Government increases value of the tax unit from Bs 0.02 to Bs 0.40

Government increases value of the tax unit from Bs 0.02 to Bs 0.40

The tax unit suffered an increase of 1,900% in more than a year with the adjustment, which according to specialists, is at the discretion of the Executive

An adjustment in the value of the tax unit was published in Official Gazette number 42,359 dated April 20, 2022, going from Bs 0.02 to Bs 0.40; an increase that had not been made since the beginning of April 2021 when it passed -before the most recent reconversion- from Bs 1,500 to 20,000 bolivares.

Although the adjustments are not as representative for the taxpayer structure in Venezuela, they do represent an increase of 1,900% of the tax unit.

According to the text published in the Official Gazette, this Tax Unit may only be used as a “unit of measurement for the determination of National Taxes whose collection and control are the responsibility of the Integrated National Service of Customs and Tax Administration, not being able to be used by other bodies and entities of the public power for the determination of labor benefits or rates and special contributions derived from the services they provide.

OG 42.359 UT 2022 by As it is on Scribd

Financial Law specialist Daniel Betancourt explained via Twitter that since 2014 the obligation to adjust the tax unit according to the inflation registered in the country and the authorization by the National Assembly for it was eliminated, but that the obligation remains in the hands of the President, who can readjust it in a discretionary without taking into account the indicators.

He also warned that for several years this index has been used excessively, since it was applied in areas other than tax, such as labor benefits, court scales, per diem in public administration, among other things.

The portal Banking and Business details that this increase in the tax unit influences the rise of several things. For example, he points out, the Special Taxable Subjects must have recorded income for a minimum of 30,000 tax units in the preceding fiscal year. With the previous value, that income was equivalent to 600 bolívares, and now it rises to 12,000 bolívares, or 2,690 dollars at the official exchange rate.

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