In detail
In accordance with Article 8 paragraph 6 of the Law for the Partial Reform of the Decree with Status, Validity and Force of Law on the Large Financial Transactions Tax, published in Official Gazette No. 6687 Extraordinary on 25 February 2022 ("LFTT Law"),2 the following are exempted from paying the LFTT: (i) debits that generate the purchase, sale and transfer of custody in securities issued or guaranteed by the Republic or the CBV, (ii) debits or withdrawals related to the payment of their capital or interest, and (iii) securities traded in different stock exchanges or the agricultural stock exchange. Said exemption applies for transactions made in the legal tender or in cryptoassets issued by the Republic.
The Decree exonerates the aforementioned transactions when they are made in a currency other than the legal tender.
Requirements
To obtain the LFTT exoneration, taxpayers must submit the following documents to the banks and other financial institutions:
- Document issued by the intermediaries authorized to carry out operations in the stock exchange, in which the following information is indicated:
- Number of the operation assigned by the stock exchange
- Securities traded
- Intermediary broker
- Amount of the transaction
- Purchaser of the securities, attached to the document supporting the transaction issued by the respective stock exchange
- Affidavit stating that the debit in the account or digital wallet is made exclusively to acquire securities or bonds issued or guaranteed by the Republic or the CBV, attached to the confirmation of the transfer of the securities, issued by authorized intermediaries.
Duty of notification
According to the provisions of the Decree, the national stock exchanges, the agricultural stock exchange and the authorized stock intermediaries must inform the Collection Management department of the National Integrated Service for the Administration of Customs Duties and Tax (SENIAT) of the accounts or wallets they will use to process transactions to acquire securities, declaring under oath that these accounts or wallets will be used solely for those transactions.
Loss of the benefit
In broad terms, the Decree establishes that beneficiaries who fail to comply with the obligations established in the Organic Tax Code and the LFTT Law will forfeit the exoneration benefit.
Non-exempted transactions
The Decree reiterates that the following transactions are not exempted from paying the LFTT, as established by the LFTT Law:
- Currency exchange transactions carried out by individuals and legal entities.
- Payments in Venezuelan Bolivars with national and international debit or credit cards from accounts denominated in foreign currency, through points of sale duly authorized by the competent authorities, except those made by special taxpayers.
- Payments in a currency other than the country's legal tender, made to individuals, legal entities and unincorporated economic entities that are not designated as special taxpayers.
- Remittances sent from abroad, through institutions authorized for this purpose.
We remain at your disposal should you require further details or explanations on the general aspects of the Decree that were highlighted in this alert and for any related queries.
Spanish version
1 Decree No. 4924, which exonerates the following from paying the LFTT: (i) debits that generate the purchase, sale or transfer of securities issued or guaranteed by the Republic or the CBV, (ii) debits or withdrawals related to the payment of their capital or interest, and (iii) securities traded in different stock exchanges or the agricultural stock exchange, made in a currency other than the legal tender, and which was published in Official Gazette No. 42823 on 21 February 2024.
2 Decree with Status, Validity and Force of Law on the Large Financial Transactions Tax, published in Official Gazette No. 6687 Extraordinary on 25 February 2022.
