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Legal Environment / Incentives

Incentives

Legal Environment

  1. General
    • Industries, services and research: 10% reduction over Income Tax (ISLR in Spanish) for new investment.
    • Environment: additional 10% reduction over Income Tax for investments in actives, programs and activities intended to conservation, defense and environment improvement.
    • Tourism: 75% reduction over Income Tax from the amount of new investments intended to infrastructures, any tourism services or training and qualification of workers.
    • Agriculture, livestock and fisheries or fish activities: 80% reduction over Income tax from the total amount of new investments made on the influence area of production unity whose purpose is mutual benefit, either the unity itself or the community in which it is inserted.
    1. Sectoral:
    • Primary Exploitation of agricultural, forestry, livestock, poultry, fisheries, aquaculture and fish activities; previously registered, exemption for payment of Income Tax (ISLR in Spanish), after fulfilling the conditions such as, register, intended the total amount due in direct investments for the respective activity in investigation manner and scientific and technological development, improvement on productivity index or in capital goods.
    • Shipbuilding: it is granted 75% reduction of Income Tax over new investments intended to the acquisition or rental of new ships or accessories. Expansion or improvements in ships or accessories equipment, new technologies in maritime services, among others.
    • Capital Goods, Computing and Telecommunications:  exemption of payment over Added Value Tax (IVA in Spanish), and the applying of 2% aliquot or 0% ad valorem, accordingly to retained imports of movable capital (BK), computing and telecommunication goods (BIT), their parts, pieces and accessories prescribed in the regulation.
    • Housing Construction:  Exemption of Income tax, the enrichment obtained by legal constituted or to be constituted persons, installed or to be installed on national territory. Independent of the activities they are engaged, from activities such as: studies, projects, construction, installation, repairment, recovering, civil Works, among others, running under Decree with Range, Value and Strength of Organic Emergency Law on Ground and Housing and la Gran Misión Vivienda Venezuela (Great Mission Venezuela Housing).
    • Customs:
    • Restitution of Import Duties (draw back).
    • Improvement of active and passive scheme.
    1. Zones with special tax regime
    • Free Zone: Located in Paraguaná, Falcón State and San Francisco Municipality (To the south of Lake Maracaibo), Zulia State.
    • Free Ports: Santa Elena de Uairén (Bolívar State) and Nueva Esparta State.
    • Free Zones: Cultural Free Zone, Scientific and Technological, Mérida State and Free Zone to Promote Touristic Investment of Paraguaná Penninsula, Falcón State.
    • Regions of Integral Development and National Strategic Development Zone:
      • National Strategic Development Zone Orinoco Oil Belt “Hugo Chávez”: Encompasses 6 States (Apure, Guárico, Anzoátegui, Monagas, North of Bolívar and Delta Amacuro) y 26 Municipalities.

    For further information about Free Trade Zones, Free Ports and Free Zones, click here

    • Special Economic Zones:
    • Special Economic Zone Border Ureña-San Antonio: inhabited centers of Ureña and San Antonio del Táchira.
        • Special Economic Zone of Paraguaná: Paraguaná Penninsula of Falcón State.

    For further information about Integral Development and Special Economic Zones, click here