Venezuela: Law for coordination and harmonization of tax powers of states and municipalities

Organic Law for the Coordination and Harmonization of the Tax Powers of States and Municipalities was approved and sanctioned by the National Assembly

Law for coordination and harmonization of tax powers of states and municipalities

Article Posted date 08 August 2023

The Organic Law for the Coordination and Harmonization of the Tax Powers of States and Municipalities (LOCAPTEM) was approved and sanctioned in a second discussion by the National Assembly on 18 July 2023, and its constitutionality was confirmed by Judgment No. 0956 of the Constitutional Chamber of the Supreme Court of Justice dated 20 July 2023. It is expected to be published in the Official Gazette.

The LOCAPTEM reiterates the obligation for local entities to comply with the constitutional principles that order the tax system, and establishes:

  • Limits to the tax bases and aliquots of the taxes
  • Limits to sanctions
  • Creation of the dynamic account unit
  • Common taxpayer registry
  • Duration and renewal of licenses
  • Simplification and speed of administrative procedures
  • Judicial protection before provisions of contrary state laws and ordinances
  • Encouragement of entrepreneurship

 

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