In more detail
The Decree aims to promote geographic spaces with a special and extraordinary socioeconomic regime aimed at developing strategic economic activities in the sectors described in the Decree, and to encourage the participation of national and foreign, public and private legal entities for export in the SEZ of the state of Nueva Esparta. The most relevant aspects of the Decree are as follows:
1. Sectors and activities of the SEZ
The SEZ of the state of Nueva Esparta will be categorized in accordance to the economic sector, as follows:
- Industrial sector: includes production of goods, manufacturing, strategic agribusiness, export and re-export, aeronautics and energy in any of their categories
- Technological sector: includes the installation of technology parks for the development and production of telecommunications, computer and telematics systems, parts, components and pieces, computer applications, recycling of solid and technological waste, scientific research and development activities for outer space
- Non-financial services sector: includes the installation and production of logistics sectors for the provision and export of tourism, hotel, recreation and entertainment services.
2. Tax benefits or incentives
| Tax |
Benefit |
| Income Tax |
Reimbursement of 100% of the tax filed and paid for a period of four years, counted from the beginning of the execution of the economic activities in the SEZ |
|
Reimbursement of 100% of the tax as from years five and six, counted from the beginning of the execution of the economic activities if the export production level is maintained above 60%.
If the export level is lower, the refund will be of 25%.
|
| Reimbursement of 75% of the tax as from year seven, only if the export production level is maintained above 60%. |
| Accelerated depreciation of machinery, equipment or infrastructure destined to production processes provided for in the Economic Activity Agreement.3 |
|
Additional deduction to the income to be declared of 50% of the contributions made by concept of gifts or donations in the taxable year for the construction, operation and development of centers of education, research, promotion and integral development of the human resources that participate in the productive activities of the SEZ.
This deduction may not exceed 10% of the amount of its Net Profit.
|
| Custom tax |
Reimbursement of the custom duties for ten years, counted as of the signing of the Economic Activity Agreement for the importation of all those inputs, raw materials, parts, pieces, machinery or components that are imported from abroad for the development of goods and services in the SEZ. |
| Reimbursement of 100% of the tax for two years as from the signing of the Economic Activity Agreement for the importation of materials necessary to build the infrastructure and buildings required for the development of its productive processes. |
| Reimbursement of 100% of the tax for one year, counted from the signing of the Economic Activity Agreement for the importation or adaptation of tourism projects, as long as such equipment or goods are not produced or assembled in the country. |
| Value Added Tax (VAT) |
VAT reimbursement for those persons who carry out export activities; the refund will be made in legal currency (VEB). |
| Temporary Admission for Active Improvement (TAAI) |
Those entities who import inputs, raw materials, parts or pieces, that due to their nature or urgency are essential to install and start operations of their project, may apply for the TAAI tariff benefit. |
| Additional benefits |
Individuals and legal entities participating in the SEZ will pay a preferential rate for the use of port logistics services related to the export process of the goods produced. |
| The National Executive may implement additional benefits to those established in the Decree for the SEZ of Nueva Esparta when the development of the economic activities or the social, labor, commercial, tax, educational or environmental conditions make it necessary, which will be implemented through subsequent decrees that will be annexed to the creation or adaptation decree, as the case may be. |
3. Relevant considerations of the Decree
- For the development of tourism activities of the non-financial sector (item 1.c above), individuals may enjoy benefits and special conditions granted by the governing body in this matter. However, from an income tax perspective, they will not accumulate the benefits established in the Decree with those granted by said governing body.
- When the individuals that participate in the SEZ have an export level of less than 60% of their production as of the seventh year, they will cease to be beneficiaries of the benefits, guarantees and tax benefits established in the Decree.
- If the beneficiaries of the SEZ fail to comply with any of the performance requirements, goals, committed investments or contracted obligations derived from the provisions of the Decree or the respective Economic Activity Agreement, they will cease to be beneficiaries of the benefits, guarantees and tax incentives established in the Decree.
Please do not hesitate to contact us in case you require further details or explanation about the general aspects highlighted in this alert.
Spanish version
1 Organic Law of Special Economic Zones, published in the Official Gazette No. 6,710 on 20 July 2022. Background: "Venezuela: Domestic and foreign investment opportunities in special economic zones". For more information click here.
2 Decree No. 4.884 that creates the Special Economic Zone of the state of Nueva Esparta, published in Official Gazette No. 6,769 of 29 November 2023.
3 The legal entities, national or foreign, public, private, mixed or communal, that wish to establish themselves in any of the SEZs must subscribe an Economic Activity Agreement with the Superintendence of SEZs.
