Taxation in Venezuela.
Before setting the scope which is imposed as a general rule, it is important to identify what referred to the tax, because taxes are a kind of tribute. In this regard, the jurisprudence has identified tribute as a cash benefit, mandatory, required by the state under its power and obligation which gives rise to multiple legal relationships . Within this general concept of tribute have distinguished three types of service: a) taxes; b) rates; c) contributions. Dino now at work Jarach Public Finance and Taxation, makes a broader conception of the tax, establishing it as follows: a) The rate, b) the special contribution c) called para-fiscal resources, d) tax e) the royalties from the public sector; f) loans forced.
The tax is the most important expression of the taxing power of the state, one in which more typically manifests its sovereignty in the financial field. The property tax in respect of other taxes is based on the destination of income, which is to meet the general expenses of the state, without the payment of the same resulting in a particular advantage to anyone, this is not that taxpayers receive any consideration in exchange for, or materializing about them a certain action by the public body concerning him individually. Instead rates are fees that the state gets for the provision of certain services, such as mail or urban waste. Contributions, meanwhile, are services charged by the state for work or services performed on behalf of the community and of which the taxpayer benefits indirectly.
addition to these three types of taxes, there are the so-called para-fiscal contributions, in which the state requires a cash benefit to individuals to fund social security costs.
constitutional and legal norms governing the taxation system in Venezuela.
The income tax is regulated by Articles 133, 316 and 317 of the Constitution. These constitutional provisions point to the duty incumbent upon every citizen to help support the state's general expenses, as well as point out the limits or principles that should govern the state in exercising its power of taxation, which establish that taxes must be fixed in the ability to pay attention to each one (principle of proportionality), that they should have a general (first overall); and those that must be expressly established by law (principle of legality).
General obligations
1. Single Registration in the Tax Information (RIF) 30 days following the constitution or start-up, whichever comes first.
2. RIF Update every 3 years.
3. retention agents by inclusion in the RIF within the first month of being required to make the first withholding.
4. Inform the tax authorities regarding changes:
4.1. Directors and / or Administrators
4.2. fiscal Address: 20 calendar days following
4.3. Company Name
4.4. financial Amendment
4.5. main activity, and cessation of activities
5. Display a copy of the RIF in a visible place office or establishment.
6. Request authorization to change the fiscal year.
7. Record the number of RIF in:
7.1. Bill
7.2. who sign contracts
7.3. Applications or documents sent to government agencies
7.4. books and special books required
7.5. advertisements, brochures, packaging, etc..
7.6. Other cases
8. Indicate name, address fiscal and RIF of the shareholders in the book of shareholders.
9. For exporters entered in the National Register of Exporters.
10. Carry books and records and special Castilian language and currency. Receipt of this information for the deadlines.
11. Request permission to keep accounts in foreign currency.
12. Allow access to officials (audits)
13. Compensation Notice of tax credits within 5 working days after the operation.
14. Notice of assignment of tax credits within 3 working days after the operation.
15. present the statements in the receiving office of national funds.
Obligations of Income Tax.
1. Carry in an orderly and compliant with the books and records.
2. Keep the receipts for the period of limitation for tax liabilities
3. Register Asset Register updated.
4. Perform regular inflation adjustment to determine the taxable net income tax.
5. Submit definitive statement of income and payment of Income Tax within 3 months after completion the taxable year.
6. Display the definitive statement of income of the previous year.
7. Estimated Income Tax Filing statement within the first 6 months of having completed the previous tax year:
8. Prepayments of tax, from the sixth month following the close of the year.
9. Pay up to six portions of equal amounts, unlike in the first portion.
10. Make transfer pricing study and present information return on transactions between related parties, which must be submitted in the month of June following the close of the fiscal year (PT-99).
11. Present in the same manner and time specified above, informative statement investment in low tax countries.
12. Request for approval prior to deduction of administrative costs and management: permanent establishments of foreign companies.
13. Make the tax on the dividend (34% proportional tax) for those cases where accounting income exceeds the net taxable income is taxed.
14. Invoicing and documents that support income, costs and expenses, according to the rules on Printing and Issuance of Bills force VAT.
15. Request for authorization for stockpile destruction, for the purposes of the merits of the deduction.
16. Keep on the tax domicile or establishment, monthly reporting of detailed records of incoming and outgoing inventory and withdrawals and consumption of goods and services.
17. Carry additional books inflation adjustment.
18. Require sellers or service providers invoices and other documents equivalent.
