The tax lawyer Leonardo Palacios said that, when the contribution was established via pension law, a harmonization mechanism with the other existing employer charges, such as Social Security and National Funds, was not created, which generates duplicity of payments
Leonardo Palacios, a tax lawyer and university professor, indicated that the Law on the Protection of Social Security Pensions, published in May 2024, does not guarantee that the collected reaches a real social security fund and, on the contrary, is generating sanctions and excessive loads for small and medium enterprises, even those who do not have active employees.
Palacios explained that, when the contribution was established, a harmonization mechanism with the other existing employer loads, such as Social Security and national funds, which generates duplicity of payments, was not created.
To this is added that the law does not specify if the contribution must be calculated on the normal or integral salary, which has derived in amounts “quite high and ambiguous” for entrepreneurs.
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He explained that the contribution applies to commercial companies, both formal and irregular, that they have continuous activity, generate income and operate in the country, but denounced that even small taxpayers have been sanctioned, despite not having payroll personnel.
As an alternative, Palacios proposed to reduce evasion, expand the imposition base under rationality parameters defined by the law – and not discretionally by the Tax Administration – and ensure that collection comes from a true economic expansion, instead of sanctions.
He also insisted that Venezuela needs to build a true social security regime, with an agency that manages the proceeds, accounts and guarantees concrete benefits for workers.
*Journalism in Venezuela is exercised in a hostile environment for the press with dozens of legal instruments arranged for the punishment of the word, especially the laws “against hatred”, “against fascism” and “against blockade.” This content was written taking into consideration the threats and limits that, consequently, have been imposed on the dissemination of information from within the country.
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