On July 3, 2019, the ANC published in the Official Gazette No. 41.667, the Constitutional Law creating a Net Equity Tax on High Net Worth Taxpayers (LNETHNT). The most important elements of the Law being:

 

 The tax applies to special individual taxpayers whose net equity is equal to, or greater than, thirty-six million tax units (36,000,000 T.U.), and equal to, or greater than one hundred million tax units (100,000,000 T.U.) in the case of legal entities. The current value of the T.U. is Bs. 50/1 T.U.

 

 The Federal Administration is in charge of controlling, collecting and managing the tax.

 

 The ownership or possession of “net equity”, equal to the legal threshold constitutes a taxable event, in the terms established under the Law.
 Taxpayers who qualify as “special” will be taxed according to the following source criteria:

 

1. Individuals and legal entities that qualify under this law, as well as entities without legal personality resident in the country, will be taxed on the total global net equity, regardless of where the assets representing the net equity are located or where can the underlying rights be exercised. The taxable Net Equity (NE) in these cases is the worldwide one.

 

2. Foreign Individuals and legal entities qualified as subject to this tax, as well as entities without legal personality not resident in the country, will be taxed on the net equity obtained from a Venezuelan source, as well as any underlying rights that can be exercised in the country. For this assumption, the taxed NE will be only that of Venezuelan source.