Venezuela: Implementation of 0% tax rate for large financial transactions tax on certain transactions

Decree 4,972 (published in the Official Gazette on July 12, 2024) reduced the rate for the large financial transactions tax to 0% (from the previous rate of 2%) for the following transactions:

• Payments in bolivars made by legal entities qualified as special taxpayers and charged to the accounts held by them in the national banking system
• Payments or debt extinguishment made by legal entities qualified as special taxpayers without the mediation of financial institutions

The decree also established that the following transactions will continue to be subject to the 3% large financial transactions tax rate:

• Payments made by individuals and legal entities, in foreign currency, or in cryptocurrencies, or cryptoassets, other than those issued by the Bolivarian Republic of Venezuela, within the national banking system
• Payments made by individuals and legal entities to special taxpayers, in foreign currency, or in cryptocurrencies, or cryptoassets, other than those issued by the Bolivarian Republic of Venezuela, without the mediation of financial institutions

The decree became effective on July 15, 2024.

For more information, contact a KPMG tax professional in Venezuela:

Alessandra Montagna | amontagna@kpmg.com

Alejandro Gomez | adgomez@kpmg.com