Accounting Rules

Tax Year: The fiscal year begins on January 1st and ends on December 31 of the same year.
Accounting Standards: The Venezuelan accounting practice follows the American model quite accurately. The Venezuela Public Accountants Federation (FCCPV) advocates the adaptation of the principles of accounting generally accepted (PCGA) in countries following the International Standard Commitee norm (IASC).
Accounting Regulation Bodies: FCCPV
Accounting Reports: To realize a financial analysis, companies have to make out a balance sheet and a profit and loss account which will be controlled and reported to the "Commercial Court" by an independent auditor.
Publication Requirements: All commercial companies of Venezuela have to establish anuually some accounting documents:
- The account book
- The stocking account
- The account of expenditures analysis
- The stocking evolution.
Professional Accountancy Bodies: Auditing firms listed by region.
Certification and Auditing: The balance sheet and the profit and loss account made out by the company must be controlled by an auditor (comisario) appointed by the shareholders. The auditor must be a licensed accountant, economist or business administrator.
You can consult an external auditor: Deloitte, KPMG, Ernst & Young, PricewaterhouseCoopers.
Accounting News: De Gerencia: Journal of management and negotiation
IAS Plus

Tax Rates

Consumption Taxes

Nature of the Tax: VAT: value-added tax
Tax Rate: Standard rate:12%.
An additional 10% can be charged on certain luxury goods, including high-value vehicles and jewellery.
Reduced Tax Rate: Between 8% and 10%.
Are exempted exports, services of banks, financial institutions and leasing companies, insurance services, the sale of shares and bonds, domestic passenger transport, basic foodstuffs, farming machinery, ships and some education and health services.
Other Consumption Taxes: Municipal tax: rate varies according to the industrial or commercial activity concerned. Tax on subsidiary profits, taxes on oil exploitation, timber rights, taxes on the surface of non-exploited soils.

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Corporate Taxes

Company Tax: Progressive rate up to 34%. The system of levy is expressed in tax units that specify tax rates. The value of a tax unit is 76 VEB.
Capital Gains Taxation: The levy of capital gains is included in the corporate tax.
Main Allowable Deductions and Tax Credit: Deductions are possible for: depreciation, net operating losses, payments to foreign affiliates, taxes, charitable contributions.
Other Corporate Taxes: Payroll tax, capital duty, real property tax, social security contributions, stamp duty, R&D contributions, municipal tax.

Individual Taxes

Tax Rate

Income tax	Income of resident individuals expressed in tributary units is subjected to tax at progressive rates. The value of a tax unit is 55 VEB.
Up to 1,000 units	6%
1,001 to 1,500 units	9%
1,501 to 2,000 units	12%
2,001 to 2,500 units	16%
2,501 to 3,000 units	20%
3,001 to 4,000 units	24%
4,001 to 6,000 units	29%
Beyond 6,000 units	34%

Allowable Deductions and Tax Credit: Legal deductions include the following:
- school tuition and costs for dependants younger than age 25,
- health-insurance premiums,
- medical, dental and hospitalisation costs,
- interest on loans for housing purchase or expansion up to 1,000 units,
- house payment or rental costs up to 800 units per year.
A standard deduction of 774 units may be taken.
Each taxpayer may also deduct 10 units per person and per child.
Special Expatriate Tax Regime: It concerns especially housing, vehicle and relocation allowances, payment of education expenses, cost-of-living and hardship allowances.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: See the list of the conventions signed by Venezuela.
Withholding Taxes: Dividends: 0/34%, Interest: 4.9/34%, Royalties: 34%.

Sources of Fiscal Information

Tax Authorities: SENIAT
Other Domestic Resources: Deloitte Venezuela: all national taxes

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Intellectual Property

National Organizations: Venezuela is a member of the Paris Convention (for industrial property) and of the Berne Convention (authors copyrights). It is however very difficult to implement control in this country, to protect patents, trademarks, designs etc.. It is therefore preferable to register these goods and services within the country. It should also be noted that the country is not a signatory to the Rome Convention (which deals with the protection of artists and interpreters). For more information, please consult the SAPI: Service Autonome de la Propriété Intellectuelle.
Regional Organizations: Venezuela is a member of WIPO (World Intellectual Property Organization) and a member of the WTO. For more informations contact the Ministry of Justice.

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent Decision No. 486 of September 14, 2000 of the Commission of the Cartagena Agreement on the Common Provisions on Industrial Property	20 years
Trademark Decision No. 486 of September 14, 2000 of the Commission of the Cartagena Agreement on the Common Provisions on Industrial Property	10 years, renewable for consecutive periods of 10 years
Design Industrial Designs .	10 years
Copyright Decision n° 351 of September 17, 1993 of the Commission of the Cartagena Agreement on the Common Provisions on Industrial Property	Protection extends to 50 years following the author's death	WIPO Copyright Treaty
Industrial Models Industrial Designs .	5 to 10 years

Legal Framework

Independence of Justice: Judiciary power is not independent in Venezuela. It is highly politicized and undermined by the chronic corruption.
Equal Treatment of Nationals and Foreigners: A foreigner cannot hope for an equal and fair trial. The same is true for certain socio-cultural cathegories. Together, the fact of being white, rich and having an attorney who knows the wheels of the system well, is still the best defense.
The Language of Justice: The judicial language used in the country is Spanish.
Recourse to an Interpreter: No.
Sources of the Law and Legal Similarities: The main source of the law is the constitution of 1999. Federal law is applicable uniformly across the country. However, municipalities are the fundamental units of local government in Venezuela and can have some local powers, such as raising taxes, etc.
The country does not adhere to the ICJ (International Court of Justice) juristiction.
The country is a member of the OAS : Organization of American States. It is also an associated member of MERCOSUR and of CSAN: Community of South American Nations.
Checking National Laws Online: Venezuela Legislation
Venezuela Legislation

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Standards

National Standards Organizations: FONDONORMA, Funds for Normalization and Quality Certification
SENCAMER, National Autonomous Service for Standardization, Quality, Metrology and Technical Regulations
COVENIN, Venezuelan Industrial Norms Committee
Integration in the International Standards Network: The structure managing Venezuelan standardization and norms is composed of two entities: the FONDONORMA (Funds for Normalization and Quality Certification), a private non-profit association, and another body of the Ministry of Commerce, the SENCAMER. This new organism is a member of the ISO (International OrganizatIon of Standardization), of COPANT (Panamerican StandarDs Commission) and of the IQ Net (International Certification Network).

Some importers have met some difficulties: no foreign standard has been recognised and hence Venezuela makes it compulsory to obtain a certificate.
Classification of Standards: The COVENIN has prepared more than 300 compulsory standards as much for the domestic market as for the import market. The institution itself does not exist anymore (replaced by FONDONORMA), but the norms are still referred to as the "Norms COVENIN". FONDONORMA issues a NORVEN seal of quality to local manufacturers for specific products and services.
Online Consultation of Standards: Consult the standards on COVENIN, FONDONORMA.
Certification Organizations: FONDONORMA

Business Practices

General Information: Kwintessential , Cross-cultural solutions website
Opening Hours and Days: Offices open from 8 AM to 12.30 AM and from 2 PM to 5.15 PM. Weekly days off: Saturday and Sunday.
Banking hours: 8:30 AM to 3:30 PM
Shop opening hours: in general from 9:30 AM to 7 PM or from 11 AM to 10 PM (Monday to Saturday).

Public Holidays

New Year's Day	January 1
Carnaval	February 4 or 5 : date changes according to the year
Holy Thursday and Friday	March 20 and 21
Declaration of Independence	April 19
May Day	May 1
The Battle of Carabobo Anniversary	June 24
Independence Day	July 5
Simon Bolivar's Birthday	July 24
Discovery of the Americas Day	October 12
Christmas	December 25

Periods When Companies Usually Close

School holidays	Month of August
Christmas holidays	From December 24 to January 4
Holy Week	End of March

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Venezuela: Business Environment