VENEZUELA

The Executive branch has just enacted the law creating a wealth tax, passed by the National Constituent Assembly (ANC) last July 3. The measure, which was published in Official Gazette No. 41.667 on July 11, is already in force and gives the Executive branch the power to levy a tax of between 0.25 to 1.5% of the total declared assets of all legal and natural persons in the country in excess of USD 269,000 and USD 747,000 respectively.

The Executive may also modify any subjects and assets exempt from this tax. Initially, people’s principal dwellings, 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. However, securities are to be covered by this constitutional law.

Similar measures announced in recent weeks include one allowing the Central Bank to intervene freely in the foreign exchange market, another imposing maximum limits on foreign currency purchases and sales, and yet another establishing complementary and alternative credit and debit cards systems, among others.