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Income Tax Payment Exemption Applicable To Profits From Agricultural Activities

 

Through Decree No. 3,920, published in the Official Gazette No. 41.678 on July 19, 2019, the Venezuelan Government extended for five years to exempt payment of Income Tax on net profits from primary exploitation of agricultural activities, particularly in the areas of plants, livestock, forestry, fisheries and aquaculture.

 

This exemption had already been granted for the fiscal years 2016, 2017 and 2018, according to Decree No. 2.287 published in the Official Gazette No. 40.873 dated March 28, 2016.

 

To benefit from the exemption contained in the Decree, the taxpayer must allocate to direct investments in research and development, scientific or technological, improvement of productivity indices, or capital goods, one hundred percent (100%) of the amount of the tax that would have been due to pay. These investments must be made in the year following that corresponding to the exempted tax year.

 

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