- The reform to the Law on Tax on Large Financial Transactions was enacted on February 25, 2022 | Main photo: EFE
President Nicolás Maduro signed a decree that eliminates the Tax on Large Financial Transactions (IGTF) in bolivars, which charged 2% on transactions in local currency.
“I am signing the decree to eliminate it by the very fact2% of the IGTF. We are already in a position to do so and what needs to be increased is the efficiency in the collection of other taxes that exist,” Maduro declared on July 12.
The president said that he had been offered to reduce the IGTF by 50% this year and another 50% in 2025.
What does the IGTF payment consist of?
The IGTF was approved on December 30, 2015, when it was published in the Official Gazette number 6,210. However, on February 25, 2022, a reform to this law was enacted to collect taxes on foreign currency transactions, due to the growing use of foreign currency in the country.
The Partial Reform Law of the Decree Law on Tax on Large Financial Transactions was enacted on February 25, 2022 in Official Gazette number 6,687.
The following persons are required to pay the IGTF contribution:
– Natural persons who make payments in currency other than the bolivar or in cryptoassets other than those issued by the Central Bank of Venezuela (BCV).
– Legal entities that make payments in currency other than the bolivar or in cryptoassets other than those issued by the BCV.
– Entities without legal personality (for example: unclaimed estates, joint property, de facto companies) that make payments in currency other than the bolivar or in cryptoassets other than those issued by the BCV.
Before the reform, this tax applied to all transactions in bolivars carried out by special taxpayers designated by the National Integrated Service of Customs and Tax Administration (Seniat), known as “special taxpayers.”
Subsequently, individuals and legal entities were forced to pay this tax on certain foreign currency transactions. As of the reform enacted in February 2022, the following transactions were taxed:
– Payments made in foreign currency or crypto assets other than those issued by Venezuela through the national banking system and under the parameters established by the BCV.
– Payments made in foreign currency or crypto assets other than those issued by Venezuela to special taxpayers, without intermediation of the banking system (cash, Zelle, among others).
– Foreign exchange transactions carried out by authorised operators (banks and exchange offices) are excepted.
The Partial Reform Law of the Decree Law on Tax on Large Financial Transactions stipulated the collection of a percentage on transactions in bolivars and foreign currencies carried out by taxpayers:
– 2% on debits for operations carried out in bolivars as long as the subject carrying out the operation is a special taxpayer.
– 3% on foreign currency transactions processed within the national banking system.
– 3% on foreign currency transactions that are not processed in the national banking system.
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2024-07-12 23:16:49
