![]() ![]() While the above non-taxable events are established in the Exoneration Decree and not directly in the LFTT Law, it seems valid to interpret that such cases will be excluded from LFTT in practice. Remittances sent from abroad through authorized banking institutions.Payments in currency other than bolivars or in cryptocurrencies or cryptoassets other than those issued by the Bolivarian Republic of Venezuela, made to individuals, legal entities and economic entities without legal personality that are not qualified as special taxpayers. ![]() Payments made in bolivars with national and international debit or credit cards from foreign bank accounts through authorized payment devices, except those made by special taxpayers.Foreign exchange transactions carried out by individuals and legal entities.7ĭo note that the Exoneration Decree established several "non-taxable events," as follows, which refer to transactions - other than the trading of securities - that would initially be taxable under the LFTT Law: The beneficiaries of the exoneration set forth in the Exoneration Decree will lose the benefit if they fail to comply with any formal duties established in the LFTT Law or the Organic Tax Code. In other words, the Exoneration Decree extends the exemption established in Article 8, paragraph 6 of the LFTT Law (with the exception of securities traded in the agricultural stock exchange) to cases in which such transactions are carried out in foreign currency, cryptoassets or foreign cryptocurrencies. Specifically, the exoneration set forth in the Exoneration Decree applies to: (i) debits arising from the purchase, sale and transfer of the custody of securities issued or guaranteed by the Republic or the Central Bank of Venezuela (CBV) (ii) debits or withdrawals (interest included) connected to the settlement of the capital and (iii) securities traded through stock exchanges, made in currency other than legal tender or in cryptocurrencies or cryptoassets not issued by the Bolivarian Republic of Venezuela. The Exoneration Decree became effective immediately with its publication in the Official Gazette on 25 February 2022. In addition to the assumptions of exemptions established in the LFTT Law, the National Executive exonerated certain transactions for the term of one year through the Exoneration Decree. Meanwhile, the sole paragraph of Article 8 establishes that certain exemptions will apply only if the connected transactions are executed in legal tender or in cryptoassets or foreign cryptocurrencies issued by the Bolivarian Republic of Venezuela. The LFTT Law adds another assumption of exemption on foreign exchange transactions carried out by duly authorized foreign exchange operators. 4Įssentially, the LFTT Law appoints new LFFT taxpayers (whether or not special taxpayers) and increases the tax rate (from 2% to 3%) for certain payments made in foreign currency, cryptocurrencies or cryptoassets other than those issued by the Bolivarian Republic of Venezuela. In both cases, provided the payments are made in foreign currency, cryptoassets or foreign cryptocurrencies, the transaction will be subject to a 3% LFTT rate. The LFTT Law also establishes that any individual or legal entity will be subject to the LFTT on payments made in foreign currency, cryptoassets or foreign cryptocurrencies: (i) to any individual, by using the national banking system, without intermediation of a foreign banking correspondent and/or (ii) to any special taxpayer, without intermediation of financial institutions. Also such non-taxable transactions exceed the scope of the exoneration itself. 3 The Exoneration Decree also establishes that certain additional transactions will not be considered as taxable with the LFTT (i.e., non-taxable events). These transactions include: (i) debits connected to the assignment of Venezuelan securities (ii) the settlement of the principal or interest thereof and (iii) securities traded through the Stock Exchange in currencies other than legal tender or through cryptoassets or cryptocurrencies other than those issued by the Bolivarian Republic of Venezuela ("Exoneration Decree"). 4,647, which exonerates certain transactions from the payment of the large financial transactions tax (LFTT). Simultaneously, the National Executive issued Presidential Decree No. The reform introduces important changes regarding taxable transactions, applicable tax rates, exemptions and exonerations. A recent reform to the Large Financial Transactions Tax Law (LFTT Law) was published on 25 February 2022 1, which will enter into force on 28 March 2022. ![]()
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