Tax
SENIAT administers 34 percent corporate tax and 16 percent VAT
SENIAT administers national taxes. Corporate income tax reaches 34 percent on the top bracket and VAT (IVA) is 16 percent, with an additional levy on foreign-currency transactions introduced by the Ley del IGTF in 2022. The Unidad Tributaria indexation mechanism has been overtaken by inflation, and municipal business taxes are significant.
Key rules
- Jurisdiction — National, with substantial municipal economic-activity taxes
- Deadline — Annual income tax return: within three months of financial year end
- Deadline — VAT: monthly
Governing law
- Ley de Impuesto sobre la Renta
- Ley del Impuesto al Valor Agregado
- Ley del Impuesto a las Grandes Transacciones FinancierasIGTF
In practice
The IGTF of 2022 taxes payments made in foreign currency or cryptocurrency at a rate set by the executive, a direct response to de facto dollarisation and an unusual instrument internationally. Municipal economic-activity taxes on gross receipts vary widely by municipality and can rival national taxes in practical weight for a local business.