Expatriate tax ebook - Venezuela

What taxes?

Capital gains tax
Inheritance, estate & gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth tax
Other specific tax

Capital gains tax
Capital gains - such as sale of real estate or sale of shares - are taxed in so far as they are considered to be from Venezuelan source or depending on the residency of the worker. Capital gains are included in the assessment of net global income of the worker and are taxable like any other income. Sales of share through a Venezuelan stock exchange are subject to a 1% flat rate on the whole amount of the sale.

Inheritance, estate & gift taxes
Venezuela charges inheritance and gift tax only on Venezuela situs assets. A variety of exemptions and allowances are available. The tax rate ranges between 1% and 55% depending on the family relationships.

Investment income
Investment income – such as interest, rents, royalties, etc. – is taxable like any other income. Interest income from savings accounts (or similar) in Venezuelan financial institutions is exempt from Income Tax.

Dividends received from foreigner entities are taxed at 34% (flat rate) and dividends received from Venezuelan entities are taxed at 34% on the dividends paid above the taxable net income previously taxed in the entities.

Local taxes
There is no local or state income tax in Venezuela. There are some local taxes, but they are not applicable to income from employment.

Real estate tax
The real estate tax is a Municipal Tax. The taxable base is the market value of the property. This tax must be paid by the owner of the real estate.

Social security taxes
Both employees and employers are required to contribute to the social security system. Rates are as follows:

Contribution	Compulsory Social Insurance*	Unemployment Insurance*	Habitation Policy Law
Employee	04% wage weekly base	0.5% wage weekly base	01% Wage monthly base
Employee	11% weekly base	1.7% wage weekely base	02% Wage monthly base

* Up to a maximum of 10 monthly minimum salaries

Stock options
Stock options are not common in Venezuelan companies. As a matter of fact, Venezuelan tax law is silent on their tax treatment. Depending on the structure developed, the stock option plan could originate different tax interpretations.

Wealth tax
There is no wealth tax in Venezuela

Other specific taxes
There is a contribution called INCE applicable on salaries paid. The employer must pay a 2% of total salaries and workers must pay 0.5% on a specific end of year bonus set forth in the labor law.

Information about Venezuela:

Last updated 6 July 2011

Please be aware that the data included in this expatriate tax e-book is correct at the time of publication. Please do not act on the information contained within this e-book without first seeking expert, professional advice
Disclaimer

Contact us

For further information on expatriate tax services in Venezuela, please contact Pedro Rosales

Related websites

Servicio Nacional Integrado de Administración Aduanera y Tributaria (SENIAT)

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