Rate of 0% for payment of TLFT- Transactions involving Accounts in Foreign Currency
Decree No. 2,212 of January 28, 2016, issued by the President of the Republic, was published in Official Gazette No. 40,839 of January 29, 2016. Said Decree establishes a rate of zero percent (0%) for the payment of the Tax on Large Financial Transactions (TLFT) by the taxpayers and responsible parties subject to the application of the Law that created the tax, when they make transactions involving accounts in foreign currency in the National Financial System (Sistema Financiero Nacional – “SFN”), including the accounts with the Venezuelan Central Bank (“VCB”).
The Decree establishes the following:
1. A 0% rate for payment of the TLFT, when the taxpayers and responsible parties subject to this tax make transactions involving accounts in foreign currency in the SFN, including the accounts with the VCB, pursuant to the exchange rules issued by the VCB and the National Executive.
2. The Ministry of the Popular Power with competence over Banking and Finance and the Minister of State for Productive Economy are entrusted with the execution of the Decree.
The Decree became effective on February 1, 2016.
In order to access the Decree, please click here.
“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”