New Obligations for Legal Entities Qualified as Special Taxpayers in Venezuela
New obligation for legal entities qualified as special taxpayers in Venezuela to file a Net Worth Informative Return
The National Integrated Service of Customs and Tax Administration (Revenue Service) issued Administrative Order No. SNAT/2017/00031 (Order 0003), which obliges legal entities qualified by the Revenue Service as special taxpayers (Taxpayers) to file a net worth informative return (Return). Order 0003 considers net worth to be the aggregate of the Taxpayers' assets and economic rights. This definition excludes the Taxpayer's liabilities, differing from the accounting and financial definition of net worth. Therefore, the Return, in substance, establishes an obligation to file an informative return of the assets of the Taxpayer. Order 0003 entered into force on 16 January 2017. The legality of the Order is very questionable, because only laws passed by the National Assembly and regulations issued by the President can establish the obligation and conditions of filing a tax return.2
Taxpayers must file the return following the terms and conditions established in the Revenue Service's Webpage. Likewise, Taxpayers must file the Return before 30 May 2017.
It is not absolutely clear which would be the sanctions applicable to the Taxpayers for not complying with Order 0003. Under one position, if the Taxpayer does not file the return or files it with a delay longer than a year it would be sanctioned with closure of the Taxpayer's offices, premises or establishments for 10 continuous days and a fine of 450 Tax Units (nowadays equivalent to VEB 79,650.00).3 If the Taxpayer files an incomplete Return or files the Return with a delay of less or equal to one year, it will be sanctioned with a fine of 300 Tax Units (nowadays equivalent to VEB 53,100.00).4 Under a second position, if the Taxpayer does not file the return or files it late, it would only be subject to a fine of 150 Tax Units (currently equivalent to VEB 26,550).5
1Official Gazette No. 41,075 of 16 January 2017.
2Organic Tax Code, Art. 155(1)(e).
3Organic Tax Code, Art. 103(1) and 108.
4Organic Tax Code, Art. 103(3) and 108.
5Organic Tax Code, Art. 103(2) and (4) and 108.