Tax
Law 822 income tax with a minimum definitive payment
The Ley de Concertación Tributaria (Ley 822) governs income tax, VAT and excise. Corporate tax is 30%, but taxpayers pay the higher of that or a pago mínimo definitivo on gross income, which makes the minimum tax decisive for low-margin businesses.
Key rules
- Corporate income tax is 30%, with reduced rates for smaller taxpayers on a sliding scale.
- The pago mínimo definitivo is 1% to 3% of gross income depending on turnover, and is payable if it exceeds the profit-based tax.
- VAT (IVA) is 15%, with exports zero-rated and a limited exemption list.
- Dividends and interest bear a 15% withholding; most non-resident payments are withheld at 15% to 20%.
- Employment income is taxed progressively from 15% to 30% above an exempt threshold of NIO 100,000.
Governing law
- Ley de Concertación Tributaria (Ley 822 de 2012)Income tax, VAT and excise.
- Código Tributario (Ley 562)Assessment, penalties and appeals.
In practice
The 2019 reform raised the minimum payment tiers and cut several exemptions, materially increasing effective rates. Free-zone entities retain preferential treatment but must maintain separate accounting to keep it.