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Venezuela
Government and institution measures in response to COVID-19.
Government and institution measures in response to COVID-19.
Return to homepage | Last updated: 17 Jun, 2020
Tax measures – Direct and Indirect
(e.g. payment deferrals, rate reductions…)
Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.
Employment-related measures
(e.g. state compensation schemes, training…)
- On March 23, 2020 was published the Decree N° 4167 containing the Special Bar Against Dismissals ratifying the special protection against dismissals until December 31, 2020. The Special Bar Against Dismissals means that employers may not dismiss, impair the labor conditions, or transfer a worker without just cause.
Economic stimulus measures
(e.g. loans, moratorium on debt repayments…)
Special Regime for credit granted by banking institutions
- The Ministry of the People’s Power for Economy and Finance, through the Superintendence of the Banking Sector Institutions (SUDEBAN, for its Spanish acronym), shall implement a special payment regime for credits in force and effect in the domestic banking sector, both public and private, under the following guidelines:
- The special regime shall be applicable to any type of credit granted by banking institutions, in force and effect and paid up whether in full or partially by March 13, 2020.
- The payment of both principal and interest will be extended, as well as any restructuring terms and any other clause contained in the respective credit agreements.
- The suspension of payments may be established, entailing payment enforcement and compliance of any other condition relating to the suspended payment, for a term of up to one hundred and eighty (180) days.
- Special conditions of a general nature may be established for certain credit categories
- Neither delay interest nor the immediate payment enforceability upon any credit may be established at the end of the suspension period.
- In addition, credit assignment by banking institutions is instructed under priority terms to the strategic sectors which activities are essential for the purposes of attending the preventive and mitigating measures concerning the overall alarm status decreed by the Executive.
BCV
On March 30, 2020, Resolution N°20-03-01 was published, the contents of the resolution, follow:
- The BCV is looking to mitigate the economic impacts of COVID-19 by implementing new actions regarding monetary policy matters
- Banking institutions must maintain a minimum reserve of 93% of the total amount of net liabilities in local currency
- As of 1 April 2020, the banking system shall use 7% of the new deposits entering the system, which will be available to support the payment system and be able to assist credit priorities.
- The objective of these actions is to counteract the new limitations in the development of national economic activities by providing a wider space for productive credit.
Other measures and sources
- Decree number 4.160 was published in Official Gazette N° 6.159 Extraordinary, dated March 13 of 2020 whereby an overall alarm status is declared for the purposes of allowing the Executive to adopt urgent, effective and necessary measures involving the protection and preservation of health of the Venezuelan population, and intended to mitigating and eliminating epidemic risks in connection with the coronavirus (COVID-19) and its potential strands, thereby ensuring timely, effective and efficient care of any cases that may be originated. Amongst these measures to be adopted by the Executive as per the contents of the decree, follow:
- Imposing circulation restrictions (for both car traffic and pedestrians) at certain geographic areas as well as for entering or leaving restricted zones, whenever this may be deemed necessary as a measure for protection against or containment of the COVID-19 coronavirus.
- Ordering employment activity suspension for those job functions that cannot be undertaken via remote (home office), except for certain cases such as domestic public services companies, fuel and lubricants selling establishments, healthcare services, pharmacies, etc.
- Ordering the suspension of international flights into the Venezuelan territory or departing from the Venezuelan territory for as long as this suspension may be deemed convenient.
- The final provisions of the decree establish that the suspension or interruption of an administrative procedure as a result of the activity suspension measures or of the circulation restrictions issued, may not be considered as a cause attributable to the interested party and it may not be alleged as cause for delay or tardiness in the compliance of the obligations of the public administration. In any case, upon the suspension or restriction override, the public administration must immediately resume the procedure.
- Finally, this decree will be effective for 30 days, subject to extension for 30 additional days, until the coronavirus (COVID-19) epidemic and its potential strands containment is deemed adequate, and all contagion factors are duly controlled.
Extraordinary Official Gazette of the Bolivarian Republic of Venezuela N° 6.535, dated 12 May 2020, published Decree N° 4.198, and it became the third legal instrument whereby the National Government maintains the State of Alarm in order to adopt urgent, effective and necessary measures to protect and preserve the health of the Venezuelan population, in order to mitigate and eradicate the risks of epidemics related to the coronavirus (COVID-19). Such Decree establishes:
- Ordering restrictions on circulation in certain areas or geographical zones.
- Order the suspension of work activities, which performance is not possible by any form of remoteness that allows the worker to conduct their work from their place of residence, except for activities such as public services, supply of fuel and lubricants, distribution and sale of food, health services, pharmaceuticals, among others.
- Suspend flights to or from Venezuelan territory for as long as the National Government deems appropriate.
- Order the Superintendency of the Banking Sector Institutions, SUDEBAN, to establish the conditions for the provision of public and private banking services.
In addition, it ratifies the measures contained in Decree 4.160, dated 13 March 2020.
The decree provides for a period of 30 days, extendable for the same period, until the state of containment of the epidemic coronavirus disease (COVID-19) or its possible strains is deemed adequate, and its factors of transmission are under control.
This Decree is valid from publication in Official Gazette.
- Extraordinary Official Gazette of the Bolivarian Republic of Venezuela N° 6.528, dated 12 April 2020, published Decree N° 4.186, whereby extending for thirty (30) more days the term established by Decree N° 4.160, dated 13 March 2020, published in Extraordinary Official Gazette of the Bolivarian Republic of Venezuela N° 6.519 relating to the State of Alarm ordered by the National Government, which would serve as a framework for the adoption of measures for the protection and preservation of the Venezuelan people’s health given the epidemic risks associated to coronavirus (COVID-19).
- In Official Gazette of the Bolivarian Republic of Venezuela N° 41.891, dated 1 June 2020, the People’s Power Ministry for Health issued Resolution 090, whereby establishing sanitary regulations relating to Covid-19 pandemics, in order to mitigate and eradicate transmission of the virus within national territory.
- The abovementioned Resolution establishes The Resolution establishes socially responsible health standards that must be complied with and enforced by all citizens; the protocols for the National Public Health System, as well as for public or private health services; and the health regulations that must be complied with in the event of the existence of the COVID19 in national territory, relating to:
- Mandatory use of face masks,
- Hand washing and personal hygiene,
- Take the necessary measures in case of any symptoms of disease or health impairment, and,
- Sanitary conditions in physical contact spaces.
- Finally, it is clarified that this resolution is generally applicable to commercial activities, banking, transportation, work units, registries, notaries and religious ceremonies.
- Extraordinary Official Gazette of the Bolivarian Republic of Venezuela N° 6.542 published Decree N° 4.230 on 11 June 2020, whereby extending for thirty (30) days the term established in Decree N° 4. 198, dated 12 May 2020, published in Official Gazette of the Bolivarian Republic of Venezuela N° 6.535, whereby the State of Alarm was declared in all the National Territory, so that the National Government adopts the necessary measures related to coronavirus (COVID-19).
- The National Government may continue to:
- Order restrictions on movement in certain geographical areas,
- Suspend work activities,
- Order the application of mandatory sanitary measures in public spaces,
- The different levels of the National, State and Municipal Public Administration, central and decentralized, to provide support for the measures and implement plans and protocols applicable to prevent and control this health event, under the coordination that corresponds to the National Government.
- The powers granted to the President of the Bolivarian Republic of Venezuela to take other social, economic and health measures he deems necessary in connection with the coronavirus (COVID-19) remain in effect.
- This decree shall be enforced following its publication in Official Gazette of the Bolivarian Republic of Venezuela.
Main sources of information:
Contact us
Tax: Oswaldo Briceño– obriceno@kpmg.com
Legal: Alessandra Montagna – amontagna@kpmg.com
