Presidential Decree No. 2,232 ("Decree 2,232) (Official Gazette No. 40,846 of February 11, 2016) established a 0% rate for the tax on large financial transactions ("Financial Tax") on the following operations:
- Debits in single accounts that banking and other financial institutions maintain in the Venezuelan Central Bank, due to the application of measures established by the Issuing Institution, or derived from the execution of operations with the Venezuelan Central Bank;
- Debits that generate the purchase, sale and transfer of the custody of securities issued by decentralized entities of the Republic, as well the payment of the capital or interests therefrom; and,
- Debits generated by the payment of transactions in the execution of the currency exchange control policy.
Although the 0% tax rate is a typical VAT mechanism that allows exporters to recover the input VAT paid upon the purchase or importation of goods and services used in their export activities, for Financial Tax purposes the mechanism turns, in practice, into a tax exoneration.
Decree 2,232 entered into force on February 11, 2016 and the Ministry of the People's Power with competence in Banking and Financial matters is in charge of its execution.