Residency rules

Payroll considerations

Taxable income

Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Are there special residency considerations for short-term assignments?

None. As soon as the assignee exceeds 183 days in the calendar year, he/she will become a tax resident. The residence test period is on the calendar based on the income tax law, but some tax treaties provide a 12-month period (roll forward).

Are there special payroll considerations for short-term assignments?

Short-term assignments are most likely to comply with local payroll laws and regulations.

What income will be taxed during short-term assignments?

If the short-term assignment during the tax year does not exceed 183 days only Venezuelan source income would be taxed. If the short-term assignment exceeds 183 days the assignee would be taxed on worldwide income, effectively received in most of the cases.

Are there any additional considerations that should be considered before initiating a short-term assignment in Venezuela?

Foreign exchange control regime imposed in Venezuela would most likely affect repatriation of excess cash at the end or during the assignment. Specific advice should be sought on this issue.