Want to setup a company? This will tell you about tax laws in Venezuela for a LLC which is the most common legal entity in Venezuela.
Venezuela taxes corporate income, whether it is earned within the country or abroad. The established approximate tax rate for offshore income, from our research, and this is not personal tax advice, is 34%. The country may not have exemptions to bring income made internationally. Taxes are very high in Venezuela because Corporate Income Tax on a LLC entity is 34%. This ranks Venezuela as 162th overall in terms of CIT globally. LLCs may be also subject to surtaxes and income local taxes.
The value added tax (VAT) rate in Venezuela is 12.00%, that ranks Venezuela as 61st overall in terms of VAT taxation rate internationally. In terms of other taxation, an employer will contribute 27% to the equivalent of a social security fund and an employee will contribute 6%. The overall complexity of the tax system is high. This is measured by average time to comply with a country's labor tax requirements is as it is 288hours. Contributing to this is the number of yearly labor tax payments, which is 2 in VE.
Thin cap restrictions are officially enacted. Thin capitalisation refers to any type of requirements on a business and the debt-to-asset ratios. A dividend withholding tax is levied at a flat rate of 34% to dividends paid to reidents. Dividends received from foreign entities are taxable income and subject to 34% tax. A dividend is a distribution of a portion of a company profit, decided by the board of directors, to a class of its shareholders. Dividends can be one of the following cash payments, shares of stock, or other property. Capital Gains are considered business ordinary income and subject to CIT. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.
The interest withholding effective tax rate is estimated at 32.3%. Which means that the tax authorities expects LLC's to pay tax on at least 32.3% of interests remitted abroad, unless interests are paid to a foreign financial institution, which may be exempt. The dividends withholding tax rate is 34%. This should be interpreted that the taxman expects LLC's to withhold 34% of dividends paid abroad. The royalties witholding effective tax rate is 30.6%. This means that the tax authorities expects companies to withhold 30.6% of royalty payments to non-residents. Withholding tax rates may be reduced under a tax treaty.
There is a capital duty. There is no known tax on wealth in Venezuela. There are inheritance, real property and transfer taxes in Venezuela. There are popular and well known R&D initiatives that provide tax incentives here.
The above is not tax or legal advice for your individual facts and circumstances. Incorporations.io can refer you to a lawyer in Venezuela who will advise you. Ready to get started? Click the free consultation button above.
It takes approximately 120 hours to file and prepare documents for a Venezuela Civil Law.
The corporate tax is approximately 34% which is 162 in the world.
Owners of a company in Venezuela are not allowed to carry back a loss and may be allowed to carry forward a loss for 3 years.
The vat rate in Venezuela is 12% which ranks 61 in the world.
Thin capitalization rules are not in effect.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Venezuela, SAREN. Shareholders are not disclosed in the SAREN.
Typically companies take 25 weeks to setup and there are 1 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Venezuela is a ok option and have given it a score of 41 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Venezuela. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Venezuela, which is required by law.
We can help you with your incorporations needs for an initial payment of just $1000.
Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.
Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.
Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.
Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.
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