Banking and Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to obligations derived from employment
relationships (59.26% and 47.63% - August 2024) and to transactions with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate - September 2024). (Official Gazette of 09/16/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during July 2024. It was established that the weighted average interest rates for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for July 2024 is of 59.20%, which rate is to be increased 1.2 times for the calculation of late payment interest accrued during said month. (Official Gazette of 09/17/2024. Administrative Ruling SNAT/2024/000090).

Insurance and Reinsurance

The Superintendence of the Insurance Activity (Superintendencia de la Actividad Aseguradora - SUDEASEG) issued the Prudential Rules of the Insurance Activity. (Official Gazette No. 6.835 Extraordinary of 09/03/2024. Administrative Rulings from No. SAA-01-0478-2024 to No. SAA-01-0512-2024 and from No. SAA-01-0516-2024 to No. SAA-01-0537-2024. Entry into force: Upon publication in the Official Gazette). The SUDEASEG, through Administrative Rulings, annulled: (i) the regulation of the group life insurance approved by Ruling No. F55-2-0041 del 01/24/2000, published in
Official Gazette No. 5.441 Extraordinary of 02/21/2000; (ii) the general conditions, particular conditions, riders, request for insurance and loss report of the land transport insurance policy approved by Ruling No. 003947 of 11/25/2009, published in Official Gazette of 12/21/2009; and (iii) the general conditions and particular conditions of the land vehicle hull insurance policy approved by Ruling No. FSAA-9-00094 of 01/12/2017, published in Official Gazette of 04/24/2017. (Official Gazette No. 6.835 Extraordinary of 09/03/2024. Administrative Rulings Nos. SAA-01-0513-2024, SAA-01-0514-2024, and SAA-01/0515/2024. Entry into force: Upon publication in the Official Gazette).

Miscellaneous

The Presidency of the Republic issued the Decree of Removal and Liquidation of the National Center of Foreign Trade (Centro Nacional de Comercio Exterior - CENCOEX). (Official Gazette No. 6.843 Extraordinary of 09/19/2024. Decree No. 5.006. Entry into force: Upon publication in the Official Gazette). A Presidential Decree authorized the creation of a State-owned company under the form of a sociedad anónima, called “Agencia de Promoción de Exportaciones, S.A.”, assigned to the Ministry of the Popular Power for Economy, Finance, and Foreign Trade. The
purpose of said company will be to promote exports and to further positioning of non-oil goods and services for international markets. (Official Gazette No. 6.843 Extraordinary of 09/19/2024. Decree No. 5.007. Entry into force: Upon publication in the Official Gazette). A Presidential Decree established the General Staff of Non-oil Exports, subordinate to the President of the Republic, which will help in the making of strategic decisions in relation to non-oil export matters. (Official Gazette No. 6.843 Extraordinary of 09/19/2024. Decree No. 5.008. Entry into force: Upon publication in the Official Gazette).

Rules for registration of foreign reinsurance companies in Venezuela

The Superintendence of the Insurance Activity (Superintendencia de la Actividad Aseguradora - SUDEASEG) established the guidelines for registration with the registry of foreign reinsurance companies seeking to operate in Venezuela. These rules, published in Official Gazette No. 6.835 Extraordinary of September 3, 2024 and effective as from the same date, describe the necessary steps and documentation required for their compliance. 

From now on, requests for registration with said registry must be made through the SUDEASEG’s online system Sistema Único de Trámites. Exceptions for physical submissions will only be allowed under justified circumstances.

The information that foreign companies must file for the aforesaid registration include:

• Key information, such as their name, corporate domicile, address, contact details, and an authenticated power of attorney for their representative.
• A certificate of the competent authority of the country of their domicile evidencing that the reinsurance company is legally organized in said country  and that it has an authorization issued at least five years before to carry out reinsurance and/or refinancing operations abroad,  indicating the lines of business in which it may operate  and that it has no impediments to payment of reinsurance technical accounts in freely convertible currencies
• Report and financial statements of the last three years, together with audit reports from recognized firms. A minimum equity of USD 10 million is required.
• Documents evidencing that the company is organized and registered in countries, dominions, jurisdictions, territories, or associate, cooperative states in the frame of the global fight against the crimes of risk management of Money Laundering, Terrorism Financing, and Financing of Proliferation of Weapons of Mass Destruction and other unlawful acts, as per the guidelines issued by the Financial Action Task Force (FATF).
• International credit ratings prepared by the providers of credit ratings mentioned in the Rules.

For purposes of the registration with the registry of foreign reinsurance companies, the Lloyd’s of London insurance and reinsurance market will be considered as a single reinsurer. Lloyd’s of London must send SUDEASEG a list of the syndicates that are members of Lloyd’s.

The SUDEASEG will be allowed a period of twenty (20) business days in order to answer the request for registration. The right to correct information or documentation is provided.

The registration must be renewed every three (3) years and the information presented in the request for registration must be updated. Any change in the information provided for registration or renewal must be sent to the SUDEASEG in a period of thirty (30) business days as from the time when such change occurs.

All documents filed in a language other than the Spanish language must be translated by a public interpreter. The powers of attorney and the certifications must have been issued no longer than six (6) months before the date of the request and they must be legalized or apostilled, as appropriate.

Banking & Finance

The Venezuelan Central Bank (VCB) established the interest rates applicable to the obligations derived from employment relationships (59.20% and 47.60% - May and July 2024) and to transactions with credit cards (60.00% annual maximum lending rate and 17.00% annual minimum lending rate - June and August 2024). (Official Gazette of 08/16/2024. Official Notice. Entry into force: Upon publication in the Official Gazette).

Tax

A Presidential Decree exempted the net taxable income of territorial source obtained by Cooperative Associations organized under the Decree with the Force of Special Law of Cooperative Associations from payment of income tax. The benefit of exemption will have a duration of one (1) year as from the date of publication of said Decree in Official Gazette and it may be extended for one (1) year. The exemption will be applied to the fiscal years in progress when the Decree becomes effective. (Official Gazette of 08/12/2024. Decree No. 4.976. Entry into force: Upon publication in the Official Gazette).

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during March, April, May, and June 2024. It was established that the weighted average interest rate for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for March, April, May, and June are: 58.98%, 58.98%, 59.20%, and 59.25% respectively, which rates are to be increased 1.2 times for the calculation of late payment interest accrued during said months (Official Gazette of 08/21/2024. Administrative Rulings Nos. SNAT/2024/000068, SNAT/2021/000076, SNAT/2021/000077, SNAT/2022/000081).

The SENIAT legalized the issue and circulation of liquor warranty seals. (Official Gazette of 08/21/2024. Administrative Ruling No. SNAT/2024/000082. Entry into force: Upon publication in the Official Gazette).

A Presidential Decree extended until 12/31/2024 the effectiveness of Decree No. 4.907, published in Official Gazette No. 6.784 Extraordinary of 12/29/2023 and extended by Decree No. 4.967, published in Official Gazette No. 6.818 Extraordinary of 06/28/2024, which Decree No. 4.907 establishes the exemptions from import duties and value added tax for the importation of goods indicated in Chapter II of said Decree.

Therefore, the exemptions or benefits indicated in Decree No. 4.907 continue to be in effect, in the terms and conditions that said Decree establishes. (Official Gazette of 08/30/2024. Decree No. 4.985. Entry into force. As from 09/01/2024).

Miscellaneous

The Ministries of the Popular Power for Economy, Finance, and Foreign Trade and for Transportation established, through a Joint Resolution, the regulation of the “Exporta Fácil Postal” service, which consists in an exportation service via mail, by means of the operating platform of the Instituto Postal Telegráfico de Venezuela (IPOSTEL) (Postal Telegraph Institute) or another authorized postal operator. The purpose of said Resolution is to establish the procedures for exportation of the products of startup entrepreneurs, micro, small and mediumsized entrepreneurs and artisans of the country, in order to achieve a fast process for the exit of the goods via mail. (Official Gazette of 08/15/2024. Resolution No. 005- 2024 and Resolution No. 034. Entry into force: Upon publication in the Official
Gazette).

A Presidential Decree: 1. Ordered the elimination of the Ministry of the Popular Power for Youth and Sports and created the Ministry of the Popular Power for Youth and the Ministry of the Popular Power for Sports; 2. Ordered the elimination of the Ministry of the Popular Power for Urban Agriculture, the competence of which will be transferred to the Ministry of the Popular Power for Communes and Social Movements, which will now be called Ministry of the Popular Power for Communes, Social Movements, and Urban Agriculture (Official Gazette No. 6.830 Extraordinary of 08/27/2024. Decree No. 4.980. Entry into force: Upon publication in the Official Gazette).

A Presidential Decree assigned the National Institute for Socialist Training and Education (Instituto Nacional de Capacitación y Educación Socialista - INCES) to the Ministry of the Popular Power for the Social Process of Work. (Official Gazette of 08/28/2024. Decree No. 4.983. Entry into force: As from the date of its publication in the Official Gazette).