify the collection expenses.
9. The reserves that the law requires insurance and capitalization companies to make.
10. The cost of the constructions that taxpayers must carry out in compliance with the Decree
with the Rank, Value and Force of Organic Law of Labor, Men and Women Workers, or
health provisions.
11. The administration and conservation expenses actually paid for the properties leased,
provided that the taxpayer provides in his income tax return the data required for tax control
purposes.
12. The fees or fees corresponding to the leasing of goods destined for the production of
income.
13. Transportation expenses, caused or paid within the taxable year, carried out for the benefit
of the paying taxpayer, with the aim of producing the income.
14. Commissions to intermediaries in the sale of real estate.
15. The rights to exhibit films and the like for cinema or television.
16. Royalties and other similar participations, as well as remunerations, fees and similar
payments for technical assistance or technological services used in the country.
17. Expenses for ordinary repairs of property intended for the production of income.
18. The insurance premiums that cover the risks to which the assets and persons other than
the taxpayer, considered individually, used in the production of income, or intended for sale,
are exposed, and the other risks that the business runs due to those assets. , or by the
action or omission of these people, such as those of fire and related risks, those of civil
liability, those related to personnel on the occasion of work and those that protect said
personnel in accordance with collective labor contracts.
19. Advertising and propaganda expenses incurred or paid within the taxable year, carried out
for the benefit of the paying taxpayer.
20. Research and development expenses actually paid within the taxable year, carried out for
the benefit of the paying taxpayer.
21. Payments made by companies to their directors, managers, administrators or other
employees as reimbursement of representation expenses, provided that said expenses are
individually supported by the respective receipts and are made for the benefit of the paying
company.
22. All other expenses caused or paid, as the case may be, normal and necessary, made in the
country for the purpose of producing the income.
First Paragraph. The deduction of remuneration for personal services provided by the taxpayer, his
or her spouse or minor descendants is not allowed. For this purpose, community members, partners
of companies in collective name, commanders of limited partnerships and partners of civil and
irregular or de facto companies are also considered as taxpayers. Nor is the deduction of
remuneration assigned to the managers or administrators of the aforementioned companies or
communities allowed, when they have participation in the net profits or losses of the company.
Second Paragraph. The total admissible as a deduction for salaries and other similar remuneration
paid to limited partners, directors of public limited companies and taxpayers treated as such, as well
as to their spouses and minor descendants, in no case may exceed fifteen percent (15% ) of the
company's overall gross income. If there is no gross income either, those corresponding to the
immediately preceding year will be taken as reference points and, failing that, those applicable to
similar companies.
Third Paragraph. The Tax Administration may reduce deductions for salaries and other similar
remuneration, if the amount of these compared to those normally paid by similar companies could
be presumed to be a distribution of dividends. The Tax Administration will have the same power
when the provisions established in article 27 of the Decree with the Rank, Value and Force of
Organic Law of Labor, Men and Women Workers are violated, in which case it may reject
disbursements for salaries and other concepts related to the excess of the percentage established
there for the payroll of foreign personnel.
Fourth Paragraph. The administration expenses actually paid for the properties leased may not
exceed ten percent (10%) of the gross income received due to such leases.
Fifth Paragraph. The taxes established in this Decree with Rank, Value and Force of Law, nor
capitalizable investments in accordance with the provisions of article 27 of the Decree with Rank,
Value and Force of Organic Law of Labor, Male and Female Workers, will not be deductible.
Sixth Paragraph. Only the transportation costs of the exported merchandise to the foreign port of
destination will be deductible when, to compute the taxpayer's gross income, the price of the
exported merchandise is taken to be the price prevailing in said foreign port of destination.
Seventh Paragraph. In cases of export of goods manufactured in the country, or provision of

services abroad, from Venezuelan sources, the deduction of normal and necessary expenses
incurred abroad, related and applicable to the aforementioned exports or activities, will be allowed.
such as travel, advertising, office, exhibition and fair expenses, including transportation of the goods
to be exhibited at the latter events, as long as the taxpayer has the corresponding receipts in the
Bolivarian Republic of Venezuela to support your right to deduction.
Eighth Paragraph. The deductions authorized in paragraphs 1 and 14 of this article, paid to any
beneficiary, as well as those authorized in paragraphs 2, 13, 15, 16 and 18 paid to beneficiaries not
domiciled or resident in the country, will be subject to withholding. tax; in accordance with the
regulations established in this regard in this Decree with Rank, Value and Force of Law and in its
regulatory provisions.
Ninth Paragraph . Only provisions for depreciation of properties invested as permanent assets in
the production of income, or leased to company workers, will be deductible.
Tenth Paragraph. Expenses for depreciation and expenses on small planes, airplanes, helicopters
and other similar vessels or aircraft will only be admissible as a deduction or attributable to the cost
up to fifty percent (50%), when the use of such assets does not constitute the object. main part of
the taxpayer's business and without prejudice to the requirement that such expenditures must be
normal, necessary and made in the country.
Eleventh Paragraph. In cases of royalties and other similar participations, paid to beneficiaries
domiciled or with a permanent establishment or fixed base in the country, only the administration
expenses actually paid may be deducted, up to five percent (5%) of the income received and a
reasonable amount to amortize its cost of obtaining.
Twelfth Paragraph. Liberalities made in compliance with purposes of collective utility and social
responsibility of the taxpayer and donations made in favor of the Nation, the States, the
Municipalities and the Autonomous Institutes may also be deducted from the gross income.
The donations must pursue charitable, welfare, religious, cultural, educational, artistic, scientific,
conservation, defense and improvement of the environment, technological, sporting or improvement
objectives of urban or rural workers, whether direct expenses of the taxpayer or contributions. of
this made in favor of institutions or associations that do not pursue profit purposes and are intended
for the fulfillment of the stated purposes.
The deduction provided for in this paragraph will apply only in cases where the beneficiary is
domiciled in the country.
Thirteenth Paragraph. The deduction of the liberalities and donations authorized in the previous
paragraph will not exceed the percentages established below of the net income, calculated before
having deducted them:
a) Ten percent (10%), when the taxpayer's net income does not exceed ten thousand tax units
(10,000 UT) and eight percent (8%), for the portion of net income that exceeds ten thousand tax
units ( 10,000 UT).
b) One percent (1%) of the net income, in all those cases in which the taxpayer is dedicated to
carrying out any of the economic activities provided for in literal d) of article 7 of this Decree with
Rank, Value and Force Of law.
Fourteenth Paragraph. Deduction or imputation to the cost of expenses for technical assistance or
technological services paid to foreign companies will not be allowed when such services are
provided or could be provided in the country at the time of their accrual. For these purposes, the
taxpayer must present to the Tax Administration the documents and other information that
demonstrate the efforts made to achieve the contracting of such services in the country.
Fifteenth Paragraph. The deductions provided for in the twelfth and thirteenth paragraphs of this
article will not be admitted in those cases in which the taxpayer has suffered losses in the year
immediately preceding the one in which the gift or donation was made.
Sixteenth Paragraph. To obtain net enrichment from a foreign source, expenses incurred abroad
will only be admitted when they are normal and necessary for the operation of the taxpayer who is
taxed on their worldwide income, taking into account factors such as the relationship that exists
between sales, services, expenses or gross income and disbursement of the same or similar
nature, of taxpayers who carry out the same or a similar activity in the Bolivarian Republic of
Venezuela. These expenses will be verified with the corresponding documents issued abroad in
accordance with the legal provisions of the respective country, provided that they contain, at least,
the individualization and address of the service provider or the seller of the purchased goods, as
appropriate, the nature or object of the operation and the date and amount thereof. The taxpayer
must present a translation into Spanish of such documents.
Seventeenth Paragraph. To determine the net enrichment of the permanent establishment or fixed
base, the deduction of expenses incurred for the purposes of the transactions of the permanent
establishment or fixed base, duly demonstrated, including management and general administrative
expenses for the same purposes, will be allowed. equally proven, whether they were carried out in
the country or abroad. However, payments made, where applicable, by the permanent
establishment to the company's central office or any of its other branches, subsidiaries,
subsidiaries, headquarters or related companies in general, as royalties, fees, will not be deductible.
, technical assistance or similar payments in exchange for the right to use patents or other rights or
as a commission, for services provided or for efforts made, with the exception of payments made for
reimbursement of actual expenses. In matters of interest, the provisions of Chapter III of Title VII of
this Decree with Rank, Value and Force of Law will apply.
Eighteenth Paragraph . The Regulations of this Decree with Rank, Value and Force of Law will
establish the necessary controls to ensure that the deductions authorized in this article are
effectively justified and respond to expenses incurred.
Nineteenth Paragraph . The deduction of losses due to the destruction of inventory assets or
assets intended for sale will not be allowed; nor that of fixed assets intended for the production of
income, which do not comply with the conditions indicated in the sixth paragraph of this article.
Article 28. Depreciation or amortization installments corresponding to assets revalued by the

taxpayer may not be deducted or attributed to the cost, except when the depreciation or
amortization refers to fixed assets revalued in accordance with what is established in this Decree
with Rank, Value and Force of Law, where applicable.
Article 29 . Taxpayers domiciled in the country who have ships or aircraft that they own or lease
and use them for cabotage or the international transportation of goods involved in their business, on
their own behalf or on behalf of third parties, must be counted as incurred in the country all the
normal and necessary expenses derived from each trip.
Sole Paragraph: It will not be appropriate to reduce the income paid for ordinary repairs carried out
abroad, nor the expenses incurred during the time of the repair when there are facilities in the
country that, in the opinion of the Tax Administration, are suitable. to carry them out.
Article 30. Taxpayers who are dedicated to the exploitation of mines, hydrocarbons and related
activities, who have vessels they own or lease and use them for cabotage or international
transportation, on their own behalf or on behalf of third parties, must compute as incurred in the
country all the normal and necessary expenses of each trip.
Sole Paragraph: For the purposes provided for in this article, the rules established in the sole
paragraph of article 29 of this Decree with Rank, Value and Force of Law will be applied.
Article 31. Net enrichment is considered to be any consideration or utility, regular or accidental,
derived from the provision of personal services under a dependency relationship, regardless of their
salary nature, other than travel expenses and food allowances.
Also considered as net enrichments are the interests derived from loans and other credits granted
by financial institutions incorporated abroad and not domiciled in the country, as well as the shares
taxable with proportional taxes in accordance with the terms of this Decree with Rank, Value and
Force of Law.
Article 32. Without prejudice to the provisions of paragraphs 3, 11 and 20 and the twelfth and
thirteenth paragraphs of article 27, the deductions authorized in this Chapter must correspond to
expenses incurred during the taxable year, when they correspond to income available for the
opportunity in which the operation is carried out.
When it comes to income that is considered available at the time of payment, in accordance with
the provisions of Article 5 of this Decree with Rank, Value and Force of Law, the respective
deductions must correspond to expenses actually paid in the taxable year. , without prejudice to the
reduction of the planned and applicable items authorized in numerals 5 and 6 of article 27 of this
Decree with Rank, Value and Force of Law.
Sole Paragraph: Expenses caused and not paid deducted by the taxpayer must be declared as
income for the following year if the payment has not been made during this year and provided that
they are the deductions provided for in sections 1, 2, 7, 10 , 12, 13, 14, 15,17, 18, 19 and 21 of
article 27 of this Decree with Rank, Value and Force of Law. The amounts deducted in accordance
with the provisions of paragraph 4 of article 27, not paid within the year following the year in which
the worker stops providing his services to the taxpayer due to dissolution of the employment
relationship, will be considered as income of the year in which said service ceases. annual period.
In the cases provided for in this paragraph, the corresponding deduction will be applied to the year
in which the payment is actually made.
Article 33. Losses arising from the sale of shares or participation quotas in the capital stock and in
cases of liquidation or reduction of capital of public limited companies and taxpayers similar to
them, will only be admissible when the following circumstances occur:
a) That the cost of acquiring the shares or capital quotas has not been higher than the listed price
on the Stock Exchange or an amount that is reasonably related to the book value, in the event that
there is no listed price. .
b) That the transferor of the shares or capital quotas has been the owner of such assets for a
consecutive period of no less than two (2) years from the date of the transfer.
c) That the transferor demonstrate to the Tax Administration that the companies whose shares or
capital quotas are involved carried out an economic activity with reasonable capacity during the last
two (2) annual years immediately preceding the one in which the transfer was carried out. produced
losses.
CHAPTER IV
OF THE PRESUMPTIVE INCOME
Article 34. The net enrichments of taxpayers who produce films abroad and similar films or
television will be constituted by twenty-five percent (25%) of their gross income. These income will
be represented by the price of the transfer of the exhibition right and any others obtained in the
country related to the aforementioned activities. The same regime will apply to taxpayers who
distribute the films and similar films to which this article refers to in the country from abroad.
Article 35. The net enrichments of international news agencies will be constituted by fifteen percent
(15%) of their gross income.
The bases provided for in the heading of this article will be applied to determine the total net
enrichments derived from the special transmission abroad of public shows televised from the
Bolivarian Republic of Venezuela, regardless of the domicile of the company that obtains the
income. For these purposes, the sums obtained by the assignees for the direct transmission of the
show or for the transfer of their rights to third parties will be considered as part of the gross income
of the operating companies in the country.
Article 36. The net enrichments of international transportation agencies or companies incorporated
and domiciled abroad or incorporated abroad and domiciled in the Bolivarian Republic of
Venezuela, will be ten percent (10%) of their gross income. These income will be represented by
half of the amount of freight and tickets between the Bolivarian Republic of Venezuela and abroad
and vice versa and by the entire amount accrued for transportation and other related operations
carried out in the Bolivarian Republic of Venezuela.
Article 37. The net enrichments of taxpayers who send consigned merchandise to the country from
abroad will be twenty-five percent (25%) of their gross income. These income will be constituted by
the amount of sales of said merchandise in the Bolivarian Republic of Venezuela.
Article 38. The enrichments of insurance or reinsurance companies not domiciled in the country will
be constituted by thirty percent (30%) of their net income generated in the country, when there is no
tax exemption for similar Venezuelan companies. These will be represented by the amount of your
gross income, less reductions, refunds and cancellations of premiums caused in the country.
Article 39. The net enrichments of non-resident or non-domiciled taxpayers in the Bolivarian
Republic of Venezuela, coming from non-commercial professional activities, will be constituted by
ninety percent (90%) of their gross income, without prejudice to the provisions of Article 41 of this
Article 40. Net enrichments derived from transportation between the Bolivarian Republic of
Venezuela and abroad and vice versa, obtained by virtue of trips not included within the activities
provided for in article 29 and in the First and Second Paragraphs of article 147 of this Decree with
Rank, Value and Force of Law, will be equal to ten percent (10%) of half of the amount of income
generated in the taxable year for freight and tickets.
Article 41. The net enrichments of taxpayers who provide technical assistance or technological
services from abroad to people or communities who use them in the country as an income producer
or transfer them to third parties, whatever the payment method or its name, They will be constituted
by amounts representative of thirty percent (30%) of the gross income obtained from the provision
of technical assistance, and fifty percent (50%) of the gross income obtained from the supply of
technological services.
Article 42. For the purposes of the previous article, technical assistance is understood to be the
provision of instructions, writings, film recordings and other similar instruments of a technical nature,
intended for the preparation of a work or product for sale or the provision of a specific service. for
the same sales purposes. The provision of the reference assistance may include the transfer of
technical knowledge, engineering services, research and project development, advice and
consulting and the provision of production procedures or formulas, data, information and technical
specifications, diagrams, technical plans and instructions, and the provision of basic and detailed
engineering elements, understood as:
1. Engineering Services: The execution and supervision of the assembly, installation and
start-up of machines, equipment and production plants; calibration, inspection, repair and
maintenance of machines and equipment; and carrying out tests and trials, including quality
control.
2. Research and project development: The development and execution of pilot programs;
research and laboratory experiments; exploitation services and technical planning or
programming of production units.
3. Advice and consulting: Processing external purchases, representation; the advice and
instructions provided by technicians, and the provision of technical services for the
administration and management of companies in any of their activities or operations.
Article 43. For the purposes of article 41 of this Decree with Rank, Value and Force of Law,
technological services are understood to be the granting for the use and exploitation of patents for
inventions, models, drawings and industrial designs, improvements or perfection, formulations,
revalidations or instructions and all those technical elements subject to patents.
Article 44. The concepts contained in articles 42 and 43 of this Decree with Rank, Value and Force
of Law are excluded from the income obtained due to teaching activities and all those derived from
services other than those necessary to the preparation of the work or product or for the provision of
the specific service referred to in the heading of article 42 of this Decree with Rank, Value and
Force of Law.
Likewise, investments in fixed assets or in other goods that are not intended for sale, as well as
reimbursements for goods acquired in the outside.
Article 45. In cases of contracts for technical assistance and technological services Services from
abroad, which do not discriminate the portions of income corresponding to each concept, it will be
presumed that twenty-five percent (25%) of all income corresponds to the technical assistance and
seventy-five percent (75%) to technological services.
Article 46. When there is a global or indiscriminate amount of income corresponding to

remunerations or fees for technical assistance and technological services, partly coming from
abroad and partly derived from activities carried out in the Bolivarian Republic of Venezuela, it will
be considered that the income corresponds to sixty percent (60%) to services from abroad and forty
percent (40%) to services performed in the Bolivarian Republic of Venezuela. The income
attributable to the Bolivarian Republic of Venezuela will admit the costs and deductions allowed by
this Decree with Rank, Value and Force of Law.
Article 47. Income from the granting of the use and exploitation of names of factories, businesses,
services, commercial names, emblems, letterheads, symbols, mottos and other distinctives that are
used to identify products, services or economic activities or intended to highlight properties or
characteristics thereof, are susceptible to admitting the costs and deductions permitted by law,
unless they are paid in the form of royalties to beneficiaries not domiciled in the country.
Article 48. The net enrichments from royalties and other similar participations, obtained by
beneficiaries not domiciled in the country, will be constituted by ninety percent (90%) of the amount
obtained for such concepts.
Sole Paragraph: Without prejudice to the provisions of article 41, royalty or analogous participation
is understood to be the amount paid due to the use or enjoyment of patents, trademarks,
copyrights, procedures or rights to explore or exploit resources. natural resources, established in
relation to a unit of production, sale, exploration or exploitation, whatever its name in the contract.
Article 49. The enrichments coming from assets given in trust will be taxed on the heads of the
beneficiaries of the respective trust, but in the event that the mass of trust assets were constituted
as an entity benefiting from such enrichments, it will be considered, for the purposes of this Decree,
Rank, Value and Force of Law, to the trustor as owner thereof, without prejudice to the fact that the
mass of the trust assets is responsible for paying the tax.
TITLE III
OF THE RATES AND THEIR APPLICATION AND THE TAX PROPORTIONAL TO OTHER
ENRICHMENTS
Article 50. The annual net global enrichment, obtained by the taxpayers referred to in Article 8 of
this Decree with Rank, Value and Force of Law, will be taxed, unless otherwise provided, based on
the following rate expressed in units tributaries (UT):
Rate No. 1
1 For the fraction up to 1,000.00 6.00%
2 For the fraction that exceeds 1,000.00 to 1,500.00 9.00%
8 For the fraction that exceeds 6,000.00 34.00%
Sole Paragraph: In the cases of enrichments obtained by natural persons not resident in the
country, the tax will be thirty-four percent (34%).
Article 51. For all purposes of this Decree with Rank, Value and Force of Law, a non-resident
person is understood to be someone whose stay in the country does not extend for more than one
hundred and eighty-three (183) days within one year. calendar and that does not qualify as
domiciled in the Bolivarian Republic of Venezuela, in accordance with the provisions of the Organic
Tax Code.
Sole Paragraph: The persons referred to in the heading of this article are considered residents for
the purposes of this article, when they have remained in the country for a continuous period of more
than one hundred and eighty-three (183) days in the calendar year immediately prior to the fiscal
year to which the tax is to be determined.
Article 52. The annual net global enrichment obtained by the taxpayers referred to in Article 9 of
this Decree with Rank, Value and Force of Law, will be taxed unless otherwise provided, based on
the following Rate expressed in tax units ( UT):
Rate No. 2
For the fraction up to 2,000.00 15%
For the fraction that exceeds 2,000.00 up to 3,000.00 22%
For the fraction that exceeds 3,000.00 34%
First Paragraph: Net enrichments from loans and other credits granted by financial institutions
established abroad and not domiciled in the country, will only be taxed with a proportional tax of four
point ninety-five percent (4.95%).
For the purposes of the provisions of this paragraph, financial institutions will be understood as
those that have been qualified as such by the competent authority of the country of their
incorporation.
Second Paragraph: The annual net enrichments obtained by the insurance and reinsurance
companies referred to in article 38 of this Decree with Rank, Value and Force of Law, will be taxed
with a proportional tax of ten percent (10%).
Article 53. The annual enrichments obtained by the taxpayers referred to in articles 11 and 12 of
this Decree with Rank, Value and Force of Law will be taxed, unless otherwise provided, based on
the following Rate:
Rate No. 3
1. Proportional rate of sixty percent (60%) for the enrichments indicated in article 12.
2. Proportional rate of fifty percent (50%) for the enrichments indicated in article 11.
For the purposes of determining the taxes referred to in the heading of this article, the type of
taxpayer, the activities to which they are dedicated and the origin of the enrichments obtained will
be taken into account.
Article 54. Spouses not separated from assets will be considered as a single taxpayer, except
when the married woman chooses to declare separately the enrichments coming from:
1. Salaries, salaries, emoluments, per diems, representation expenses, pensions, subsidies

and other similar remuneration other than travel expenses, obtained for the provision of
personal services under a dependency relationship; and
2. Fees and stipends that come from the free exercise of non-commercial professions.
Article 55. Net operating losses from Venezuelan sources may be attributed to enrichment from the
same source provided that said enrichments were obtained within the three (3) tax periods following
the one in which the loss occurred and said imputation does not exceed in each period of twenty-
five percent (25%) of the enrichment obtained.
Losses from a foreign source may only be attributed to enrichment from the same source, under the
same terms provided for in the heading of this article.
The Regulations will establish the procedural rules applicable to cases of losses from the fiscal year
and from previous years.
TITLE IV
ON TAX REDUCES AND RELIEFS
CHAPTER I
Of Reductions Due to Activities and Investments
Article 56. A tax reduction of ten percent (10%) of the amount of new investments made in the five
years following the validity of this Decree with Rank, Value and Force of Law is granted to the
holders of enrichments derived from industrial and agro-industrial activities, construction, electricity,
telecommunications, science and technology, and in general, all those activities that under the
mention of industrial represent investment to satisfy the requirements of advanced or cutting-edge
technology, represented in new fixed assets , other than land, intended for the effective increase of
productive capacity or for new companies, as long as they have not been used in other companies.
Holders of enrichments derived from the provision of tourist services, duly registered in the National
Tourist Registry, will enjoy a reduction of seventy-five percent (75%) of the amount of new
investments destined for the construction of hotels, lodgings and inns. , the expansion,
improvements or re-equipment of existing buildings or services, the provision of any tourist service
or the training and qualification of its workers.
In the case of agricultural, livestock, fishing or fish farming activities, the reduction provided for in
this article will be eighty percent (80%) on the value of the new investments made in the area of
influence of the production unit whose purpose be of mutual benefit, both for the unit itself and for
the community where it is inserted. For the purposes of fiscal recognition of communal investments,
they must be qualified prior to their implementation and subsequently verified by the competent
body of the National Executive. The same reduction will be granted to tourist activity for communal
investments, when they are carried out by small and medium-sized industries in the sector.
A tax reduction of ten percent (10%) will be granted in addition to that provided in this article for the
amount of investments in assets, programs and activities aimed at the conservation, defense and
improvement of the environment.
First Paragraph: The discounts provided for in this article will not be granted to taxpayers who
engage in the activities indicated in article 11 of this Decree with Rank, Value and Force of Law.
Second Paragraph: In the event that the investment results in the acquisition, construction or
installation of a fixed asset, the discounts established in this article will only be granted in those
years in which the fixed assets acquired, built or installed for the purposes indicated in this article,
are effectively and directly incorporated into the production of income.
In the other cases established in this Article, the reduction will be granted in the year in which the
investment is actually made.
Third Paragraph: To determine the amount of the investments contracted in this article, the
withdrawals, amortizations and depreciations made in the annual exercise on such assets will be
deducted from the cost of the new fixed assets incorporated into the production of income. .
Withdrawals of fixed assets due to non-fortuitous causes or force majeure that are made by the
taxpayer within four years following the year in which they are incorporated, will give rise to
objections or tax payments for the year in which they are withdrawn, calculated on the base of the
net costs of the assets retired for the year in which they were incorporated into the production of
income.
Fourth Paragraph: For the purposes of this article, deductible investments may not be taken into
account, in accordance with the provisions of numeral 10 of article 27 of this Decree with Rank,
Value and Force of Law.
Article 57. The discounts referred to in the previous article may be carried forward up to the
following three (3) annual years.
Article 58. When, due to advances or payments on account, derived from withholding at source, it
turns out that the taxpayer, taking into account the liquidation from the income tax return, has paid
more than the tax caused in the respective year, he or she will have right to request in their future
statements that said excess be reduced in the tax settlements corresponding to subsequent years,
up to the concurrence of the amount of such excess, all without prejudice to the right to refund.
Within the form for the income declaration referred to in this Decree with Rank, Value and Force of
Law and for the purposes indicated above, the required provisions will be established so that the
taxpayer can make the corresponding request in the same act of his declaration. annual.
CHAPTER II
About Personal Tax Allowances and Reductions
Article 59. Natural persons residing in the country will enjoy the following reliefs:
1. The amount paid to the country's educational institutes, for the education of the taxpayer
and their descendants not older than twenty-five (25) years. This age limit will not apply to
special education cases.
2. What is paid by the taxpayer to companies domiciled in the country for hospitalization,
surgery and maternity insurance premiums.
3. The amount paid for medical, dental and hospitalization services, provided in the country to
the taxpayer and their dependents, referred to in Article 61 of this Decree with Rank, Value
and Force of Law.
4. The amount paid in interest installments in the cases of loans obtained by the taxpayer for
the acquisition of their main home or the amount paid for the rental of the home that serves
as the permanent seat of the home. The authorized deduction may not exceed one
thousand tax units (1,000 UT) per year in the case of interest payments on loans obtained
by the taxpayer for the acquisition of their main home or eight hundred tax units (800 UT)
per year in the case of what was paid for rent of the home that serves as the permanent
seat of the home.
First Paragraph: The deductions provided for in this article will not apply when they have been
deductible as expenses or costs, for the purposes of determining the net enrichment of the
taxpayer.
Second Paragraph: The deductions authorized in this article must correspond to payments made
by the taxpayer within the taxable year and the respective receipts for said payments must be
attached to the annual income declaration. Deductions will not apply to the amounts reimbursable to
the taxpayer by the employer, contractor, insurance company or substitute entities. Furthermore,
when several taxpayers pay for the services referred to in paragraphs 1 and 2 of this article, the
deductions for such concepts will be divided among them. In any case, in order to accept the
deductions, the Tax Information Registration number of the beneficiary of the payment must appear
on the corresponding receipt.
Third Paragraph: For the purposes of enjoying the deductions, all expenses referred to in the
paragraphs of this article, made outside the country, by diplomatic or consular officials of the
Bolivarian Republic of Venezuela, will be considered incurred in the Bolivarian Republic of
Venezuela. Venezuela accredited abroad; those carried out by other officials of the national, state
or municipal public powers and those carried out by the representatives of the autonomous official
institutes and State companies, while they are abroad in functions inherent to their respective
positions.
Article 60. Natural persons residing in the country may choose to apply a single tax relief
equivalent to seven hundred and seventy-four tax units (774 UT). In this case, the reliefs provided
for in the previous article will not be applicable.
Article 61. Natural persons residing in the country will enjoy a tax reduction of ten (10) tax units
(TU) annually. Furthermore, if such taxpayers have dependents, they will enjoy the following tax
reductions:
1. Ten tax units for the spouse not separated from assets.
2. Ten tax units for each direct ascendant or descendant residing in the country. Adult
descendants will not be eligible for this reduction unless they are incapacitated for work, or
are studying and are under twenty-five (25) years of age.
First Paragraph : The reduction granted in paragraph 1) of this article will not apply when the
spouses file separately. In this case, only one of them may request a tax reduction for family
responsibilities.
Second Paragraph: When several taxpayers contribute to the support of some of the people
referred to in paragraph 2 of this article, the tax reductions will be divided among them.
Third Paragraph: The officials indicated in the Third Paragraph of article 59 will enjoy the tax
reductions established in paragraph 2 of this article, even when the ascendants or descendants
under their charge do not reside in the Bolivarian Republic of Venezuela.
Article 62. Unless otherwise provided, the tax reductions granted in this Title will only apply in the
cases of taxpayers domiciled or resident in the country.
TITLE V
OF THE TAX ON INCIDENTAL GAINS AND CAPITAL GAINS
CHAPTER I
Of the Tax on Unintentional Gains
Article 63. Profits obtained from games or bets will be taxed at thirty-four percent (34%).
Article 64. Prizes from lotteries and racetracks will be taxed with a tax of sixteen percent (16%).
Article 65. The payers of the profits referred to in this Chapter must deliver to the taxpayer, along
with their payment, a receipt showing the total amount of the profit and the tax withheld. In the same
act, they will provide the taxpayer with proof of the respective withholding. The responsible payers
of said profits must pay the amount of the withholding at a National Funds Receiving Office on the
next business day to that on which the tax was received.
CHAPTER II
Capital Gains Tax
Article 66. A tax proportional to the dividends originating from the payer's net income that exceeds
his taxable net tax income is created, in the terms established in this Chapter.
For all purposes of this chapter, net income will be considered to be that approved by the
Shareholders' Assembly and based on the financial statements prepared in accordance with the
provisions of article 90 of this Decree with Rank, Value and Force of Law. Banks or financial or
insurance institutions regulated by special laws in the financial and insurance area must also
consider the aforementioned net income as net income. Likewise, net taxable income will be
considered to be that which is subject to the proportional rates and rates established in this Decree
with Rank, Value and Force of Law different from those applicable to dividends in accordance with
the provisions of this Chapter.
Sole Paragraph: The Tax Administration will apply the imputation rules established in this Chapter
and will determine the taxable portion of the distributed dividends, in cases where the company has
not held an Assembly to approve the balance sheet and income statement.
Article 67. Net enrichment from dividends is considered to be the Income received for such title,
paid or credited into account, in money or in kind, originating from non-exempt or exonerated net
income that exceeds the tax amount, that has not been taxed. with the tax established in this
The same treatment will be given to shares issued by the paying company itself as a result of
capital increases.
Sole Paragraph: The share quota corresponding to each share in the profits of public limited
companies and other similar taxpayers, including those resulting from participation quotas in limited
liability companies, is considered a dividend.
Article 68. The surplus of net income to be considered for the purposes of determining the taxable
dividend will be that resulting from subtracting from it the taxable net tax income and the income
derived from dividends received from other companies.
First Paragraph: Dividends received from companies incorporated and domiciled abroad or
incorporated abroad and domiciled in the Bolivarian Republic of Venezuela, will be excluded from
the net income provided for in this article. In this sense, said dividends will be subject to a
proportional tax of thirty-four percent (34%), and the tax paid for this concept outside Venezuelan
territory may be attributed to said result, in accordance with the provisions of article 2. of this
Second Paragraph: Income from a foreign source other than the dividends expressed in the
previous paragraph, which was taken into account in accordance with the article, will be considered
to be part of the net taxable income.
Article 69. For the purposes of the regime provided for here, dividends paid or credited into account
will be allocated in the following order:
1. Firstly, to the net tax income taxed in the year immediately preceding that in which the
payment occurs, which will not be taxed.
2. Secondly, to the dividends received from third parties by the payer in the year immediately
preceding that in which the payment occurs, which were already taxed as such or
originated from the net taxable income taxed on the head of the company that originates
the payment. dividend.
3. Thirdly, to the net income that exceeds the net tax income of the year immediately
preceding that in which the payment occurs, which will be taxed in accordance with the
provisions of this Chapter.
Article 70. Once the profits of the year immediately preceding the payment have been exhausted,
in accordance with the order of imputation indicated in the preceding article, or if there are no profits
in that year, it will be presumed that the dividends distributed will correspond to the profits of the
year closest to the year. immediately preceding the one in which the payment occurs and its
taxability will be determined in the same order of imputation established in the previous article, until
the profits against which the dividend is paid correspond to a year governed by the law that is
modified, if in which they will not be taxable.
Article 71. Companies or communities incorporated abroad and domiciled in the Bolivarian
Republic of Venezuela or incorporated and domiciled abroad that have a permanent establishment
in the country will be obliged to pay, in their capacity as responsible parties, on behalf of their
partners. , shareholders or community members, a tax of thirty-four percent (34%) on their net
enrichment, neither exempt nor exonerated, that exceeds the net enrichment taxed in the year.
This presumed dividend does not apply in cases in which the branch proves, to the satisfaction of
the Tax Administration, that it fully carried out the reinvestment in the country of the difference
between the net taxable tax income and the net income. This reinvestment must be maintained in
the country for a minimum period of five (5) years. The external auditors of the branch must submit
annually, with the income tax return, a certification stating that the utility referred to in this article is
maintained in the Bolivarian Republic of Venezuela.
Such enrichment will be considered as a dividend or participation received by the shareholder,

partner or community member on the closing date of the annual fiscal year of the company or
community.
The Regulations will determine the procedure to follow. This rule is only applicable to the case
provided for in this article.
Article 72. Credits, deposits and advances made by companies to their partners will be considered
a dividend paid, subject to the regime established in this chapter, up to the amount of profits and
reserves in accordance with the approved balance sheet that serves as the basis for the
distribution. of dividends, unless the company has received as consideration interest calculated at a
rate of no less than three (3) percentage points below the bank lending rate, which for this purpose
will be set monthly by the Central Bank of Venezuela and that the debtor partner has paid in cash
the amount of the credit, deposit or advance received, before the closing of the company's fiscal
year. For the purposes of this article, the same order established in article 69 of this Decree with
Rank, Value and Force of Law will be followed.
Loans granted pursuant to the single savings plans referred to in ordinal 8 of article 14 of this
Decree with Rank, Value and Force of Law are excluded from this presumption.
Article 73. The proportional tax levied on the dividend under the terms of this Chapter will be thirty-
four percent (34%) and will be subject to total withholding at the time of payment or credit into the
account.
First Paragraph: In cases of dividends in shares, issued by the paying company to natural or legal
persons, the proportional tax that taxes the dividend in the terms of this Chapter, will be subject to
an advance tax of one (1%) on the total value of the declared dividend, which will be credited to the
amount of the proportional tax payable in the declaration in the terms indicated in this Chapter.
The paying company must require the respective proof of payment of the advance referred to in the
previous paragraph, for the purposes of registering the ownership of the shares in the shareholders'
book kept by said company for this purpose.
Second Paragraph: When dividends come from companies dedicated to the activities provided for
in the heading of article 11 of this Decree with Rank, Value and Force of Law, they will be taxed at
the rate of fifty percent (50%), subject to total withholding. at the source.
Third Paragraph: When dividends come from companies that receive net enrichments derived
from the activities provided for in the sole section of article 12 of this Decree with Rank, Value and
Force of Law, they will be taxed at the rate of sixty percent (60%) , subject to full withholding at
source.
Article 74. In those cases in which the dividends come from companies whose net enrichment has
been subject to taxation by different rates, the respective proration will be made, taking into account
the amount of net tax income taxed with each rate.
Article 75. The provisions of this Chapter will be applicable to taxpayers assimilated to public
limited companies.
Article 76. Income obtained by natural persons, legal entities or communities, from the sale of
shares, whose public offer has been authorized by the National Securities Commission, in the terms
provided in the Capital Market Law, as long as said The sale has been carried out through a Stock
Exchange domiciled in the country, they will be taxed with a proportional tax of one percent (1%),
applicable to the amount of the gross income of the operation.
Sole Paragraph: In the event of losses that may occur in the sale of said shares, the losses caused
may not be deducted from other enrichments of the transferor.
Article 77. The tax provided for in the previous article will be retained by the Stock Exchange in
which the operation is carried out, and it will be deposited in a National Funds Receiver within three
(3) business days after it has been settled and withheld. the corresponding tax.
Article 78. The gross income received for the concepts covered by this Title will be considered as
net enrichments and will be excluded for the purposes of determining the overall net taxable income
in accordance with other Titles of this Decree with Rank, Value and Force. Of law.
TITLE VI
OF THE DECLARATION, SETTLEMENT AND COLLECTION OF THE TAX
CHAPTER I
From the Definitive Declaration
Article 79. Natural persons residing in the country and existing inheritances who obtain an annual
net global enrichment greater than one thousand tax units (1,000 UT) or gross income greater than
one thousand five hundred tax units (1,500 UT) must declare them under oath before an official. ,
office or before the institution that the Tax Administration indicates in the terms and forms
prescribed by the Regulation.
Natural persons who dedicate themselves exclusively to carrying out agricultural, livestock, fishing
or fish farming activities at a primary level and obtain gross income greater than two thousand six
hundred and twenty-five tax units (2,625 UT) will have the same obligation.
Public limited companies and their equivalents, partnerships, communities and other entities
indicated in paragraphs c and e of article 7 of this Decree with Rank, Value and Force of Law, must
submit an annual declaration of their enrichments or losses, regardless of the amount. thereof.
Sole Paragraph: For the purposes of the provisions of this article, agricultural, livestock, fishing or
fish farming activities at a primary level will be understood as those that come from the direct
exploitation of the soil or breeding and those that derive from complementary processing. of the
products obtained by the farmer or breeder, made on the farm itself, except for the production of
alcohols and alcoholic beverages and products derived from fishing activity.
Article 80. Without prejudice to applying the exceptions referred to in article 54 of this Decree with
the Rank, Value and Force of Law, spouses not separated from property must jointly declare their
enrichments, even when they have income from their own property that they manage by separate.
Spouses separated from property by marriage agreement, judgment or judicial declaration will
separately declare all their enrichments.
Article 81. Natural persons not resident in the country must submit an income tax return regardless
of the amount of their enrichments or losses obtained in the Bolivarian Republic of Venezuela, in
accordance with what the Regulations establish.
CHAPTER II
From the Dear Declaration
Article 82. The National Executive may order that certain categories of taxpayers, who within the
year immediately preceding the current fiscal year, have obtained net enrichments exceeding one
thousand five hundred tax units (1,500 UT), present an estimated declaration of their enrichments
corresponding to the taxable year. ongoing, for the purposes of determining and paying advance
taxes, all in accordance with the rules, conditions, deadlines and forms established by the
Regulations.
You may also agree that the tax advance referred to in this article is determined based on the data
from the final declaration of previous years and that payments are made in the manner, conditions
and terms established by the Regulations. In this case, the presentation of the estimated
declaration may be dispensed with.
Likewise, when any taxpayer has obtained, within any of the twelve (12) months of the current
taxable year, extraordinary income that he considers to be of a relevant amount, he may make a
special estimated declaration of the same other than the one referred to in the heading of this
article. , simultaneously practicing self-assessment and payment of advances of the corresponding
taxes, in the form and modalities established by the Regulation.
CHAPTER III
On the Settlement and Collection of the Tax and the Measures that Ensure its Payment
Article 83. The tax established in this Decree with Rank, Value and Force of Law will be settled on
the net and available enrichments obtained during the taxable year, without prejudice to the
provisions of articles 82 and 84 of this Decree with Rank, Value and Force of Law.
Notwithstanding the provisions of the heading of this article, the regulations will indicate the
pertinent cases and rules in which the tax may exceptionally be settled based on enrichments
obtained in periods of less than one (1) year.
Article 84. By Resolution of the Ministry of Finance, taxpayers may be ordered to determine their
enrichments, calculate the corresponding taxes and proceed to cancel them at the National Fund
Receiving Offices. The Resolution will indicate the categories of taxpayers to which the self-
assessment procedure will be applied, the deadlines set for the payment of taxes derived from
estimated or final income statements and the procedural rules that must be met.
Article 85. Payments that must be made in accordance with the provisions of article 86 and the first
and second paragraphs of article 87 of this Decree with Rank, Value and Force of Law, must be
considered as advances made on account of the resulting tax. of the final annual declaration.
Article 86. The Tax Administration, by means of a general ruling, may designate as those
responsible for paying the tax as withholding or collection agents, as well as set withholding and
collection percentages, those who, due to their public functions or by reason of their private
activities intervene in operations taxed with the tax established in this Decree with Rank, Value and
Force of Law or make direct or indirect payments, as well as to the debtors of net enrichments,
gross income or gross income to which this Decree is contracted with Rank, Value and Force of
Law.
Article 87. Taxpayers must determine their enrichments, calculate the corresponding taxes and
proceed to pay them in one go to the National Fund Receiving Offices, in the manner and
opportunity established by the Regulations.
First Paragraph: When it comes to tax advances determined on the basis of the estimated
declarations referred to in Chapter II, the National Executive may agree for their cancellation non-
extendable terms of no more than one (1) year divided into up to twelve (12 ) portions, applicable in
accordance with the rules issued for this purpose.
Second Paragraph: The National Executive may determine that in cases of tax advances, only
seventy-five percent (75%) of the resulting amount is paid, in accordance with the estimated
declaration.
Article 88. In cases of alienation of real estate or rights thereon, for consideration, including the
contributions of such property or rights to the capital of companies of any kind or the deliveries
made by these companies to the partners in case of liquidation or reduction of the share capital or
distribution of profits, an advance tax of zero point five percent (0.5%) will be paid calculated on the
price of the sale, whether it is carried out in cash or on credit. Said advance will be credited to the
amount of the tax resulting from the final declaration of the corresponding year.
First Paragraph: Operations whose amount is less than three thousand tax units (3,000 UT) are
exempt from the obligation provided for in the heading of this article.
The transfers of the main home are also exempt from said obligation, in accordance with the
provisions of article 17 of this Decree with Rank, Value and Force of Law; In which case, the
transferors must present to the respective Judge, Notary or Registrar, prior to granting, the proof of
the Main Housing Registry.
Second Paragraph: The transferor or contributor must self-assess and pay the advance tax
indicated in this article and present before the respective Judge, Notary or Subaltern or Commercial
Registrar, as a prior requirement to granting the respective proof of payment.
Third Paragraph: The self-assessment referred to in the previous paragraph will not require prior
control by the Tax Administration.
Fourth Paragraph: The Judges, Registrars or Notaries must keep a special record of the transfers
referred to in this article and will expressly record in the note that is stamped on the document that
is granted, the number, date and amount of the canceled return. , as well as the Tax Information
Registration number of the transferor and the buyer. Likewise, said officials will send to the Finance
Administration of the tax domicile of the transferor, a monthly list of these transfers.
Fifth Paragraph: In cases of credit sales, the advance tax paid will be allocated to the tax for the
corresponding year in proportion to what was actually received.
Sixth Paragraph: In the event that the sale has not been carried out, prior certification from the
respective Registrar, the corresponding refund will be processed.
Seventh Paragraph: The gross income received for the concepts referred to in this article will be
included for the purposes of determining the global net taxable income in accordance with other
titles of this Decree with Rank, Value and Force of Law.
Eighth Paragraph: Judges, Notaries and Registrars who do not comply with the obligations
imposed on them by this article will be jointly responsible for the payment of the tax that, due to their
non-compliance, the National Treasury stops receiving.
TITLE VII
OF FISCAL CONTROL
CHAPTER I
On Supervision and Fiscal Control Rules
Article 89. For fiscal control purposes, the Tax Administration may require, through Administrative
Ruling, that the beneficiaries of any of the exemptions provided for in Article 14 of this Decree with
Rank, Value and Force of Law, present an annual sworn declaration of the enrichments. exempt,
before the official or office and in the terms and forms determined by it.
In any case, the Tax Administration must periodically verify compliance with the conditions that give
the right to the exemptions established in the aforementioned article 14 of this Decree with Rank,
Value and Force of Law.
Article 90. Taxpayers are obliged to keep in an orderly manner and in accordance with accounting
principles generally accepted in the Bolivarian Republic of Venezuela, the books and records that
this Decree with Rank, Value and Force of Law, its Regulations and the other special Laws
determine, so that they constitute integrated means of control and verification of all their active and
passive assets, movable and immovable, tangible and intangible, related or not to the enrichment
that is declared, to exhibit them to the competent tax officials and to adopt express rules of
accounting that are established for that purpose.
The annotations or entries made in said books and records must be supported by the
corresponding receipts and only from the evidence they deserve will their probative value arise.
Article 91. Issuers of receipts for sales or provision of services carried out in the country must
comply with the billing requirements established by the Tax Administration, including their Tax
Information Registration number. For all purposes provided for in this Decree with Rank, Value and
Force of Law, these receipts will only be accepted as proof of having made the disbursement, when
the Tax Information Registration number of the issuer appears on them and they are issued in
accordance with the billing regulations established by the Tax Administration.
Article 92. Judges, Commercial Registrars or Notaries must keep a special record of the
settlements referred to in this article and will expressly record in the note stamped on the settlement
document, the information determined by the Tax Administration. Likewise, said officials will send to
the Tax Administration of the tax domicile of the liquidated company, a monthly list of such
liquidations, with express indication of the information determined by the Tax Administration,
through Administrative Ruling.
Likewise, the aforementioned officials must notify the Tax Administration of the taxpayer's tax
domicile, of the opening of any bankruptcy procedure, state of arrears or auction, as in cases of
sales of shares that are carried out outside the Stock Exchanges. Values.
Article 93. When in accordance with the Organic Tax Code, the Tax Administration must proceed
to determine ex officio the tax on a presumed basis using Indications and presumptions, the
following will be taken into account, among other elements:
1. Volume of transactions carried out in the taxable year or years.

2. Invested capital.
3. Loans, consumption and other financial charges.
4. Fiscally unjustified asset increases.
5. Performance of similar companies.
6. Profits from other periods.
7. Way of life of the taxpayer, when dealing with natural persons.
Article 94. When classifying the acts or situations that make up the taxable events of the tax
provided for in this Decree with Rank, Value and Force of Law, the Tax Administration, in
accordance with the determination procedure provided for in the Organic Tax Code, may ignore the
constitution of companies, the execution of contracts and, in general, the adoption of legal forms
and procedures, even when they are formally in accordance with the law, carried out with the
fundamental purpose of evading, evading or reducing the effects of the application of the tax. In this
case it will be presumed that the purpose is fundamental, unless proven otherwise.
The decisions that the Administration adopts, in accordance with this provision, will only have tax
implications and will in no way affect the private legal relationships of the intervening parties or third
parties other than the National Treasury.
The facts, acts or legal transactions executed in accordance with the provisions of the heading of
this article will not prevent the application of the evaded or evaded tax rule, nor will they give rise to
the tax advantages that were intended to be obtained through them.
Article 95. The Tax Administration must periodically develop and execute research programs for
those taxpayers, natural or legal persons whose net taxable enrichment in two consecutive years is
less than ten percent (10%) of their gross income.
Article 96. Natural person taxpayers who make payments for fees and stipends caused by services
of people in the free exercise of non-commercial professions, will be obliged to demand the
respective receipts against the payment and to provide the Tax Administration, in the opportunity to
present the respective final annual income statement, the corresponding information on payments
made during the year.
Article 97. Taxpayers who are dedicated to carrying out commercial, industrial, service activities
and holders of enrichments from the exercise of liberal professions, without a relationship of
dependency, must display them in the most visible place in their establishment, office, desk,
consulting room. or clinic, the numbered receipt, dated and sealed by the respective Administration,
of having submitted the income tax return for the year immediately preceding the current fiscal year.
Agricultural and livestock companies must meet the same requirement when they operate as
companies.
Sole Paragraph: Taxpayers who contract with the National Government, the states, municipalities,
Autonomous Institutes and other public entities or State Companies, must present the declarations
corresponding to the last four (4) years, to make the payments from them effective. of said
contracts.
Article 98. The Tax Administration will keep a numbered Tax Information Registry (RIF), in which
natural or legal persons, communities and entities or groups without legal personality, susceptible,
due to their assets or activities, to be subjects or responsible for income tax, as well as withholding
agents.
The Regulation will determine the rules that will regulate everything related to the opening of the
aforementioned registry, who must register in it, the modalities of issuance or expiration of the
registration card or certificate, the people, entities and officials who will be obliged to demand its
registration. exhibition, and in what cases and circumstances, as well as the other provisions
referring to said registry necessary for its correct functioning, effectiveness and operability, as a
means of controlling compliance with the obligations of taxpayers, those responsible for taxes and
tax agents. retention.
Sole Paragraph: By Resolution of the Ministry of Finance, it may be ordered that the number
assigned to those registered in the registry referred to in this article be used for tax control purposes
in other national contributions.
Article 99. Individual taxpayers who change their residence or domicile, as well as legal entities
that change their registered office, main establishment or domicile, are required to notify the
Finance Administration to which they belong, of their new situation, within the twenty (20) days
following the change.
CHAPTER II
Of the International Fiscal Transparency Regime
Article 100. Taxpayers who have investments made directly, indirectly or through an intermediary,
in branches, legal entities, movable or immovable property, shares, bank or investment accounts,
and any form of investment are subject to the regime provided for in this chapter. of participation in
entities with or without legal personality, trusts, joint ventures, investment funds, as well as any
other similar legal figure, created or constituted in accordance with foreign law, located in low tax
jurisdictions.
The provisions of the heading of this article will apply whenever the taxpayer can decide the
moment of distribution or distribution of the returns, profits or dividends derived from low tax
jurisdictions, or when he has control of the administration of the same, either directly, indirectly or
through an intermediary.
First Paragraph: For the purposes of this Chapter, it is presumed, unless proven otherwise, that
the taxpayer has influence in the administration and control of investments in low tax jurisdictions.
Second Paragraph: Investments made by the Bolivarian Republic of Venezuela, the States and
the Municipalities, directly or through their decentralized or deconcentrated entities, are excluded
from the regime established in this Chapter.
Article 101. Taxable income from carrying out business activities in low tax jurisdictions will not be
subject to the regime established in this Chapter, when more than fifty percent (50%) of the total
assets of these investments consist of assets fixed assets affected by the performance of said
activities and are located in such jurisdictions.
However, when income is obtained from the transfer of the temporary use or enjoyment of assets,
dividends, interests, profits from the sale of movable and immovable assets or royalties, which
represent more than twenty percent (20%) of the total income obtained from the taxpayer's
investments in such jurisdictions, the provisions of the previous paragraph will not apply.
Article 102. For the purposes of the provisions of this Chapter, an investment is considered to be
located in a low tax jurisdiction when any of the following situations occur:
1. When the accounts or investments of any kind are in institutions located in said jurisdiction.
2. When you have an address or post office box in that jurisdiction.
3. When the person has its effective or main seat of management or administration or has a
permanent establishment in said jurisdiction.
4. When it is established in said jurisdiction.
5. When you have a physical presence in that jurisdiction.
6. When any type of legal business is celebrated, regulated or perfected in accordance with
the legislation of such jurisdiction.
Article 103. Accounts opened in financial institutions located in low-tax jurisdictions that are owned
by or benefit the taxpayer's spouse or the person with whom he or she lives in common law, his
direct ascendants or descendants, are considered investments of the taxpayer. their representative,
or when the latter appear as representatives or authorized to sign or order transfers.
Article 104. It is presumed, unless proven otherwise, that transfers made or ordered by the
taxpayer to deposit, investment, savings or any other similar accounts opened in financial
institutions located in low tax jurisdictions, are transfers made to accounts whose ownership
corresponds to the same taxpayer.
Article 105. For the purposes of this Chapter, the income derived from the investments referred to
in Article 100 of this Decree with Rank, Value and Force of Law, in the proportion of the direct or
indirect participation that the taxpayer has, as long as they have not been previously taxed. This
provision applies even if income, dividends or profits have not been distributed.
Unless proven otherwise, the amounts received from an investment located in a low tax jurisdiction
will be considered gross income or dividend derived from said Investment.
The taxable income referred to in this article will be determined in each fiscal year.
Article 106. To determine the tax enrichment or loss of the investments referred to in this Chapter,
taxpayers may allocate, proportionally to their direct or indirect participation in them, the costs and
deductions that correspond, provided that they keep available of the Tax Administration the
accounting and present, within the corresponding period, the informative declaration referred to in
Sole Paragraph: For the purposes of this article, it is considered that the taxpayer has at the
disposal of the tax authorities the accounting of their investments located in low tax tax jurisdictions,
when it is provided to the Tax Administration upon request.
Article 107. For the purposes of the previous article, taxpayers must submit, together with their final
income declaration for each year, to the Tax Administration office corresponding to their tax
domicile, an informative declaration on the investments they have made during the year. made or
maintained in low tax jurisdictions, accompanying account statements for deposits, investments,
savings or any other document that supports the investment.
For the purposes of this article, both deposits and withdrawals that correspond to investments made
in low tax jurisdictions must be included in the information return.
The Tax Administration, through general regulations, may require other documents or additional
information that taxpayers must present.
Article 108. The taxpayer will keep, for tax purposes, an account of gross income, dividends or
profits, from investments held in low tax jurisdictions, in each fiscal year.
This account will be added to the taxable income declared in each year on which tax has been paid,
and will be reduced by the income actually received by the taxpayer from the aforementioned
investments, including the amount of withholding that has been applied for the distribution. of said
income.
When the balance of this account is less than the amount of income, dividends or profits actually
received, the taxpayer will pay the tax on the difference applying the corresponding rate.
Article 109. When the taxpayer disposes of shares of an investment located in a low tax
jurisdiction, the gain or loss will be determined following the determination procedure established in
this Decree with Rank, Value and Force of Law for the income obtained in the foreign.
In the case of income derived from the liquidation or reduction of the capital of legal persons,
entities, trusts, joint ventures, investment funds or any other similar legal entity created or
constituted in accordance with foreign law, the taxpayer must determine the taxable income. from a
foreign source, in accordance with the provisions of this Decree with Rank, Value and Force of Law.
Article 110. The taxpayers referred to in this Chapter may apply on equal terms the accreditation
mentioned in Article 2 of this Decree with Rank, Value and Force of Law and, with respect to the tax
that would have been paid in low-tax jurisdictions tax, being subject to the same quantitative and
qualitative limitations and compliance with the other requirements established in this Decree with
Rank, Value and Force of Law.
CHAPTER III
Transfer Pricing
FIRST SECTION
General disposition
Article 111. Taxpayers who enter into operations with related parties are obliged, for tax purposes,
to determine their income, costs and deductions considering for these operations the prices and
amounts of consideration that they would have used with or between independent parties in
comparable operations.
Article 112. The determination of the cost or deductibility of imported goods, services or rights and
the taxability of income derived from export, in operations carried out between related parties, will
be carried out by applying the methodology provided for in this Chapter.
Article 113. When the conditions that are accepted or imposed between related parties in their
commercial or financial relationships differ from those that would be agreed upon by independent
parties, the benefits that would have been obtained by one of the parties if these conditions did not
exist, and that fact have not occurred due to them, they will be included in the profits of this
company and taxed accordingly.
The difference, in value, between the benefit obtained by related parties and the benefit that
independent parties would have obtained in the operations referred to in this article, will be
allocated to the fiscal year in which the operations with related parties were carried out.
Article 114. When, in accordance with the provisions of an international treaty on tax matters
concluded by the Bolivarian Republic of Venezuela, the competent authorities of the country with
which the treaty was concluded, make an adjustment to the prices or amounts of compensation of a
taxpayer resident of that country and provided that said adjustment is allowed according to the rules
of the agreement itself and is accepted by the Venezuelan Tax Administration, the related party
resident in the Bolivarian Republic of Venezuela may present a substitute declaration that reflects
the corresponding setting.
Article 115. For everything not provided for in this Decree with Rank, Value and Force of Law, the
guides on transfer pricing for multinational companies and tax administrations, approved by the
Council of the Organization for Cooperation and Development, will be applicable. Economic
Development in the year 1995, or those that replace them, to the extent that they are consistent
with the provisions of this Decree with the Rank, Value and Force of Law and the treaties signed by
the Bolivarian Republic of Venezuela.
Second section
Related parties
Article 116. For the purposes of this Chapter, a related party will be understood to be the company
that participates directly or indirectly in the management, control or capital of another company, or
when the same people participate directly or indirectly in the management, control or capital of both
companies.
Article 117. The regulations provided for in this Chapter will apply to operations carried out through
an imposed person, who does not qualify as linked to a party resident in the Bolivarian Republic of
Venezuela, through which it operates with another party abroad that qualify as linked.
Article 118. Interest paid directly or indirectly to persons who are considered related parties under
the terms of Section Two of Chapter III of Title VII of this Decree with Rank, Value and Force of
Law, will be deductible only to the extent that the The amount of debts contracted directly or
indirectly with related parties, added to the amount of debts contracted with independent parties,
does not exceed the taxpayer's net assets.
For the purposes of determining whether the amount of the debts exceeds the taxpayer's net worth,
the average annual balance of the taxpayer's net worth will be subtracted from the average annual
balance of the debts that the taxpayer has with independent parties. Said average annual balance
of net worth will be calculated by dividing by two the sum of net worth at the beginning of the year
and at the end of the year (before making the adjustment for inflation for the year and without
considering the net profit or loss for the year), and the The average annual balance of debts will be
calculated by dividing the sum of the balances on the last day of each of the months of the fiscal
year by the number of months of the fiscal year. Interest accrued in said month will not be included
in the balance of the last day of each month.
The amount of deductible interest referred to in the first paragraph of this article will be determined
by subtracting the average annual balance of the taxpayer's debts with independent parts from the
average annual balance of the net worth and the result, if positive, will be divided by the annual
balance of the taxpayer's debts contracted directly or indirectly with persons considered related
parties. If the quotient is equal to or greater than one, the taxpayer may deduct the total amount of
interest paid directly or indirectly to related parties. If the quotient is less than one, the taxpayer may
only deduct the amount resulting from multiplying said quotient by the total amount of interest paid
directly or indirectly to persons considered related parties.
The portion of the amount of debts contracted by the taxpayer, directly or indirectly with related
parties, that exceeds the average annual balance of the taxpayer's net assets will be treated as net
assets for all purposes of this Decree with Rank, Value and Force of Law. .
Although the total amount of the taxpayer's debts does not exceed the amount of said taxpayer's
net worth, a debt contracted by the taxpayer directly or indirectly with related persons will be treated
as net worth for all purposes of this Decree with Rank, Value and Force of Law if it is not contracted
under market conditions. To determine whether a debt was contracted under market conditions, the
following will be considered: (I) the taxpayer's level of indebtedness, (II) the possibility that said
taxpayer could have obtained that loan from an independent party without the intervention of a
related party, (III) the amount of the debt that said taxpayer could have obtained from an
independent party without the intervention of a related party, (IV) the interest rate that said taxpayer
would have obtained from an independent party without the intervention of its related party, and (V)
the terms and conditions of the debt that said taxpayer would have obtained from an independent
party without the intervention of a related party.
Article 119. Unless proven otherwise, it is presumed that operations between natural or legal
persons residing or domiciled in the Bolivarian Republic of Venezuela and natural or legal persons
or entities located or domiciled in low tax jurisdictions will be between related parties.
Third section
Common rules for methods
Article 120. A related transaction will be understood to be that which is carried out between related
parties, in accordance with the provisions of the Second Section of this Chapter.
Article 121. An unrelated transaction will be understood to be that which is carried out between
independent parties, considering as such the taxable persons not mentioned in the Second Section
of this Chapter.
Article 122. An unlinked Transaction is comparable to a linked transaction if at least one of the
following two conditions is met:
1. None of the differences, if any, between the compared transactions or between the
companies carrying out those compared transactions will materially affect the price or
margin in the free market or,
2. Reasonably accurate adjustments can be made to eliminate the material effects of such
differences.
Article 123. To determine the differences referred to in the previous article, the pertinent elements
required according to the method used will be taken into account, considering, among others, the
following elements:
1. The characteristics of the operations.

2. The functions or activities, including the assets used and risks assumed in the operations,
of each of the parties involved in the operation.
3. The contractual terms.
4. The economic circumstances, and
5. Business strategies, including those related to market penetration, permanence and
expansion.
Article 124. A comparison must be made between the characteristics of the goods or services, in
order to determine the degree of similarity of the linked and unlinked transactions.
In the case of transfers of material goods, the physical characteristics of the goods, their quality,
availability and volume of supply, among others, must be considered.
In the case of provision of Services, the comparison must be made based on the characteristics
referring to the nature and duration of the service.
In the case of intangible assets, the characteristics related to the form of transaction (license or
sale), the type of property right (industrial or intellectual), the duration, the degree of protection and
the foreseeable benefits from the use of the assets must be considered. property rights.
Article 125. The comparison of the functions carried out by the parties must be carried out, which
will be based on a functional analysis that will have the objective of identifying and purchasing the
economically significant activities and the responsibilities assumed by the independent parties and
by the related parties. paying attention to the structure and organization of the parts.
Functions such as: design, manufacturing, assembly, research and development, services,
purchasing, distribution, marketing, advertising, transportation, operation and management should
be considered. Likewise, the economic relevance of these functions will be specified in terms of
their frequency, nature and value for the respective parties to the transaction.
The main functions carried out by the party under analysis must be identified, in order to make
adjustments to eliminate any material difference in relation to the functions assumed by any
independent party considered comparable.
Article 126. To identify and compare the functions performed, the assets used must be analyzed,
considering, among others, the type of assets used and their nature, age, market value, situation,
degree of protection of the property rights available, etc. others.
Article 127. The risks assimilated by the parties will be taken into consideration in order to compare
the functions carried out by them. The types of risks to be considered include market risks, such as
fluctuations in the price of goods and final products; risks of loss associated with the investment and
use of property rights, buildings and equipment; risks in the success or failure of research or
development; financial risks such as those caused by currency rate variability; credit risks and
others.
Article 128. The division of responsibilities, risks and benefits between the parties will be carried
out considering, in addition, the contractual clauses defined explicitly and implicitly, the conduct of
the parties in the transaction and the economic principles that generally govern relationships
between independent parties.
Article 129. Economic circumstances will be considered in order to determine the degree of
comparison of the markets in which the independent parties and related parties operate, among
others: the geographical location, the size of the markets, the level of competition in the markets,
the competitive positions relative to buyers and sellers, the position of companies in the production
or distribution cycle, the availability of substitute goods and services, the levels of inputs and
demand in the market, the purchasing power of consumers , the nature and extent of government
regulations of the market, production costs, transportation costs, market level (retail or wholesale),
date and time of transactions and others.
Article 130. Aspects relating to the characteristics of business strategies will be considered:
diversification, risk aversion, assessment of the impact of political changes and existing or planned
labor laws, market penetration or expansion strategies; as well as all those factors that are
supported in the daily running of business.
Article 131. The determination of the value that had been agreed upon by independent parties in
commercial operations of goods or services that were carried out between related parties, will be
carried out transaction by transaction, except in cases in which the separate transactions are
closely linked or are a continuation of one. from another, and cannot be adequately valued
transaction by transaction, and must be evaluated together using the same method.
In those cases in which several transactions have been contracted as a whole, they must be
evaluated separately and, in this way, the transfer price for each element must be obtained, in order
to consider whether the price of the transaction as a whole would be the that independent parties
had agreed upon.
Article 132. To determine the price that would have been used between independent parties, in
comparable transactions, single prices or margins will be used. However, ranges or intervals
resulting from the application of the method or methods may be used when the determination of the
price used by independent parties does not result in an exact price or margin and only produces an
approximation to those comparable operations and circumstances.
Article 133. The range or interval of free competition includes acceptable prices or margins to
consider that the price or margin of a linked transaction is in accordance with the principle of free
competition and are the result of the application of the same method of determining transfer prices
to different comparable transactions, or the application of different transfer pricing methods.
Article 134. Data from previous years may be used in determining the transfer price, in order to
determine, among other circumstances, the origin of the declared losses (if they are part of other
losses generated in similar transactions or are the result of specific economic conditions of previous
years), the life cycle of the product, the relevant businesses, the life cycles of comparable products,
the comparable economic conditions, the contractual clauses and actual conditions that operate
between the parties.
Article 135. The differences between the conditions under which transactions were carried out
between related parties and those carried out between independent parties relating to State
intervention, which affect the compared prices or margins, will be analyzed, such as: price control,
control of interest rates, exchange controls, controls on payments for services and general
management and administrative expenses, controls on royalty payments, subsidies to particular
sectors, anti-dumping obligations or exchange rate policies.
Fourth section
Of the methods
Article 136. The determination of the price agreed upon by independent parties in comparable
operations may be carried out by any of the following internationally accepted methods: the
uncontrolled comparable price method, the resale price method, the added cost method, the profit
division method and the transnational net margin method.
Article 137. The comparable uncontrolled price method consists of comparing the price charged for
the transfer of property or services in a linked transaction, with the price charged for the transfer of
property or services in a comparable unlinked transaction. , in comparable circumstances.
Article 138. The resale price method is based on the price at which a product that has been
purchased from a related party is resold to an independent party. This resale price is reduced by the
profit margin calculated on the resale price, which represents the amount from which the reseller
seeks to cover its operating expenses and obtain an adequate profit taking into account the
functions performed, the assets used. and the risks assumed.
Article 139. The added cost method (cosí plus method) is based on the costs incurred by the
provider of these goods, services or rights, in a transaction linked by the property transferred or the
services provided to a related party, adding to this a profit margin, calculated on the determined
cost, according to the functions performed and market conditions.
Article 140. The profit split method consists of allocating the operating profit obtained by related
parties, in the proportion that would have been assigned with or between independent parties, in
accordance with the following.
1. The overall operating profit will be determined by adding the operating profit obtained by
each of the related persons involved in the operation.
2. The global operating profit will be assigned to each of the related persons considering
elements such as assets, costs and expenses of each of the related parties, with respect to
the operations between said related parties.
If there is a residual benefit, which is obtained by reducing the operating profit assigned to the
related parties involved from the global operating profit, which cannot be assigned to any of the
parties; This residual benefit will be distributed among the same related parties, taking into account,
among other elements, the significant intangibles used by each of them, in the proportion in which it
would have been distributed with or between independent parties in comparable operations.
Article 141. The transaction net margin method consists of determining in transactions between
related parties, the operating profit that independent parties would have obtained in comparable
operations, based on profitability factors that take into account variables such as assets, sales,
costs, expenses or cash flow.
Article 142. The taxpayer must consider the uncontrolled comparable price method as the first
option in order to determine the price or amount of the considerations that have been used with or
between independent parties in transactions comparable to the transfer of goods, services or rights.
carried out between related parties.
The Tax Administration will evaluate whether the method applied by the taxpayer is the most
appropriate according to the characteristics of the transaction and the economic activity carried out.
Fifth Section
Advance transfer pricing agreements
Article 143. Taxpayers of income tax, prior to carrying out the operations, may make a proposal for
the valuation of the operations carried out with related parties.
The proposal must refer to the valuation of one or more transactions individually considered, with
the demonstration that they will be carried out at the prices or amounts that would have been used
by independent parties in comparable operations.
The proposals referred to in the heading of this article may also be formulated by natural persons,
legal entities or entities not resident or domiciled in Venezuelan territory, who plan to operate there
through a permanent establishment or entities with which they are located. linked.
The valuation proposal must be signed by all the related parties that are going to carry out the
operations that are the subject of it.
Article 144. The withdrawal of any of the related parties from the valuation proposal will determine
the completion of the procedure.
Article 145. Taxable persons who intend to formulate a proposal for the valuation of operations
carried out with related parties must submit to the Tax Administration, in advance, the following
documentation:
1. Identification of the people or entities that are going to carry out the operations, to which the
proposal refers, with indication of the name, name or company name, tax address, Tax
Information Registry (RIF) number and country of residence.
2. Brief description of the operations to which the proposal refers.
3. Succinct description of the content of the proposal that is intended to be formulated.
The Tax Administration will have a period of thirty (30) business days to examine the documentation
mentioned in this article and inform the taxable persons of the essential elements of the procedure,
taking into consideration the specific circumstances of the proposal they intend to formulate.
Once thirty (30) business days have elapsed, if the Tax Administration has not yet reported on the
procedure, taxable persons may present the proposal.
Article 146. Taxable persons, in the proposal relating to the valuation of operations carried out
between related parties, must provide the following documentation:
Description, from a technical, legal, economic and financial point of view, of the operations to which
the proposal refers, as well as a description of the risks and functions assumed by each of them.
1. Description of the proposed valuation method, highlighting the economic circumstances that
must be understood as basic in order to apply it. The fundamental assumptions of the
valuation method will be considered included among these economic circumstances.
2. Indication of the currency in which the operations referred to in the proposal will be agreed.
3. Justification of the proposed valuation method.
4. Value or range of values that are derived from the application of the valuation method.
5. Identification of the companies that operate in the same markets and the prices that they
apply to operations comparable to those that are the subject of the proposal, carried out
between independent parties, as well as an indication of the adjustments made.
6. Existence of valuation proposals made by the taxpayer before another department of the
Tax Administration, or of valuation proposals estimated or in progress made by its related
party abroad before Tax Administrations of other States.
7. Identification of other operations carried out between related entities that will not be affected
by the valuation proposal.
8. Any other information that may be required by the Tax Administration.
Article 147. Taxable persons may, at any time during the procedure prior to the decision, present
the allegations and provide the documents they deem relevant, as well as propose the taking of
evidence.
Article 148. The Tax Administration may carry out the reviews and carry out the tests it deems
necessary, and must inform the taxable persons about the results thereof.
Article 149. Once the proposal presented by the taxpayers has been analyzed, for the valuation of
operations carried out between related parties, the Tax Administration may:
1. Approve the proposal made by the taxpayers.

2. Approve another alternative proposal formulated by the taxpayers in the course of the
procedure.
3. Reject the proposal made by the taxpayers.
Article 150. In the event of approval of the proposal formulated in paragraphs a and b, of the
previous article, an Advance Agreement on Transfer Pricing for the valuation of operations carried
out between related parties will be considered established between the Tax Administration and the
taxpayer.
In said agreement, the use of a methodology other than that provided for in this Decree with Rank,
Value and Force of Law may be agreed, as long as it involves internationally accepted methods.
Article 151. The document approving the proposal for the valuation of operations carried out with
related parties will contain at least:
1. Place and date of its formalization.

2. Identification of the taxable persons and related parties to which the proposal refers.
3. Description of the operations to which the proposal refers.
4. Essential elements of the valuation method that are derived from it and the basic economic
circumstances, in order of their application, highlighting the fundamental assumptions.
5. Period of time to which the proposal refers.
Article 152. The rejection of the proposal will also be reflected in a document that will contain at
least the following information:
1. Place and date of its formulation.

2. Identification of the taxable persons to whom the proposal refers.
3. Reasons or reasons why the Tax Administration understands that the proposal should be
rejected.
Article 153. The Tax Administration will have a period of twelve (12) months, counted from the date
on which the request has been submitted, to decide on the proposal relating to the valuation of
operations carried out between related parties, after said period, if The Tax Administration has not
responded to the proposal, it will be deemed rejected.
Article 154. The Tax Administration and taxable persons must apply what results from the
approved proposal. In this sense, they will value the operations that are the subject of the proposal
at the values at which they have been carried out between related parties, only when said values
are a consequence of the correct application of the proposal.
Article 155. The Tax Administration will unilaterally annul the signed agreements, from the date of
their signing, in case of fraud or falsity of the information provided during their negotiation.
In the event of non-compliance with the terms and conditions provided for in the agreement, the Tax
Administration will unilaterally annul it from the date on which such non-compliance has been
verified.
Article 156. Advance agreements on transfer pricing may derive from an agreement with the
competent authorities of a country with which the Bolivarian Republic of Venezuela has signed a
treaty for double taxation.
Article 157. Taxpayers must present, together with the final Income Tax declaration, a report
related to the application of the approved proposal, with the following content:
1. Operations carried out in the tax period to which the declaration refers, to which the
approved proposal has been applicable.
2. Results statement, indicating how the methodology was carried out.
3. Description, if any, of the significant variations in the economic circumstances that must be
understood as basic for the application of the valuation method referred to in the approved
proposal.
Article 158. The valuation proposal may be modified to adapt it to the new economic
circumstances, in the event of significant variation thereof. In this case, the taxpayers must submit
the modification request where the new terms of the agreement are proposed, attaching to it all
documentation that supports the proposal.
The modification request must be signed by all the people or entities affected by the proposal.
Article 159. The withdrawal of any of the persons or entities affected by the proposal will determine
the completion of the modification procedure.
Article 160. The Tax Administration, once the modification request and the documentation
presented have been examined, after hearing the taxpayers, who will have a period of fifteen (15)
days for this purpose, may decide:
1. Approve the modification formulated by the taxpayers.

2. Approve another alternative modification formulated by the taxpayers, in the course of the
procedure.
3. Reject the modification made by the taxpayers, confirming or revoking the approved
valuation proposal.
4. Formulate an alternative modification, duly justified.
Article 161. The Tax Administration will have a period of twelve (12) months, counted after the
expiration of the hearing period for the taxable person referred to in the previous article, to decide
on the modification of the proposed valuation of transactions between related parties. , expired
which will be deemed rejected. In the event of approval of the proposed modifications set out in
paragraphs a and b of the previous article, the Tax Administration and the taxable persons must
apply what results from the approved proposal. In this sense, the Tax Administration will value the
operations that are the subject of the proposal by the values at which they have been carried out
between related parties when said values are a consequence of the correct application of the
approved modification proposal.
Article 162. The revocation of the decision approving the valuation proposal will determine the
completion of the agreement. In this case, the operations carried out between the related parties
may be valued in accordance with the provisions of articles 111, 112 and 113 of this Decree with
Article 163. The rejection of the modification made by the taxpayers will determine the culmination
of the previously established agreement. In the event of an agreement being brokered with the
administration of another state, the modification of the valuation proposal will require prior
modification of the agreement or a new agreement between the parties.
Article 164. Advance transfer pricing agreements will apply to the current fiscal year on the date of
their subscription and during the three (3) subsequent fiscal years. The validity may be greater
when they derive from a friendly procedure, under the terms of an international treaty to which the
Bolivarian Republic of Venezuela is a party.
Article 165. The expenses incurred due to the analysis of the proposals presented or the signing of
advance agreements on transfer pricing will be borne by the taxpayer, without prejudice to the taxes
provided for in special Laws.
Article 166. The signing of the agreements entered into in this Section does not limit in any way the
supervisory power of the Tax Administration. However, the administration may not object to the
valuation of the transactions contained in the agreements, as long as the operations have been
carried out according to the terms thereof, without prejudice to the provisions of article 154 of this
Decree with Rank, Value and Force. Of law.
Article 167. Advance agreements on transfer pricing and decisions issued by the Tax
Administration through which proposals for the valuation of operations carried out between related
parties, their modification, or decisions are approved or rejected, expressly or tacitly. that render
void the Prior Agreements on Transfer Pricing will not be contestable by the means provided for in
the Organic Tax Code or other legal provisions, without prejudice to the appeals that may be filed
against the determination acts that may be issued as a consequence of said decisions or the
application of Advance Transfer Pricing Agreements.
Sixth section
Formal Duties
Article 168. Transactions between related parties carried out in the fiscal year must be reported to
the Tax Administration through an informative declaration, which must be presented in the month of
June following the closing date of the fiscal year, in the terms established by the Tax Administration
through the respective Providence.
Article 169. The documentation and information related to the calculation of the transfer prices
indicated in the declaration forms authorized by the Tax Administration must be kept by the
taxpayer during the period provided for in the law, duly translated into the Spanish language, if
applicable. case. To this end, the documentation and information to be kept will be, among others,
the following:
1. List of fixed assets used in the production of income grouped by concept, including the
methods used in their depreciation, historical costs and the financial and accounting
implication of their disposal, as well as the documents that support the acquisition of said
assets. assets and documents that support the transaction or operation.
2. Risks inherent to the activity such as: commercial risks, financial risks, assumed in: the
production, transformation, marketing, sale of goods and/or services carried out by the
taxable person, whether or not susceptible to accounting valuation and/or quantification .
3. Organizational scheme of the company and/or groups, functional information of the
departments and/or divisions, strategic associations and distribution channels.
4. Surnames and names, name and/or company name, tax information registration number,
tax domicile and country of residence of the taxpayer domiciled in the Bolivarian Republic of
Venezuela, as well as information on directly or indirectly related parties, the documentation
of the nature of the aforementioned relationship arises; type of business, main clients and
shares in other companies.
5. Information on operations carried out with related parties, directly or indirectly, date, amount
and currency used.
6. In the case of multinational companies, in addition, the main activities carried out by each of
the companies in the group, the place of execution, operations carried out between them,
scheme or any other element from which the shareholding of the companies that make up
the group arises. ; contracts that deal with the transfer of shares, increases or decreases in
capital, redemption of shares, merger and other relevant corporate changes.
7. Financial statements for the taxpayer's fiscal year, prepared in accordance with generally
accepted accounting principles; balance sheet, income statement, equity account
movement statements and cash flow statement.
8. Contracts, agreements or agreements entered into between the taxpayer and the subjects
linked to him abroad (distribution, sales, credit agreements, guarantee establishments,
"Know-How" licenses, trademark use, copyright and industrial property, on cost attribution,
development and research, advertising, establishment of trusts, corporate participations,
investments in Securities, among others); as well as, documentation relating to the nature
of intangible or intangible assets, market value, situation, degree of protection of property
rights available, rights to use intangible or intangible property, type of property right,
industrial or intellectual, foreseeable benefits, transfer of use in exchange for any other
good or service, form of transaction, leasing of facilities and equipment.
9. Information related to commercial strategies; volume of operations, credit policies, payment
methods, quality processes, national and international certifications of products or services,
exclusivity contracts, guarantees, among others.
10. Statements of production costs and cost of goods and/or services sold, if applicable.
11. Method or methods used to determine transfer prices, indicating the criteria and objective
elements considered to determine that the method used is the most appropriate for the
operation or company.
12. Information on operations of comparable companies, with an indication of the concepts and
amounts compared, in order to eliminate overestimation or underestimation of the items
and accounts that may affect them.
13. Specific information about whether the related parties abroad are or were subject to an
audit regarding transfer pricing, or if they are settling any tax dispute regarding transfer
pricing before the competent authorities or courts. Likewise, information on the status of the
dispute processing. In the event that there are resolutions issued by the competent
authorities or that there is a final ruling issued by the corresponding courts, a copy of the
pertinent decisions must be kept.
14. Information related to the monthly control of entries, exits and stocks of goods, recording
the method used to control inventories and valuation thereof.
15. Information related to functional analysis and calculation of transfer prices.
16. Any other information that you consider relevant or that may be required by the Tax
Administration.
Sole Paragraph: When the information is on computer media, the taxpayer must take all security
measures to keep it at the disposal of the Tax Administration, without prejudice to the instructions it
dictates on the matter, in any software, application or technology in that they meet.
Article 170. For the purposes of calculating Transfer Prices, taxpayers who enter into open, primary
and/or secondary market financial operations that are international in nature, regardless of the
Security Title, must keep an additional Chronological Book of these operations, leaving a record in
them of:
1. Name and surname or company name of the seller or buyer of said Security.
2. Identification of the amount of the operation, unit value of the Security, negotiated units,
interest rate, agreed currency and its current exchange rate for the purchase of said
currency at the time of the operation, date of intermediaries involved in the operation, place
negotiation and custodians.
TITLE VIII
OF CONTRAVENTIONS AND THE AUTHORIZATION TO SETTLE RETURNS
Article 171. If any objection arises from the verification of the data expressed in the income tax
returns submitted prior to the date of initiation of the tax intervention, the corresponding fine will be
imposed on the taxpayer. This penalty will not be imposed on natural or similar persons when the
tax settled in accordance with the objection does not exceed five percent (5%) of the tax obtained
based on the declared data.
Nor will any penalty be applied in the following cases:

1. When the objection arises from differences between the amortization or depreciation
requested by the taxpayer and that determined by the administration.
2. When the objection arises from errors by the taxpayer in the classification of the income.
3. When the objection has been based exclusively on the data provided by the taxpayer in his
return; and
4. When the repair arises due to the bad debts referred to in article 27 of this Decree with
Article 172. The objections made to taxpayers of this Decree with Rank, Value and Force of Law,
as well as the settlement of tax adjustments, fines and interests must be formulated in accordance
with the provisions of the Organic Tax Code.
TITLE IX
OF INFLATION ADJUSTMENTS
CHAPTER I
From the Initial Adjustment for Inflation
Article 173. For tax purposes only, the taxpayers referred to in Article 1 of this Decree with Rank,
Value and Force of Law, who began their operations as of January 1, 1993, and carry out
commercial activities , industrial, exploitation of mines and hydrocarbons and related activities,
which are required to keep accounting books, must, at the close of their first taxable year, carry out
an initial update of their non-monetary assets and liabilities, according to the rules provided for in
this Decree with Rank, Value and Force of Law, which will result in a variation in the amount of net
worth for that date.
Taxpayers who carry out banking, financial, insurance and reinsurance activities will be excluded
from the inflation adjustment system provided for in this Decree with Rank, Value and Force of Law.
Once the initial update of non-monetary assets and liabilities has been carried out, the Updated
Fiscal General Balance will serve as an initial point of reference to the regular inflation readjustment
system provided for in Chapter II of Title IX of this Decree with Rank, Value and Force of Law.
Taxpayers who close their fiscal year after December 31, 1992 and are subject to the inflation
adjustment system, will make the initial adjustment required by this article on the closing day of that
fiscal year.
First Paragraph. Taxpayers who habitually carry out non-commercial business activities and keep
accounting books may benefit from the inflation adjustment system under the same conditions
established for those obliged to submit to it. Once the taxpayer has taken advantage of the
comprehensive adjustment system covered by this Title, he or she will not be able to withdraw from
it, regardless of his or her business activity.
Second Paragraph. Non-monetary assets and liabilities are considered those items of the
Taxpayer's Historical General Balance that, due to their nature or characteristics, are susceptible to
protection from inflation, such as: inventories, goods in transit, fixed assets, buildings, land,
machinery, furniture, equipment, construction in progress, permanent investments, investments
convertible into shares, deferred charges and credits and intangible assets. Credits and debts with
an adjustment clause or in foreign currency and interest collected or paid in advance or recorded as
deferred charges or credits will be considered monetary assets and liabilities.
Third Paragraph. For the sole purposes of this Decree with Rank, Value and Force of Law, the
initial update of non-monetary assets and liabilities will result in a debit to the respective asset
accounts and a credit to the corresponding liability accounts and the net will be will be recorded in
an account within the taxpayer's assets that will be called equity update.
Fourth Paragraph. Capitalizations in the accounts of non-monetary assets due to the effects of
currency devaluations and any revaluations of non-monetary assets not authorized by this Decree
with Rank, Value and Force of Law must be excluded from non-monetary assets. They must also
be excluded from the assets and liabilities, the assets, debts and obligations applied in their entirety
to the production of presumed profits or enrichments, exempt, exonerated or not subject to the tax
established by this Decree with Rank, Value and Force of Law and intangible assets not paid for or
assumed by the taxpayer or other updates or revaluations of assets not authorized by this Decree
with Rank, Value and Force of Law.
Likewise, accounts and receivables from shareholders, administrators, affiliates, subsidiaries and
other related and/or linked companies must be excluded from the assets and liabilities and therefore
from the net equity, in accordance with the provisions of Article 116 of this Decree. with Rank, Value
and Force of Law.
These exclusions will be accumulated in an estate account called Historical Estate Tax Exclusions.
Article 174. A Registry of Updated Assets is created in which all taxpayers referred to in the
previous article must register. Registration in this registry will cause a tax of three (3%) percent on
the increase in the value of the initial inflation adjustment of depreciable fixed assets. This tax may
be paid in up to three (3) equal and consecutive portions, in successive fiscal years, starting from
the registration of this registry.
Those companies that are in the pre-operational period, which ends with the first billing, must
determine and pay the three percent (3%) tax after the end of said period, under the same payment
conditions provided for in the heading of this article. .
Article 175. The initial adjustment contracted in article 173 of this Decree with Rank, Value and
Force of Law, will be carried out taking as a calculation basis the variation that occurred in the
National Consumer Price Index established by the competent authority, between the month prior to
its acquisition or the month of January 1950, if the acquisition had been prior to that date, and the
month corresponding to the close of its first taxable year.
Article 176. The value resulting from the adjustment of fixed assets must be depreciated or
amortized in the period originally planned for them and will only be admitted for the calculation of
the tax established in this Decree with Rank, Value and Force of Law, quotas of depreciation or
amortization for the remaining years until the end of the useful life of the assets, provided that this
has been reasonably estimated.
Article 177. Natural persons, companies of persons and non-trading communities that dispose of
assets capable of generating income subject to the tax established in this Decree with Rank, Value
and Force of Law, for the purposes of determining said income, will have the right to update the
cost of acquisition and improvements of such goods, based on the variation experienced by the
National Consumer Price Index established by the competent authority, in the period between the
month of their acquisition or the month of January 1950, if the acquisition would have been prior to
that date, and that of its disposal. The updated initial value will be the one deducted from the sale
price to determine the taxable income. In this case, registration in the Registry of Updated Assets,
established in this Decree with Rank, Value and Force of Law, will not be necessary.
The deductible adjusted cost may not exceed the amount agreed for the sale, in such a way that no
losses are generated in the operation.
Chapter II
Regular Adjustment for Inflation
Article 178. For tax purposes only, the taxpayers referred to in Article 173 of this Decree with Rank,
Value and Force of Law, once the initial adjustment has been made, must readjust their assets and
liabilities at the close of each taxable year. non-monetary, the equity at the beginning of the year
and the increases and decreases in equity during the year, other than profits or losses, in
accordance with the procedure set out below. The greater or lesser value generated by updating
non-monetary assets and liabilities, equity at the beginning of the year and increases and
decreases in equity during the year, other than profits or losses, will be accumulated in a
reconciliation account. tax that will be called Adjustments for Inflation and that will be taken into
consideration for the determination of taxable income, with the exception of companies in the pre-
operational stage, for which the adjustment for inflation will only be taken into consideration for the
determination of taxable income in the period following that in which they were incorporated into the
inflation adjustment system in accordance with the provisions of article 174 of this Decree with
As of the validity of this Decree with Rank, Value and Force of Law, those taxpayers who made the
regular adjustment under the validity of the Income Tax Law of 1999, will comply with the provisions
of this Chapter.
Article 179. The greater or lesser value resulting from readjusting the updated net value of non-
monetary assets and liabilities, existing at the close of the taxable year, will be accumulated in the
inflation readjustment account as an increase or decrease in taxable income. other than inventories
and goods in transit, according to the annual variation experienced by the National Consumer Price
Index established by the competent authority, if said assets and liabilities come from the previous
year, or from the month of their acquisition, if they have been incorporated during the taxable year.
The net present value of non-monetary assets and liabilities must be depreciated, amortized or
realized, depending on their nature, over the remainder of their useful life.
Sole Paragraph. The net present value of non-monetary assets and liabilities is equal to the
present value of the acquisition cost less the present value of accumulated depreciation,
amortization or realization.
Article 180. The readjusted values must be taken into account for the purposes of determining the
cost at the time of the disposal of any of the non-monetary assets that make up the taxpayer's
assets, as indicated in this Title.
Article 181. The taxpayer, for the sole purposes of this Decree with Rank, Value and Force of Law,
in accordance with the provisions of article 192 of this Decree with Rank, Value and Force of Law,
must keep a fiscal control record. that contains at least the following concepts:
1. Acquisition dates of non-monetary assets and liabilities.

2. Historical acquisition costs.
3. Historical accumulated depreciation or amortization at the close of the previous taxable
year and at the close of the current taxable year.
4. Accumulated update of costs and depreciation or amortization from the date of acquisition
to the closing date of the previous taxable year.
5. Cumulative update of costs and depreciation or amortization from the date of acquisition to
the closing date of the current taxable year.
6. Portion of the readjustment corresponding to the taxable year.
7. Book value of non-monetary assets disposed of or retired.
8. Update of the cost and accumulated depreciation or amortization of non-monetary assets
sold or retired from the date of acquisition to the closing date of the taxable year.
9. Initial adjustment of the cost and accumulated depreciation or amortization not attributable
to the cost of sale.
10. Sale price of the non-monetary assets disposed of.
Article 182 . The corresponding asset account will be debited or credited, and the inflation
adjustment account will be credited or debited, the greater or lesser value resulting from readjusting
the existing inventories of raw materials, products in process or finished products for sale,
merchandise for sale or merchandise in transit, at the closing date of the tax year, using the
procedure specified below:
1. The final inventory adjusted in the previous fiscal year is readjusted with the variation
experienced by the National Consumer Price Index established by the competent authority,
corresponding to the taxable year.
2. A comparison will be made of the totals at the historical cost of inventories of raw materials,
products in process, finished products or merchandise for sale and merchandise in transit,
at the close of the taxable year with the historical totals at the close of the previous taxable
year. If from this comparison it turns out that the amount of the final inventory is equal to or
less than the initial inventory, it is understood that all the final inventory comes from the
initial inventory. In this case, the final inventory will be adjusted proportionally to the
readjusted initial inventory, as established in literal a of this article.
3. If from the comparison provided in the previous paragraph, it turns out that the final
inventory exceeds the initial inventory, the portion in bolivars that exceeds the initial
inventory will not be adjusted. The portion that comes from the initial inventory will be
updated proportionally to the readjusted initial inventory as established in literal a of this
article.
4. The final inventory updated according to the methodology indicated in the previous
paragraphs will be compared with the value of the historical final inventory. The difference
is the cumulative adjustment to ending inventory.
5. The accumulated adjustment to the final inventory obtained by the comparison provided in
paragraph d will be compared with the accumulated adjustment to the final inventory at the
close of the previous tax year. If the accumulated adjustment to the final inventory of the tax
year is greater than the accumulated adjustment to the final inventory at the close of the
previous tax year, the difference will be charged to the respective inventory account of the
taxpayer's assets with credit to the Adjustment for Inflation account.
6. If from the comparison of the previous literal it is deduced that the accumulated adjustment
to the final inventory at the close of the tax year is less than the accumulated adjustment to
the inventory at the close of the previous tax year, the difference will be credited to the
respective inventory account of the taxpayer's assets. and will be charged to the Inflation
Adjustment account.
First Paragraph. If inventories of accessories and spare parts are charged to cost of sales using
the traditional cost of sales procedure, they must be included in this procedure. If the charge to the
cost of sales is made through charges to manufacturing expenses or another similar account, the
inventories of accessories and spare parts must be treated as other non-monetary items and
updated in accordance with article 179 of this Decree with Rank, Value and Force of Law.
Second Paragraph. When the taxpayer uses the inventory valuation system called specific
identification or specific prices in its cost accounting, it may use the actual acquisition dates of each
product individually considered, prior approval by the Tax Administration, to update the costs.
acquisition of inventory balances at the close of each taxable year. The adjustment corresponding
to the taxable year will be the difference between the accumulated adjustments of the taxable year
and the accumulated adjustments to the previous taxable year. If the adjustment to the taxable year
is greater than the previous taxable adjustment, a debit will be made to the inventory account and a
credit to the Inflation Adjustments account, otherwise the entry will be the other way around.
Article 183. Net losses due to inflation not compensated may not be carried forward to subsequent
years.
Article 184. The increase or decrease in value that results from annually readjusting the net worth
at the beginning of the taxable year, based on the variation experienced by the National Consumer
Price Index set by the competent authority, in the taxable year. For these purposes, net worth will
be understood as the difference between the total monetary and non-monetary assets and
liabilities,
Assets and liabilities and net worth, accounts and receivables from shareholders, administrators,
affiliates, subsidiaries and other related and/or linked companies must be excluded in accordance
with the provisions of article 116 of this Decree with Rank, Value and Force of Law. Assets, debts
and obligations applied in their entirety to the production of presumed profits or enrichments,
exempt, exonerated or not subject to the tax established by this Decree with Rank, Value and Force
of Law, must also be excluded.
First Paragraph. The exclusions provided for in the previous paragraph will be accumulated for the
sole purposes of this Decree with Rank, Value and Force of Law in an equity account called
Historical Tax Exclusions to Equity.
Second Paragraph. Modifications to the Historical Tax Exclusions to Assets account during the
year will be treated as increases or decreases in assets in accordance with the provisions of articles
185 and 186 of this Decree with Rank, Value and Force of Law.
Article 185. The increases in assets actually paid in money or in kind that occurred during the
taxable year will be accumulated in the Inflation Adjustment item, as a decrease in taxable income,
with the increase in assets readjusted according to the percentage of variation in the index. National
Consumer Prices set by the competent authority, between the month of the increase and the close
of the taxable year.
Revaluations of the taxpayer's assets and rights other than those originated for investments
tradable on the stock exchanges will not be considered increases in assets. Shareholder
contributions pending capitalization at the close of the taxable year must be capitalized in the
following taxable year, otherwise they will be considered monetary liabilities. Likewise, the
taxpayer's profits in the taxable year are not considered increases in equity, even in cases of
accounting closings of less than one year.
Article 186. The amount resulting from readjusting the decreases in assets that occurred during the
taxable year will be accumulated in the Inflation Readjustment item, as an increase in taxable
income, according to the percentage of variation of the National Consumer Price Index established.
by the competent authority, in the period between the month of the decrease and the closing of the
taxable year.
Decreases in equity are considered to be dividends, profits and similar shares distributed within the
company's taxable year and capital reductions.
Article 187. Negotiable investments that are listed or sold through stock exchanges of the
Bolivarian Republic of Venezuela, that are held at the close of the taxable year will be adjusted
according to their price on the respective stock exchange on the date of their disposal or at the
close of the taxable year.
These investments are considered monetary assets and must thus be classified in the Taxpayer's
Updated Fiscal Balance Sheet as long as they are not sold, without prejudice to the provisions
established in articles 76 and 77 of this Decree with Rank, Value and Force of Law for the moment
of its disposal.
Article 188. For the purposes of this Chapter, the gains or losses arising from adjusting assets or
liabilities denominated in foreign currency or with a readjustment clause based on exchange
variations in the fiscal year in which they are payable, collected or paid, whichever comes first.
Article 189. The taxpayer who is the owner of fixed assets invested in the object, business or
activity indicated in this Chapter that are fully depreciated or amortized, may revalue them and
adjust their general balance in the accounting, but this reevaluation or adjustment will have no
effect. fiscal.
Article 190. For the sole purposes of this Decree with Rank, Value and Force of Law, the increase
or decrease in value resulting from the regular inflation readjustment of the net assets, will form part
of the assets from the last day of the taxable year, and must be transferred its value to the equity
update account.
Article 191. Presumed enrichments, determined in accordance with the rules established in this
Decree with Rank, Value and Force of Law, will be excluded from the inflation readjustment system,
to which this Chapter is contracted. The same exclusion will be made with respect to the net assets
applied to the production of such profits or enrichments.
Article 192. Taxpayers subject to the comprehensive adjustment and readjustment system for the
effects of inflation, provided for in this Title, must keep an additional fiscal book where all necessary
operations will be recorded, in accordance with the rules, conditions and requirements provided. in
the Regulations of this Decree with Rank, Value and Force of Law and especially the following:
1. The initial Updated Fiscal General Balance (final at the end of the previous taxable year)
readjusted with the variation of the National Consumer Price Index set by the competent
authority during the taxable year. This balance will serve as the basis for the calculation of
the adjustment to the initial assets contained in article 184 of this Decree with Rank, Value
and Force of Law.
2. The details of the adjustments of non-monetary items in accordance with the provisions of
3. The entries for the historical tax exclusions to assets provided for in article 184 of this
4. The adjustment and readjustment entries provided for in this Chapter with the details of
their calculations.
5. The Final Updated Fiscal Balance Sheet; including all the entries and exclusions provided
for in this Decree with Rank, Value and Force of Law, where the Adjustments for Inflation,
Update of Equity and Historical Tax Exclusions to the Equity accounts are shown
separately in the equity.
6. A reconciliation between the Historical results of the year and the taxable income.
Sole Paragraph. The Tax Administration must authorize any electronic accounting system,
containing programs referring to the application of the inflation adjustment in accordance with the
provisions established in this Chapter for the sale or transfer of commercial use rights.
Article 193 . The competent authority must publish in two of the newspapers with the largest
circulation in the country or through electronic media in the first ten (10) days of each month, the
variation and the National Consumer Price Index of the previous month, expressed with five decimal
places. .
TITLE
OF THE TRANSITIONAL AND FINAL PROVISIONS
Article 194. For the purposes of this Decree with Rank, Value and Force of Law, low tax
jurisdictions are considered to be those that are classified as such by the Tax Administration,
through Administrative Ruling.
Article 195. The Tax Administration, through a general ruling, will dictate the rules that regulate the
accounting adjustments that must be made by taxpayers who carry out banking, insurance and
reinsurance activities, by virtue of their exclusion from the Inflation Adjustments System provided for
in the this Decree with Rank, Value and Force of Law.
Article 196. The compensation corresponding to workers on the occasion of work, determined in
accordance with the law or employment contracts, caused before the validity of this Decree with
Rank, Value and Force of Law, will be deductible in the year in which they are actually paid to the
workers or their beneficiaries, or when they are delivered to them to constitute a trust in accordance
with the provisions of the Decree with Rank, Value and Force of Organic Law of Labor, Male and
Female Workers.
Article 197. The President of the Republic, in the Council of Ministers, within the fiscal policy
measures required according to the current, sectoral and regional situation of the country's
economy, may fully or partially exempt the tax established herein. Decree with Rank, Value and
Force of Law, the enrichments obtained by sectors that are considered of particular importance for
national economic development or that generate greater employment capacity, as well as the
enrichments derived from the industries or projects that are established or developed in certain
regions of the country.
First Paragraph : The exemption Decrees issued in execution of this rule must indicate the
conditions, deadlines, requirements and controls required, in order to achieve the fiscal policy
objectives pursued in the current, sectoral and regional order.
Second Paragraph: Only those who, during the period of enjoyment of such benefits, strictly
comply with the obligations established in this Decree with Rank, Value and Force of Law, its
Regulations and the Decree that approves them, may enjoy the exemptions provided for in this
article. .
Third Paragraph: Only general exemptions may be established for certain regions, activities,
situations or categories of taxpayers and not for certain taxpayers in particular.
Article 198 . Until the Tax Administration issues the Provisions provided for in Article 86 of this
Decree with the Rank, Value and Force of Law, the provisions provided for in Decree No. 1,808 of
April 23, 1997, published in the Official Gazette of the Bolivarian Republic of Venezuela No. 36,203.
Article 199. The National Executive may modify establishing different rates for certain taxable
persons or economic sectors, but they may not exceed the limits provided for in this Decree with
Article 200. This Decree with Rank, Value and Force of Law, will come into force upon its
publication in the Official Gazette of the Bolivarian Republic of Venezuela and will apply to the years
that begin during its validity.
Given in Caracas, on the seventeenth day of the month of November, two thousand and fourteen.
Years 204 of Independence, 155 of the Federation and 15 of the Bolivarian Revolution.
Be fulfilled,
(L.S.)
NICOLAS MADURO MOROS
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Law of income tax

NICOLAS MADURO MOROS

DECREE WITH RANK, VALUE AND FORCE OF

b) Public limited companies and limited liability companies.

c) Partnerships in collective name, limited partnership, communities, as well as any other

f) Permanent establishments, centers or fixed bases located in the national territory.

Article 14. The following are exempt from tax:

Second Paragraph: Income obtained as representation expenses by Managers, Directors,

Fourth Paragraph: Travel expenses obtained as a consequence of the provision of personal

1. The amount of compensation paid.

Article 26. The following are considered capitalizable investments:

1. Salaries, salaries, emoluments, allowances, pensions, subsidies, commissions and other

a) That the debts come from the business's own operations.

Seventh Paragraph. In cases of export of goods manufactured in the country, or provision of

Article 28. Depreciation or amortization installments corresponding to assets revalued by the

Article 46. When there is a global or indiscriminate amount of income corresponding to

1 For the fraction up to 1,000.00 6.00%

2 For the fraction that exceeds 1,000.00 to 1,500.00 9.00%

3 For the fraction that exceeds 1,500.00 to 2,000.00 12.00%

4 For the fraction that exceeds 2,000.00 to 2,500.00 16.00%

5 For the fraction that exceeds 2,500.00 to 3,000.00 20.00%

6 For the fraction that exceeds 3,000.00 to 4,000.00 24.00%

7 For the fraction that exceeds 4,000.00 to 6,000.00 29.00%

8 For the fraction that exceeds 6,000.00 34.00%

For the fraction up to 2,000.00 15%

For the fraction that exceeds 2,000.00 up to 3,000.00 22%

For the fraction that exceeds 3,000.00 34%

1. Salaries, salaries, emoluments, per diems, representation expenses, pensions, subsidies

Such enrichment will be considered as a dividend or participation received by the shareholder,

1. Volume of transactions carried out in the taxable year or years.

1. The characteristics of the operations.

Advance transfer pricing agreements

1. Approve the proposal made by the taxpayers.

1. Place and date of its formalization.

1. Place and date of its formulation.

1. Approve the modification formulated by the taxpayers.

Nor will any penalty be applied in the following cases:

1. Acquisition dates of non-monetary assets and liabilities.

NICOLAS MADURO MOROS

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