In Venezuela, the tax on large financial transactions is contemplated in the Decree with Rank, Value and Force of law of the Large Financial Transaction Law ("LFT Law").1 Legal entities and economic entities without legal personality qualified as special taxpayers ("Special Taxpayer") are subject to the payment of the tax, on debits to their accounts in Venezuelan bank or financial institutions or on the settlement of debts made without mediation of Venezuelan banks or financial institutions (offsetting, novation or write-off of debts). Besides, legal entities and economic entities with a legal personality related to a Special Taxpayer, or even if not related to Special Taxpayers, make payments on behalf of them, with or without mediation of banks or financial institutions, are also subject to the payment of tax in the same terms.
The rate of the tax when first introduced on 2015 was of 0.75% on each debit or taxable operation. In August 2018 the rate increased to 1%. Recently Presidential Decree No. 2,1692 increased again the rate to 2%, valid since 19 November 2018.
In the cases of debits made in accounts with banks or other financial institutions, the tax must be declared and paid daily, with the 1% rate until 18 November 2018, and the 2% rate starting on 20 November 2018, and the bank or financial institution withholds the tax. With settlement of debts outside the financial system, the taxpayer must report and pay the tax according to the "Special Taxpayers Calendar for the Value-Added Tax Withholding Payments".3 There is a possibility that the tax caused before 19 November 2018 (during the validity of the 1% rate) must be declared and payed after that date, according to the Calendar. In those cases, the National Integrated Service of Customs and Tax Administration must allow the taxpayer to report and pay the tax applying the 1% rate.