Recently, the following were enacted: (i) the Law on the Protection of Social Security Pensions, published in Official Gazette No. 6,806 Extraordinary dated May 9, 2024; (ii) Decree No. 4,952, which establishes the amount of the special contribution provided for in the aforementioned Law, published in Official Gazette No. 42,880 dated May 16, 2024; and (iii) Administrative Ruling No. SNAT/2024/000042, issued by the National Integrated Service of Customs and Tax Administration (SENIAT), published in Official Gazette No. 42,881 dated May 17, 2024 (the “Ruling”).
Key Aspects of the Law:
- Purpose: To establish transparent and participatory mechanisms for the protection of social security pensions against the impact of coercive measures adopted against the country.
- Definition of Pensions: Social security pensions are understood as monetary benefits or payments due to old age, disability, incapacity, or survivorship as provided for in the special social security law.
- Public Policy: The provisions of the Law on the Protection of Social Security Pensions are of public order and may not be waived by private agreements. In case of doubts regarding the interpretation of the Law, the interpretation that most favors the protection of social security pensions shall apply.
- Scope of the Obligation: A special contribution of up to 9% of the total payments made by the taxpayer to workers in the form of salaries and bonuses is established.
The minimum basis for this contribution may not be lower than the monthly minimum income set by the Executive, which is USD $130 per month, applicable to the public sector. This contribution will be considered a deductible expense for the purposes of the final Income Tax declaration.
- Timing of the Special Contribution Payment: The special contribution shall be made monthly.
- Recipient Entity: The National Integrated Service of Customs and Tax Administration (SENIAT) is responsible for collecting the contribution and for establishing formal obligations, and conducting verification, audit, and assessment procedures for the special contribution.
- Obligated Parties: The special contribution applies to legal entities as well as any other type of society, including public or private entities, irregular or de facto partnerships, whether domiciled in the Republic or not, that conduct activities within national territory.
- Penalties: Those who fail to file the special contribution return or who do so after the established deadline will be sanctioned with a fine equivalent to one thousand (1,000) times the official exchange rate of the highest-valued currency published by the Central Bank of Venezuela.
- Entry into Force: The Law entered into force upon its publication in the Official Gazette, that is, on May 8, 2024.
For more information, contact us: info@central-law.com
Article written originally for Andersen Newsletter,