A law enacting a net worth tax to be levied on certain taxpayers was enacted in July 2019 and then “reprinted” in August 2019 with certain changes or corrections. This was followed by an administrative ruling that provided guidance concerning the requirements to file a return and pay the net worth tax.
The initial return for the net worth tax is due on or before 30 November 2019.
Taxpayers subject to the net worth tax are those having a net worth exceeding 150,000,000 “tax units” (approximately U.S. $348,000). Only those taxpayers (individual persons or legal entities that have been specifically designated as such by the Venezuelan tax administration) are subject to this tax. Those taxpayers subject to the net worth tax are known as “special taxpayers.”
Certain “territoriality criteria” also apply for purposes of determining taxpayers subject to the net worth tax. For instance, the tax can apply to the entire net worth of assets, goods or property regardless of their location or the location where rights involving such property may be exercised. Non-residents also may be subject to the net worth tax for assets, goods or property located in Venezuela’s national territory (and similarly with respect to rights involving such property that may be exercised in the national territory). Concerning a permanent establishment in Venezuelan, individuals and entities also may be “special taxpayers” subject to the tax for the entire net worth attributable to the permanent establishment, regardless of the place where the goods, assets or property may be located or the place where the rights involving them may be exercised.
Other rules for the net worth tax include the following:
For more information, contact a tax professional with KPMG’s Latin America Markets practice or a tax professional with the KPMG member firm in Venezuela:
Alfonso A-Pallete | +1 (305) 913 2789 | firstname.lastname@example.org
Alejandro Gomez | + 58 212 277 41 90 | email@example.com
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