Expatriate tax ebook - Venezuela

Facts and figures
Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
All persons who enter Venezuelan territory under an employment contract must obtain previously an authorization from the Ministry of the Interior and Justice, after conformation from the Ministry of Labor.

Employment visas

The procedure for obtaining authorization of the Non-Resident Work (Transeúnte laboral) Visa must be started by the potential employer in Venezuela and completed by the foreign applicant in his/her home country. The Non-Resident Work Visa is granted for one year with multiple entries. Family visas must be requested for the worker after obtaining his/her own Non-Resident Work Visa.

The estimated time to get the Visa should be 2 or 3 months, but usually it takes more time.

The following workers are exempt from the work authorization: scientists, technicians, experts in consulting, training or academic work for a period not longer than 90 days; persons engaged in activities covered by cooperation and technical assistance agreements; media workers engaged in informative activities; and members of international scientific missions authorized by the Venezuelan State.

Tax returns and compliance
Expatriates must register with Single Tax Information Register (RIF) as soon as they qualify as taxpayers of a tax administered by the Venezuelan National Integrated Tax Administration Service (SENIAT).

Depending on Residency status, the following workers must file an income tax return:

• Resident workers who obtain a net global income over 1,000 tax units or gross income over 1,500 tax units per year.
• Non Resident workers who obtain income in the country, whatever its amount or period; and
• Non Resident workers, who have a fixed base in the country, on the attributable income from national or foreign sources.

The deadline for filing the return and pay any balance is from January 1 to March 31. Usually no extensions are available. Fines and interests could be applicable on delay payments.

Tax year
For workers the Venezuelan tax year runs from 1 January and ends the following 31 December.

For resident workers Income Tax is based on a progressive rate on income obtained, as shown below:

For non resident workers, income tax rate is a proportional 34%

Tax Unit:
Tax is assessed in “tax units,” which in 2011 had these equivalents:
1 Tax Unit = Bs. 76
1 Tax Unit = US$17.67(at official exchange rate Bs. 4.30/ US$1)

Sample income tax calculation

2011
VEB (Bs.) 

Note:
Tax unit for year 2010 Bs 76.

Information about Venezuela:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities