✅IGTF Exemption
Tax benefits
Background
In the Extraordinary Official Gazette of the Bolivarian Republic of Venezuela No. 6,689, dated February 25, 2022, Decree No. 4. 647, whereby debits generated by the purchase, sale and transfer of custody in securities issued or guaranteed by the Republic or the Central Bank of Venezuela are exempted from payment of the tax on large financial transactions, as well as debits or withdrawals generated by the purchase, sale and transfer of custody in securities issued or guaranteed by the Republic or the Central Bank of Venezuela, as well as debits or withdrawals related to the settlement of the capital or interest thereof and securities traded through the stock exchanges, made in currency other than the legal tender in the country or in cryptocurrencies or cryptoassets other than those issued by the Bolivarian Republic of Venezuela, regulation which was in force for one (1) year.
Legal Basis
In February, it was published in the Official Gazette of the Bolivarian Republic of Venezuela No. 42,575, dated February 23, 2023, Decree No. 4. 783, whereby debits generated by the purchase, sale and transfer of custody in securities issued or guaranteed by the Republic or the Venezuelan Central Bank are exempted from the payment of the tax on large financial transactions, as well as debits or withdrawals generated by the purchase, sale and transfer of custody in securities issued or guaranteed by the Republic or the Venezuelan Central Bank, as well as debits or withdrawals related to the settlement of the capital or interest thereof and securities traded through the stock exchanges and agricultural stock exchange, made in currency other than the legal tender in the country or in cryptocurrencies or cryptoassets other than those issued by the Bolivarian Republic of Venezuela, rule that will be effective as of February 26, 2023.
Exempted stock exchange operations
The IGTF exoneration decree covers two (2) categories:
Debits generated by the purchase, sale or transfer of securities issued or guaranteed by the Republic or the Central Bank of Venezuela will be exempt from the tax on large financial transactions.
Debits or withdrawals related to the settlement of capital or interest of such securities, as well as securities traded through stock exchanges and agricultural stock exchange, will also be exempt if they are made in a currency other than the legal tender in the country or in cryptocurrencies or cryptoassets other than those issued by the Bolivarian Republic of Venezuela.
These exonerations must comply with a series of requirements stipulated in the regulation.
Articles 1 and 2, 8 of Decree No. 4,783, dated February 23, 2023.
Other Transactions not subject to IGTF
Exchange transactions carried out by individuals and legal entities.
Payments in bolivars with national and international debit or credit cards from foreign currency accounts, through payment points duly authorized by the competent authorities, except those made by special taxpayers.
Payments in currency other than the legal tender in the country or in cryptocurrencies or cryptoassets other than those issued by the Bolivarian Republic of Venezuela, made to individuals, legal entities and economic entities without legal personality that are not qualified as special taxable persons.
Remittances sent from abroad, through institutions authorized for such purpose.
Article 5 of Decree No. 4,783, dated February 23, 2023.
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