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Venezuela - Papua New Guinea — Orbitax Withholding Tax Rates

Capital Gains

  • Best Rates5%
  • Domestic Rates 5%
  • Treaty Rates-
  • EU Rates-

Domestic

Capital gains from the sale of stock in Venezuelan corporations are subject to withholding at the rate of:

  • 5% if the recipient is a non-resident legal entity;
  • 34% if the recipient is a non-resident individual; and
  • 1% (as final payment) if the stock corresponds to an entity listed on the Venezuelan stock exchange and the transfer takes place through the stock exchange.

Dividend

  • Best Rates34%
  • Domestic Rates 34%
  • Treaty Rates-
  • EU Rates-

Domestic

Dividends distributed by Venezuelan companies are taxable to the extent the dividend consists of previously untaxed corporate profits (excess of book over taxable profits). Therefore, tax is withheld on the taxable portion of dividends at the rate of 34% on the gross amount thereof. The withholding tax rate is 50% for dividends paid by companies engaged in upstream oil activities and 40% for dividends paid by banks, financial institutions, and insurance and reinsurance companies. The dividend withholding tax is a final tax in full satisfaction of the recipient’s Venezuelan tax liability.

Interest

  • Best Rates32.3%
  • Domestic Rates 32.3%
  • Treaty Rates-
  • EU Rates-

Domestic

Non-resident lenders are subject to withholding tax on 95% of the gross amount of interest and financial charges paid by a Venezuelan debtor pursuant to foreign debt agreements. Tax is withheld at a reduced rate of 4.95% if the recipient of the interest is a Qualified Foreign Financial (as so designated by the country of residence). Otherwise, tax is withheld on interest payments at progressive rates of up to 32.3% or up to 34%, depending on the specific features of the loan and the type of recipient, unless otherwise reduced under a tax treaty.

Royalty - Copyright

  • Best Rates30.6%
  • Domestic Rates 30.6%
  • Treaty Rates-
  • EU Rates-

Domestic

Payments qualifying as royalties under the restrictive definitions established in the Venezuelan domestic law are subject to withholding tax on 90% of the gross amount. Therefore, tax is withheld on royalties and similar payments at an effective rate of 30.60% (top marginal rate of 34% on a presumed notional net income of 90%).

Royalty - Patent

  • Best Rates30.6%
  • Domestic Rates 30.6%
  • Treaty Rates-
  • EU Rates-

Domestic

Payments qualifying as royalties under the restrictive definitions established in the Venezuelan domestic law are subject to withholding tax on 90% of the gross amount. Therefore, tax is withheld on royalties and similar payments at an effective rate of 30.60% (top marginal rate of 34% on a presumed notional net income of 90%).

Royalty - Trademark

  • Best Rates30.6%
  • Domestic Rates 30.6%
  • Treaty Rates-
  • EU Rates-

Domestic

Payments qualifying as royalties under the restrictive definitions established in the Venezuelan domestic law are subject to withholding tax on 90% of the gross amount. Therefore, tax is withheld on royalties and similar payments at an effective rate of 30.60% (top marginal rate of 34% on a presumed notional net income of 90%).

Sales

  • Best Rates0%
  • Domestic Rates 0%
  • Treaty Rates-
  • EU Rates-

Service - Management

  • Best Rates10.2%
  • Domestic Rates 10.2%
  • Treaty Rates-
  • EU Rates-

Domestic

Payments qualifying as managerial assistance under the restrictive definitions established in the Venezuelan domestic law are subject to withholding tax on 30% of the gross amount. The withholding tax applies on 50% of the gross amount for payments qualifying as technology services. Therefore, tax is withheld at rates of up to 10.2% on managerial assistance payments (top marginal rate of 34% of a presumed or notional net income of 30%) and at the rate of 17% on technology services (34% on a presumed net notional income of 50%).

Service - Technical

  • Best Rates10.2%
  • Domestic Rates 10.2%
  • Treaty Rates-
  • EU Rates-

Domestic

Payments qualifying as technical assistance under the restrictive definitions established in the Venezuelan domestic law are subject to withholding tax on 30% of the gross amount. The withholding tax applies on 50% of the gross amount for payments qualifying as technology services. Therefore, tax is withheld at rates of up to 10.2% on technical assistance payments (top marginal rate of 34% of a presumed or notional net income of 30%) and at the rate of 17% on technology services (34% on a presumed net notional income of 50%).