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REACTIVATION OF TOLL COLLECTION STATIONS IN VENEZUELA

In Venezuela the power to create and administer tolls on national and state freeways and highways corresponds to the States. The Ministry of the People's Power for Defense and for the Infrastructure, however, had eliminated toll collections in all stations on 15 January 2008.[1]

The Ministry of the People's Power for Transportation issued Resolution No. 032,[2] through which ordered the activation of the toll collection stations in all nationwide roads. The Resolution entered into force on 2 May 2018.

Resolution No. 032 established that (i) Governors are authorized to take the necessary steps to reactivate and start-up the collection stations; and (ii) collection stations may only charge the entry toll into the federal entity, while the exit will be exonerated from toll payment.

The Ministry of the People's Power for Transportation must issue the supplementary rules to implement Resolution No. 032.
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[1] Official Gazette No. 38,850 of 15 May 2008.
[2] Official Gazette No. 41,388 of 2 May 2018.

 

NEW VENEZUELAN INCOME TAX EXONERATION ON THE INCOME OBTAINED BY THE HOLDERS OF THE BONDS ISSUED BY BANDES WITH MATURITY IN 2024

In 2017 the Venezuelan Bank of Economic and Social Development ("BANDES") issued bonds for Bs. 2,750,000,000,000,000,000,000 with maturity in 2022. In 2017, the President of the Republic exonerated from income tax liability the income obtained by the holders of those bonds.[1] In April 2018, BANDES issued new bonds for Bs. 15,000,000,000,000,000,000 with maturity in 2024.[2] Presidential Decree No. 3,402[3] exonerated from income tax liability the income obtained by the holders of the new bonds, which includes interest and capital gains. The exoneration entered into force on 8 May 2018, applies to fiscal year 2018 and will be effective until 8 May 2023.

Taxpayers must comply with the provisions established in the Income Tax Law, its Regulations and other rules regarding (i) the income, costs and deductions of taxable income for the determination of the exonerated income, (ii) the filing of the annual return of the global net taxable and exonerated income, and (iii) other requirements established by the Income Tax Law.

Taxpayers will lose the exoneration if they fail to comply with the requirements established in the mentioned Decree or with the obligations and requirements established in the Income Tax Law, its Regulations and other applicable rules.
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[1]Presidential Decree No. 3,007, Official Gazette No. 41,204 of 1 August2017. [Link to alert]
[2]http://elestimulo.com/elinteres/entes-publicos-aumentan-emision-de-bonos-de-deuda-interna consulted on 24 May 2018.
[3]Official Gazette No. 41,392 of 8 May 2018.

 

OFFICIAL NOTICE OF VENEZUELA'S CENTRAL BANK REGARDING WITHHOLDING OF MUNICIPAL AND STATE TAXES

The Venezuelan Central Bank ("VCB") in coordination with the National Executive, issued an Official Notice,[1] which:

  1. Informed the State and Municipal Tax Administrations that only if they have the authorization of the VCB they may establish modalities for the withholding of state and municipal taxes, through the acquisition services during the processing of payments with credit, debit and prepaid cards and other financing or electronic payment cards through Point of Sale Terminals.
  2. Instructed the State and Municipal Tax Administrations to immediately cease the withholding activities of state and municipal taxes, with the characteristics stated in sub-paragraph (i) that have not been authorized by the VCB.

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[1] Official Gazette No. 41,401 of 21 May 2018.

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