ORGANIC LAW OF SPECIAL ECONOMIC ZONES
The Organic Law of Special Economic Zones was published in Official Gazette No. 6.710 Extraordinary of July 20, 2022 (OLSEZ). It repeals the provisions on special economic zones of the Law of Integral Regionalization for Socioproductive Development of the Homeland of November 2014.
This Law regulates the creation, organization, operation, administration, and development of the Special Economic Zones (SEZ) and their economic, tax, or other incentives, applicable to national or foreign, public, private, mixed, and communal legal persons that participate in the SEZ declared of strategic character, of general interest, and for public purposes.
The SEZ will be created by the President of the Republic through a Decree approved at Cabinet Council and later authorized by the National Assembly. The National Superintendence of Special Economic Zones (NSSEZ), assigned to the Vice-presidency of the Republic and based in Caracas, will be in charge of the control and administration of the SEZ. The NSEEZ will be directed and administered by a Board of Directors formed by the Superintendent and six principal members with their respective alternates, who may be freely appointed and removed by the President of the Republic.
Each SEZ will have a Sole Authority, designated by the President of the Republic, in charge of executing the guidelines of the policies, plans, and projects prescribed in the Decree of creation of the SEZ. It will be answerable to the NSSEZ for the progress and fulfillment of its functions.
The SEZ are limited to the development of the following activities (i) industrial activities, (ii) technological activities, (iii) financial services, (iv) tourist services, hotel industry, recreation, and entertainment, (v) primary agribusiness production of the agricultural, livestock, fishing, and aquaculture sectors for food sovereignty of the country and with exportation purposes, and (vi) any other sector or activity that is considered necessary for the development of the country.
The legal persons that execute projects for participating in the SEZ under the relevant economic activity agreement executed by them will be benefited by the incentives prescribed in the OLSEZ, which may be summarized as follows:
1. Tax and customs incentives according to the criterion determined by the National Executive in the Decree of creation of the SEZ and with the maximum limit established in a Resolution of the Ministry with jurisdiction over economy, finance, and foreign trade matters:
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- Draw Back prescribed in the Regulations on Regimes of Release, Suspension, and other Special Customs Regimes, except for end consumer goods, goods that displace national production, and goods that affect the objectives of the import substitution strategy.
- Tax refund of other national taxes
- Benefits of the customs legislation relating to temporary admission for active assembly (admisión temporal para perfeccionamiento activo) in order for the importation of supplies, raw materials, parts or pieces that are basic and essential for performance of the economic activity in the SEZ.
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2. Single-window system for processing the requirements for functioning and operating in the SEZ.
3. Educational incentives: the NSSEZ will create education and research centers for the integral training of the human resource required for the productive activities developed in the SEZ.
4. The Ministry with jurisdiction over tourism matters must include the tourist-oriented SEZ in its investment promotion plans in order to attract national and foreign investors in this area.
5. The bank entities authorized to develop financial services in the SEZ will have an exceptional and preferential tax regime according to the rules issued by the Ministry with jurisdiction over economy, finance, and foreign trade matters.
6. The economic activity to be developed in the SEZ will have a system of free convertibility of currency and financing plans of bank institutions in accordance with the rules issued by the Venezuelan Central Bank and the Ministry with jurisdiction over economy, finance, and foreign trade matters.
The Law will become effective upon publication in the Official Gazette.
In order to access the Law, please click here.
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