Venezuela - Civil Law
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Venezuela taxes

Want to setup a company? This will tell you about tax laws in Venezuela for a LLC which is the most common legal entity in Venezuela.

Venezuela taxes corporate income, whether it is earned within the country or abroad. The established approximate tax rate for offshore income, from our research, and this is not personal tax advice, is 34%. The country may not have exemptions to bring income made internationally. Taxes are very high in Venezuela because Corporate Income Tax on a LLC entity is 34%. This ranks Venezuela as 162th overall in terms of CIT globally. LLCs may be also subject to surtaxes and income local taxes.

The value added tax (VAT) rate in Venezuela is 12.00%, that ranks Venezuela as 61st overall in terms of VAT taxation rate internationally. In terms of other taxation, an employer will contribute 27% to the equivalent of a social security fund and an employee will contribute 6%. The overall complexity of the tax system is high. This is measured by average time to comply with a country's labor tax requirements is as it is 288hours. Contributing to this is the number of yearly labor tax payments, which is 2 in VE.

Thin cap restrictions are officially enacted. Thin capitalisation refers to any type of requirements on a business and the debt-to-asset ratios. A dividend withholding tax is levied at a flat rate of 34% to dividends paid to reidents. Dividends received from foreign entities are taxable income and subject to 34% tax. A dividend is a distribution of a portion of a company profit, decided by the board of directors, to a class of its shareholders. Dividends can be one of the following cash payments, shares of stock, or other property. Capital Gains are considered business ordinary income and subject to CIT. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding effective tax rate is estimated at 32.3%. Which means that the tax authorities expects LLC's to pay tax on at least 32.3% of interests remitted abroad, unless interests are paid to a foreign financial institution, which may be exempt. The dividends withholding tax rate is 34%. This should be interpreted that the taxman expects LLC's to withhold 34% of dividends paid abroad. The royalties witholding effective tax rate is 30.6%. This means that the tax authorities expects companies to withhold 30.6% of royalty payments to non-residents. Withholding tax rates may be reduced under a tax treaty.
There is a capital duty. There is no known tax on wealth in Venezuela. There are inheritance, real property and transfer taxes in Venezuela. There are popular and well known R&D initiatives that provide tax incentives here.

The above is not tax or legal advice for your individual facts and circumstances. can refer you to a lawyer in Venezuela who will advise you. Ready to get started? Click the free consultation button above.

It takes approximately 120 hours to file and prepare documents for a Venezuela Civil Law.
The corporate tax is approximately 34% which is 162 in the world.

Owners of a company in Venezuela are not allowed to carry back a loss and may be allowed to carry forward a loss for 3 years.

The vat rate in Venezuela is 12% which ranks 61 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
27Tax treaties
34%Offshore Tax
34%Corp rate
-Loss carryback years
120Corporate time
12%VAT rate
34%Capital gains
NoAEOI planned

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We can help you form a company in Venezuela. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Venezuela, which is required by law.

Venezuela Tax Treaties

CountryTypeDate signed
South Korea
DTC 2006-06-28
Trinidad and Tobago
DTC 1996-07-31
Czech Republic
DTC 1996-04-26
DTC 1997-10-29
DTC 1997-02-06
DTC 1998-12-03
DTC 1996-04-23
DTC 2001-04-17
United States
DTC 1999-01-25
DTC 1996-12-20
DTC 1997-02-27
United Kingdom
DTC 1996-03-11
DTC 2003-12-22
DTC 1991-05-29
DTC 1993-04-22
DTC 1995-02-08
DTC 1998-12-11
DTC 1992-05-07
DTC 2003-08-04
DTC 2001-07-10
DTC 1993-09-08
United Arab Emirates
DTC 2010-12-11
DTC 2006-08-28
DTC 1990-06-05
DTC 2005-01-14
DTC 2006-05-12
DTC 2006-07-28

Country Info

National Flag of
República Bolivariana de Venezuela (spa)
Area Code
South America
Native Languages