VENEZUELA

On July 3, the National Constitutional Assembly (NCA) passed a bill creating a new wealth tax giving the Executive the power to levy between 0.25 to 1.5% of the total declared assets of all legal and natural persons in the country in excess of USD 269 and 747,000 respectively. The law will enter into force after publication in the Official Gazette of Venezuela. 

The bill empowers the Executive to tax large fortunes at a rate ranging from 0.25 to 1.5% of the total of such estates and also applies to natural persons owning an estate of over USD 269,000 and legal persons owning one of over USD 747,000. The calculation refers to all the properties, businesses and investments of these taxpayers. 

The Executive may also modify any subjects and assets exempt from this tax. Initially, housing registered as principal, as well as social security contributions and benefits derived from labor relations, including contributions and returns from savings funds and savings banks, were not to be covered. On the other hand, securities will be covered by this constitutional law.