PDVSA, its subsidiaries and mixed companies (domiciled or not in Venezuela) are subject income tax liability at a 50% rate, which applies to income derived from hydrocarbon exploitation activities and any other activity, even if not related to hydrocarbons. In comparison, the ordinary corporate rate is 34%. Presidential Decree No. 3.569, exonerated from income tax liability the territorial and extraterritorial income obtained by PDVSA, its affiliates and mixed companies deriving from hydrocarbon production activities. The exoneration entered into force on August 2, 2018 and will only apply to the fiscal year coincident with calendar year 2018.
The Income Tax Law will apply for determining taxable and exonerated income, costs and expenses. The common costs and expenses applicable to taxable and exonerated income must be prorated.
The beneficiaries of the exoneration must: (i) file an annual taxable and exonerated income tax return under the Income Tax Law, its Regulation and any other applicable statute; and (ii) comply with the material and formal obligations established in those statutes. The beneficiaries will lose the exoneration in case of non-compliance.
 Since 2001 in Venezuela the execution of hydrocarbons exploration and exploitation activities is reserved to PDVSA, its subsidiary companies and mixed companies in which the Venezuelan State has a decisive participation (Hydrocarbons Law, Official Gazette No. 37.323 of November 13, 2001).
 Official Gazette No. 41.452 August 2, 2018.
 Income derived from other activities (e.g., financial income) will remain subject to income tax liability according to the standard regime.