A Law for the Protection of Social Security Pensions (published in Official Gazette on May 8, 2024) created a new special tax contribution to provide protection for social security pensions. This contribution will be independent from the contributions currently paid to the Venezuelan Social Security Institute.
Presidential Decree No. 4,952 and Administrative Ruling No. SNAT/2024/000042 were subsequently issued to set the rate of the special contribution and establish the rules relating to the filing and payment of this tax, respectively.
- Taxpayers: All legal entities and other partnerships, including irregular or de facto partnerships, of private nature, whether domiciled in Venezuela or not, carrying out economic activities in the national territory.
- Taxable base: The total amount paid by the taxpayer to workers as salary and non-salary bonuses. Under no circumstance may the calculation base of these payments made to each worker, be less than the "indexed minimum comprehensive income" defined by the National Executive.
- Rate: It will be set by the President of the Republic annually (and may be up to 15%), according to the type or class of economic activity involved. The rate has been set at 9% for all taxpayers by Presidential Decree No. 4,952 regardless of the economic activity carried out.
- Filing and Payment: A tax return must be filed, and the special tax contribution must be paid on a monthly basis, on the dates established in the special calendar published in Administrative Ruling No. SNAT/2024/000042 as per the last digit of the Tax Identification number (RIF) of each taxpayer. All of the formalities and technical specifications established in the official website of National Integrated Service for Customs and Tax Administration (SENIAT) must be duly and accordingly observed. In addition, all taxpayers must provide a quarterly report on the number of active workers on payroll in accordance with the technical specifications established in the aforementioned official website.
- Compliance control: The National Integrated Service for Customs and Tax Administration (SENIAT) is responsible for ensuring compliance of all formal and material duties concerning this special tax contribution and it may initiate any verification and/or inspection procedures as deemed necessary to fulfill such compliance responsibility.
- Penalties: A fine is established for those taxpayers who fail to submit the tax return or who comply their filing duties outside the deadline established by the tax administration. This fine implies multiplying the amount of the official exchange rate of the currency with the highest value published by the Central Bank of Venezuela, by 1,000. Omitting the payment of this special tax contribution, or delaying payment thereof, or incurring in criminal infringements in connection therewith, will be penalized in accordance with the Organic Tax Code (COT) and without prejudice to the establishment of any corresponding delay interest.
The law became effective on the date of publication in the Official Gazette, May 8, 2024.
For more information, contact a KPMG tax professional in Venezuela:
Alessandra Montagna | amontagna@kpmg.com
Alejandro Gomez | adgomez@kpmg.com
Lina Sangregorio | lsangregorio@kpmg.com