Venezuela Income Tax

Venezuela Income Tax (ISLR) — Individual Skill v0.1

Verified rates & thresholds (accountant-authored, no independent check recorded)

No independent accountant check is recorded for this version. Items flagged for further clarification are tracked separately and excluded here.

venezuela-income-tax

• Valor de la Unidad Tributaria (UT) — vigente — VES 43.00 por UT (SNAT/2025/000048, Gaceta Oficial 2 June 2025)
• Valor de la Unidad Tributaria (UT) — anterior — VES 9.00 por UT (SNAT (providencia anterior))
• Incremento del valor de la UT (VES 9.00 → VES 43.00) — ~377.8% (SNAT/2025/000048)
• Tasa marginal máxima — residentes (Tarifa Nº 1) — 34% (LISLR Tarifa Nº 1)
• Tasa fija para no residentes sobre rentas de fuente venezolana — 34% (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 1: 0–1,000 UT — alícuota — 6% (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 1: 0–1,000 UT — sustraendo — 0 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 1: 0–1,000 UT — impuesto acumulado al tope del tramo — 60 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 2: 1,000–1,500 UT — tasa — 9% (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 2: 1,000–1,500 UT — sustraendo — 30 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 2: 1,000–1,500 UT — impuesto acumulado al tope del tramo — 105 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 3: 1,500–2,000 UT — tasa — 12% (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 3: 1,500–2,000 UT — sustraendo — 75 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 3: 1,500–2,000 UT — impuesto acumulado al tope del tramo — 165 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 4: 2,000–2,500 UT — tasa — 16% (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Tramo 4: 2,000–2,500 UT — sustraendo — 155 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 4: 2,000–2,500 UT — impuesto acumulado al tope de la banda — 245 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 5: 2,500–3,000 UT — tasa — 20% (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 5: 2,500–3,000 UT — sustraendo — 255 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 5: 2,500–3,000 UT — impuesto acumulado al tope de la banda — 345 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 6: 3,000–4,000 UT — tasa — 24% (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 6: 3,000–4,000 UT — sustraendo — 375 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 6: 3,000–4,000 UT — impuesto acumulado al tope de la banda — 585 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 7: 4,000–6,000 UT — tasa — 29% (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tarifa Nº 1 — Banda 7: 4,000–6,000 UT — sustraendo — 575 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Tarifa Nº 1 — Banda 7: 4,000–6,000 UT — impuesto acumulado al tope de la banda — 1,165 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Tarifa Nº 1 — Banda 8: Más de 6,000 UT — tasa — 34% (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Tarifa Nº 1 — Banda 8: Más de 6,000 UT — sustraendo — 875 UT (LISLR Tarifa Nº 1; PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Fórmula del impuesto — Tarifa Nº 1 — Impuesto (UT) = (tasa × renta gravable en UT) − sustraendo (LISLR Tarifa Nº 1)
• No residente — sueldos/servicios en Venezuela — tasa fija — 34% del ingreso bruto (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• No residente — actividades profesionales no empresariales — tasa legal — 34% sobre el 90% del ingreso bruto (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• No residente — actividades profesionales no empresariales — tasa efectiva — ~30.6% del ingreso bruto (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Desgravamen único — 774 UT/año (LISLR; PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Desgravamen único — equivalente en VES a la UT 2025 — VES 33,282.00 (SNAT/2025/000048)
• Desgravamen detallado — intereses hipotecarios sobre vivienda principal — límite anual — 1,000 UT/año (LISLR; PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Desgravamen detallado — límite de intereses hipotecarios — equivalente en VES a la UT 2025 — VES 43,000.00 (SNAT/2025/000048)
• Desgravamen detallado — alquiler de vivienda principal/permanente — límite anual — 800 UT/año (LISLR; PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Desgravamen detallado — límite de alquiler — equivalente en VES a la UT 2025 — VES 34,400.00 (SNAT/2025/000048)
• Desgravamen detallado — educación (contribuyente e hijos menores de 26 años) — límite anual — Sin límite establecido (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Arrastre de pérdidas — período máximo — 3 años (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Arrastre de pérdidas — límite anual de compensación como % de la renta gravable del año en curso — 25% (PwC Worldwide Tax Summaries, revisado 12 Jan 2026)
• Crédito personal del contribuyente — 10 UT (LISLR; PwC Worldwide Tax Summaries, revisado 12 Jan 2026)
• Crédito personal del cónyuge — 10 UT (LISLR; PwC Worldwide Tax Summaries, revisado 12 Jan 2026)
• Crédito por carga familiar (menor de edad; incapacitado; o estudiante menor de 25 años) — 10 UT por cada uno (LISLR; PwC Worldwide Tax Summaries, revisado 12 Jan 2026)
• Valor de cada crédito de 10 UT en VES a la tasa de UT 2025 — VES 430.00 (SNAT/2025/000048)
• Fecha límite de la declaración definitiva de rentas — 31 de marzo del año siguiente — SIN prórroga (LISLR; PwC Worldwide Tax Summaries, revisado 12 Jan 2026)
• Umbral de la declaración estimada — ingresos del año anterior provenientes de actividad comercial/profesional/arrendamiento — 1,500 UT (LISLR; PwC Worldwide Tax Summaries, revisado 12 Jan 2026)
• Umbral de la declaración estimada — equivalente en VES a la UT 2025 — VES 64,500.00 (SNAT/2025/000048)
• Opciones de pago del anticipo de impuesto — Pago único o 6 cuotas iguales; anticipos quincenales para contribuyentes especiales no asalariados (PwC Worldwide Tax Summaries, revisado 12 Jan 2026)
• Retención del ISLR sobre servicios profesionales/técnicos prestados por residentes (Decreto 1.808) — [BRECHA DE INVESTIGACIÓN] — ~10% en la fuente (Decreto 1.808 / SENIAT [RESEARCH GAP — secondary source only])
• IVA (VAT) standard rate — 16% (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• IVSS (Social Security) — employee contribution rate — 4% (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• IVSS (Social Security) — employer contribution rate (by risk class) — 9% / 10% / 11% (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• IVSS — base de cotización — Salario normal/regular (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• IVSS — tope de cotización — Hasta 5 salarios mínimos (urbanos) (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Desempleo (Régimen Prestacional de Empleo) — tasa de contribución del empleado — 0.5% (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Desempleo (Régimen Prestacional de Empleo) — tasa de contribución patronal — 2% (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Desempleo — tope de cotización — Hasta 10 salarios mínimos (urbanos) (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• FAOV (Housing / Ley de Vivienda y Hábitat) — employee contribution rate — 1% (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• FAOV (Housing) — employer contribution rate — 2% (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• FAOV — base de cotización — Salario mensual total (integral) (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• FAOV — tope de cotización — Maximo 10 salarios minimos (El artículo 172 de la Ley de Régimen Prestacional de Vivienda y Hábitat,)
• INCES (Worker training) — employee contribution rate — 0.5% (from year-end utilidades) (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• INCES — employer contribution rate — 2% of total wages (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Base de la contribución del empleado al INCES — Utilidades anuales — NO el salario mensual; sin tope (PwC)
• LOPCYMAT (Workplace risk) — employer contribution rate — 0.75% – 10% (risk-dependent) (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)
• Tasa parafiscal total a cargo del empleado (aportes del trabajador al IVSS + desempleo + FAOV + INCES sobre el salario normal) — 6.0% (PwC Worldwide Tax Summaries, revisado el 12 Jan 2026)
• Salario mínimo legal (congelado) — VES 130/mes (Decreto 4.653, vigente desde el 15 March 2022)
• Ingreso mínimo integral indexado (piso de ingresos no salariales en bonos) — ~USD 160/mes (Anuncio del Ejecutivo del 30 April 2025)
• Mecanismo de sanciones del COT — base de cálculo de multas pecuniarias — Múltiplos del tipo de cambio oficial de la moneda de mayor valor publicado por el BCV (efectivamente USD) a la fecha de pago (COT Art. 91, reforma 2020)
• Presentación tardía de una declaración / declaración de retenciones — orden de magnitud — ~100–150× la tasa de la moneda de mayor valor (declaraciones de retenciones citadas en 150×) (Tabla del COT de Grant Thornton; jurisprudencia del TSJ [RESEARCH GAP — full table])
• Omisión de presentación de declaraciones (deber formal, COT Art. 103/155) — orden de magnitud — 150–300× la tasa de la moneda de mayor valor (COT Art. 103/155; decisiones del TSJ [RESEARCH GAP — full table])
• Tasa de interés por pago tardío — Tasa activa de mercado × 1.2 (COT)

Critical Structural Warning — Read First

Venezuela is a hyperinflationary economy with a dual-track measurement system. Three caveats govern everything below:

1. ISLR brackets, deductions and credits are denominated in Tax Units (Unidad Tributaria / UT), not in bolívares directly. You must convert UT → VES using the current UT value before quoting any bolívar figure. (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026.)
2. Penalties are NO LONGER in UT. Since the 2020 reform of the Código Orgánico Tributario (COT Art. 91), pecuniary fines stated as a multiple are calculated using the official exchange rate of the highest-value currency published by the BCV (effectively the USD rate) on the date of payment. (COT Art. 91, 2020 reform.)
3. The legal minimum wage (Bs. 130/month, frozen since 15 March 2022, Decreto 4.653) is economically negligible (~USD 0.50/month by Dec 2025). The real income floor is delivered via non-salary "bonos" (the "ingreso mínimo integral indexado" of ~USD 160/month, announced 30 April 2025). Do NOT treat the legal minimum wage as the economic minimum, and note that bonos are excluded from the salary base for social security and largely from the ISLR salary base. (Decreto 4.653; executive announcement 30 April 2025.)

Section 1 — Quick Reference

Quick Reference

Field	Value
Country	Venezuela (Bolivarian Republic of Venezuela)
Tax	ISLR — Impuesto Sobre la Renta (personal income tax)
Currency	Bolívar (VES / Bs.) — brackets denominated in Tax Units (UT)
Tax year	Calendar year (1 January – 31 December) for wage earners; business-engaged individuals may elect an alternative 12-month period (PwC, reviewed 12 Jan 2026)
Primary legislation	Ley de Impuesto Sobre la Renta (LISLR)
Supporting legislation	Código Orgánico Tributario (COT); Decreto 1.808 (ISLR withholdings); SNAT/2025/000048 (UT value)
Tax authority	SENIAT — Servicio Nacional Integrado de Administración Aduanera y Tributaria
Social security authority	IVSS — Instituto Venezolano de los Seguros Sociales (plus parafiscal regimes)
Tax ID	RIF — Registro Único de Información Fiscal (issued by SENIAT, no fee)
Filing deadline	31 March of the following year — NO extensions (PwC, reviewed 12 Jan 2026)
Tax Unit (UT) value	VES 43.00 per UT (SNAT/2025/000048, Official Gazette 2 June 2025)
Top marginal rate (residents)	34% (Tarifa Nº 1, LISLR)
Non-resident flat rate	34% on Venezuelan-source income (PwC, reviewed 12 Jan 2026)
Validated by	No independent accountant check is recorded for this version.
Validation date	No independent accountant check is recorded for this version.
Skill version	0.1

Tax Unit (UT) — the master variable

Tax Unit (UT) — the master variable

Field	Value	Source
Current UT value	VES 43.00	SNAT/2025/000048, Official Gazette 2 June 2025, effective same date
Previous UT value	VES 9.00	SNAT (prior ruling)
Increase	~377.8%	Derived from VES 9.00 → VES 43.00

• UT setting mechanism and conversion — The UT is set by SENIAT administrative ruling on no fixed schedule. ISLR brackets, deductions, credits and filing thresholds are all expressed in UT. Convert UT → VES at VES 43.00/UT for the 2025 reporting cycle.

Resident Graduated Rate Schedule (Tarifa Nº 1)

Resident Graduated Rate Schedule (Tarifa Nº 1) (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026 (LISLR Tarifa Nº 1))

Taxable income (UT)	Rate	Sustraendo (UT)	Cumulative tax at top of band (UT)
0 – 1,000	6%	0	60
1,000 – 1,500	9%	30	105
1,500 – 2,000	12%	75	165
2,000 – 2,500	16%	155	245
2,500 – 3,000	20%	255	345
3,000 – 4,000	24%	375	585
4,000 – 6,000	29%	575	1,165
Over 6,000	34%	875	—

• Tax formula and continuity note — Tax = (rate × taxable income in UT) − sustraendo, then × UT value for the VES figure. The sustraendos make the schedule continuous (each band's cumulative tax at its ceiling equals the next band's value at the same point — verified). (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026 (LISLR Tarifa Nº 1))

Non-Resident Rates (flat, withheld at source)

Non-Resident Rates (flat, withheld at source) (PwC, reviewed 12 Jan 2026)

Income type	Rate	Effective rate	Source
Salary / services performed in Venezuela	34% flat	34% of gross	PwC, reviewed 12 Jan 2026
Professional non-business activities	34% on 90% of gross	~30.6% of gross	PwC, reviewed 12 Jan 2026

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown residency status	STOP — do not apply a rate basis without residency (worldwide vs Venezuelan-source)
Unknown deduction method	Standard deduction (desgravamen único 774 UT) — blocks itemized
Unknown whether income is salary or non-salary bono	Treat as bono (excluded from salary base) only if explicitly confirmed; otherwise treat as salary
Unknown UT value for a prior year	STOP — confirm the UT ruling in force for that tax year
Unknown business-use %	0% deduction
Unknown expense category	Not deductible
Unknown taxpayer marital/dependant status	Apply taxpayer credit (10 UT) only; do not assume spouse/dependant credits
Unknown VES amount where only UT is given	Convert at VES 43.00/UT (2025) and flag the UT value used

Section 2 — Required Inputs and Refusal Catalogue

Required Inputs

• Minimum viable / Recommended / Ideal inputs and refusal — Minimum viable — bank statement(s) for the full tax year (PDF, CSV, or pasted text), confirmation of residency status (resident worldwide / non-resident Venezuelan-source), and the RIF status of the individual. Recommended — invoices issued and received, ISLR withholding certificates (comprobantes de retención), prior-year declaración definitiva de rentas, confirmation of marital/dependant status for credits, and the UT value in force for the year. Ideal — complete income and expenditure record, documentation for any itemized desgravámenes (education, insurance, medical, mortgage interest, rent), social-security/parafiscal payment records, and any estimated-return (declaración estimada) filings. Refusal if minimum is missing — SOFT WARN. No bank statement at all = hard stop. Bank statement without supporting documents = proceed with reviewer warning: "This ISLR computation was produced from bank statement alone. The reviewer must verify residency basis, that any itemized desgravámenes are documented and paid to Venezuelan entities where required, and that bonos vs salary classification is correct."

Refusal Catalogue

• R-VE-1 — Residency unknown — Residency determines whether worldwide or only Venezuelan-source income is taxed. This skill cannot compute ISLR without it. Please confirm resident vs non-resident status before proceeding.
• R-VE-2 — Companies / partnerships / group structures — This skill covers individuals (including self-employed professionals and contractors) only. Companies and other entities follow corporate ISLR rules. Escalate to a Venezuelan licensed tax professional.
• R-VE-3 — Prior-year or future-year UT value not confirmed — ISLR brackets are denominated in Tax Units. Without the UT value in force for the relevant tax year, no bolívar figure can be produced. Confirm the SENIAT UT ruling for that year before proceeding.
• R-VE-4 — Penalties / SENIAT enforcement — COT penalties are calculated in multiples of the BCV highest-value-currency exchange rate at the date of payment and can be severe (150–300×). Do not advise on penalty exposure. Escalate to a Venezuelan licensed tax professional immediately.
• R-VE-5 — Hyperinflation / inflationary-adjustment accounting — Inflationary adjustment (ajuste por inflación) and multi-currency measurement issues require specialised analysis. Out of scope for individual salary/professional ISLR. Escalate.
• R-VE-6 — VAT (IVA) return requested — This skill covers ISLR (income tax) only. Venezuelan IVA is a separate 16% regime; use a dedicated VAT skill or escalate.

Section 3 — Transaction Pattern Library

This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. Do not second-guess. If none match, fall through to Tier 1 rules in Section 5. Match by case-insensitive substring on the counterparty name or description as it appears in the statement. If multiple patterns match, use the most specific.

Note: Venezuelan bank statements are typically in bolívares (VES / Bs.); some accounts and payments operate in USD. Always record the currency and convert USD lines to VES at the applicable BCV rate before aggregating.

3.1 Income Patterns (Credits / Abonos)

3.1 Income Patterns (Credits / Abonos)

Pattern	ISLR Line	Treatment	Notes
Client name + TRANSFERENCIA, ABONO, PAGO RECIBIDO, DEPÓSITO	Gross income (ingreso bruto)	Business/professional income	If IVA charged, extract net of 16% IVA
HONORARIOS, HONORARIOS PROFESIONALES, SERVICIOS	Gross income	Professional fees	Typical self-employed income
FACTURA, COBRO FACTURA	Gross income	Business income	Match to issued invoice
STRIPE, PAYPAL, WISE, BINANCE PAYOUT	Gross income	Platform/remittance payout	Verify USD vs VES; convert at BCV rate
SALARIO, NÓMINA, SUELDO, [employer name]	Salary income	Employment income	Resident salary base; subject to withholding
CESTATICKET, BONO, BONO CONTRA LA GUERRA ECONÓMICA	Review — likely EXCLUDE from salary base	Non-salary bono	Excluded from SS base and largely from ISLR salary base — flag for reviewer
ALQUILER, CANON DE ARRENDAMIENTO (received)	Other income	Rental income	Subject to estimated-return threshold test
INTERESES, RENDIMIENTOS (received)	Other income	Investment income	Investment income
DIVIDENDOS	Other income	Investment income	Dividend income
DEVOLUCIÓN ISLR, REINTEGRO SENIAT	EXCLUDE	Not income	Tax refund from prior year

3.2 Expense Patterns (Debits / Cargos) — Self-Employed Business Expenses

Self-employed business expenses are deductible following corporate-tax rules and only against business/professional income, NOT against salary income (PwC, reviewed 12 Jan 2026).

3.2 Expense Patterns (Debits / Cargos) — Self-Employed Business Expenses

Pattern	Category	Treatment	Notes
ALQUILER OFICINA, ARRENDAMIENTO LOCAL	Office rent	Deductible (business)	Dedicated business premises
HONORARIOS CONTADOR, ASESORÍA, AUDITORÍA	Professional fees paid	Deductible (business)
HONORARIOS ABOGADO, LEGAL (business)	Legal fees	Deductible (business)	Must be business-related
PAPELERÍA, MATERIALES DE OFICINA	Office supplies	Deductible (business)
PUBLICIDAD, MARKETING, GOOGLE ADS, META	Advertising	Deductible (business)
COMISIÓN BANCARIA, MANTENIMIENTO CUENTA	Bank charges	Deductible (business)	Business account only
SOFTWARE, SUSCRIPCIÓN, HOSTING, DOMINIO	Software / IT	Deductible (business)	Recurring = expense; capitalise large perpetual items per corporate rules
INTERNET, TELÉFONO (business %)	Telecoms	T2 — business % only	Default 0% if mixed

3.3 Itemized Personal Desgravámenes (only if NOT using the 774 UT standard)

3.3 Itemized Personal Desgravámenes (only if NOT using the 774 UT standard)

Pattern	Category	Treatment	Cap	Source
COLEGIO, UNIVERSIDAD, MATRÍCULA (taxpayer/children <26)	Education	Itemized desgravamen	No stated cap	PwC, reviewed 12 Jan 2026
SEGURO HCM, SEGURO DE VIDA, HOSPITALIZACIÓN	Insurance premiums	Itemized desgravamen	No stated cap; Venezuelan entities	PwC, reviewed 12 Jan 2026
MÉDICO, ODONTÓLOGO, CLÍNICA, HOSPITAL	Medical/dental	Itemized desgravamen	No stated cap; Venezuelan entities	PwC, reviewed 12 Jan 2026
HIPOTECA, INTERESES HIPOTECARIOS (primary home)	Mortgage interest	Itemized desgravamen	1,000 UT/year	PwC, reviewed 12 Jan 2026
ALQUILER VIVIENDA (primary/permanent home)	Rent	Itemized desgravamen	800 UT/year	PwC, reviewed 12 Jan 2026

3.4 Expense Patterns — NOT Deductible

3.4 Expense Patterns — NOT Deductible

Pattern	Category	Treatment	Notes
RESTAURANTE, COMIDA, ENTRETENIMIENTO (personal)	Personal	NOT deductible	Private living costs
MERCADO, SUPERMERCADO, FARMACIA (personal)	Personal	NOT deductible	Private living costs
MULTA, SANCIÓN, INTERESES MORATORIOS	Fines/penalties	NOT deductible	Public policy
PAGO ISLR, IMPUESTO SOBRE LA RENTA	Tax payments	NOT deductible	Income tax cannot reduce income
RETIRO PERSONAL, CONSUMO PROPIO	Drawings	NOT deductible	Not an expense
GASTOS DE EMPLEO (salaried)	Employment expenses	NOT deductible	No employment expenses recognised (PwC, reviewed 12 Jan 2026)

3.5 Exclusions / Tax-Account Movements

3.5 Exclusions / Tax-Account Movements

Pattern	Treatment	Notes
TRANSFERENCIA PROPIA, ENTRE CUENTAS	EXCLUDE	Own-account transfer
PRÉSTAMO, ABONO A PRÉSTAMO, CAPITAL	EXCLUDE	Loan principal movement
RETENCIÓN ISLR, COMPROBANTE DE RETENCIÓN	Credit against liability	Withholding suffered — offsets final tax, not an expense
PAGO IVA, SENIAT IVA	EXCLUDE	VAT liability payment, not an expense
IVSS, SEGURO SOCIAL, FAOV, INCES (employee share)	Parafiscal contribution	Withheld from salary — see Section 5
DECLARACIÓN ESTIMADA, ANTICIPO ISLR	Credit against liability	Estimated-tax advance, not an expense

3.6 Venezuelan Banks — Statement Format Reference

3.6 Venezuelan Banks — Statement Format Reference

Bank	Common patterns	Notes
Banesco	TRANSFERENCIA, PAGO MÓVIL, COMPRA, CARGO	PDF/CSV; description holds counterparty + reference
Banco de Venezuela (BDV)	ABONO, CARGO, PAGO MÓVIL, COMISIÓN	PDF; date format DD/MM/AAAA
Mercantil	TRANSF, DÉBITO, CRÉDITO, COMISIÓN	PDF/CSV
BBVA Provincial	MOVIMIENTO, CARGO, ABONO	PDF
Zelle / USD accounts	RECEIVED, SENT	USD — convert at BCV rate before aggregating

Section 4 — Worked Examples

All examples use UT value = VES 43.00 (SNAT/2025/000048).

Example 1 — Professional fee received (resident self-employed)

Input line: 15/03/2025 ; BANESCO ; ABONO TRANSFERENCIA ; CLIENTE ACME C.A. ; HONORARIOS FACTURA 0012 ; +860.000,00 ; VES

Reasoning: Professional fee for services rendered in Venezuela. If IVA was charged, the gross includes 16% IVA which is a liability to SENIAT, not income. Assuming no IVA charged here (e.g. below threshold / exempt), the full VES 860,000 is gross professional income. Convert to UT for the bracket computation: 860,000 ÷ 43 = 20,000.00 UT.

Classification: Gross income = VES 860,000 (20,000 UT).

Example 2 — Standard deduction and full ISLR computation (resident)

Input: Resident individual, gross income 20,000 UT (VES 860,000), elects the standard deduction (desgravamen único 774 UT), married with two qualifying children.

Reasoning (recomputed end-to-end):

• Gross income: 20,000 UT
• Less desgravamen único: 774 UT
• Taxable income: 20,000 − 774 = 19,226 UT
• Taxable income is in the "Over 6,000" band → rate 34%, sustraendo 875 UT
• Tax = (0.34 × 19,226) − 875 = 6,536.84 − 875 = 5,661.84 UT
• In VES: 5,661.84 × 43 = VES 243,459.12
• Credits (rebajas): taxpayer 10 UT + spouse 10 UT + 2 children × 10 UT = 40 UT = 40 × 43 = VES 1,720
• Tax after credits: 243,459.12 − 1,720 = VES 241,739.12
• Less withholdings suffered during the year: VES 5,300
• Amount due: 241,739.12 − 5,300 = VES 236,439.12

Classification: Tax due = VES 236,439.12. (Matches PwC sample calculation, reviewed 12 Jan 2026.)

Example 3 — Itemized desgravámenes with rent cap

Input: Resident, gross 8,000 UT. Documented rent on primary home VES 50,000/month × 12 = VES 600,000 = 13,953.49 UT. Education VES 86,000 = 2,000 UT. Elects itemized.

Reasoning:

• Rent desgravamen is capped at 800 UT/year (PwC, reviewed 12 Jan 2026). Documented rent of 13,953.49 UT exceeds the cap → allow 800 UT only.
• Education: no stated cap → allow 2,000 UT.
• Total itemized desgravámenes: 800 + 2,000 = 2,800 UT.
• Taxable income: 8,000 − 2,800 = 5,200 UT.
• Band 4,000–6,000 → rate 29%, sustraendo 575 UT.
• Tax = (0.29 × 5,200) − 575 = 1,508 − 575 = 933 UT = 933 × 43 = VES 40,119.00 (before credits).

Classification: Rent capped at 800 UT; taxable 5,200 UT; tax 933 UT (VES 40,119.00) before rebajas.

Example 4 — Non-resident professional fee (flat rate, withheld)

Input line: 10/05/2025 ; MERCANTIL ; PAGO HONORARIOS ; CONSULTOR NO RESIDENTE ; SERVICIOS PROFESIONALES ; +200.000,00 ; VES

Reasoning: Non-resident performing professional non-business activity. Rate is 34% applied to 90% of gross (PwC, reviewed 12 Jan 2026), withheld at source.

• Base: 90% × 200,000 = VES 180,000
• Withholding: 34% × 180,000 = VES 61,200 (effective 30.6% of gross)

Classification: Withholding tax = VES 61,200 (34% on 90% of gross).

Example 5 — Cestaticket / bono received (non-salary)

Input line: 28/04/2025 ; BDV ; ABONO ; CESTATICKET SOCIALISTA ; ABRIL 2025 ; +XXX,XX ; VES

Reasoning: Cestaticket and the "Bono contra la Guerra Económica" are non-salary bonos (ingreso mínimo integral indexado, ~USD 160/month, executive announcement 30 April 2025). They are excluded from the social-security base and largely from the ISLR salary base. Flag for reviewer — do not include in the salary base without confirmation.

Classification: EXCLUDE from salary base (reviewer to confirm). Not severance/aguinaldo/pension base.

Example 6 — ISLR withholding suffered (credit, not expense)

Input line: 30/06/2025 ; BANESCO ; RETENCIÓN ISLR ; CLIENTE BETA C.A. ; COMPROBANTE 2025-44 ; -X.XXX,XX ; VES

Reasoning: ISLR withheld by a client on professional fees is not an expense — it is a prepayment of the individual's final tax. It offsets the final liability (as in Example 2's "withholdings suffered" line). Retain the comprobante de retención.

Classification: Credit against final ISLR liability. NOT a deductible expense.

Section 5 — Tier 1 Rules (When Data Is Clear)

5.1 Residency basis

5.1 Residency basis

Status	Tax base	Source
Resident individual	Worldwide income	PwC, reviewed 12 Jan 2026
Non-resident individual	Venezuelan-source income only	PwC, reviewed 12 Jan 2026
Foreign resident with a fixed base in Venezuela	National- and foreign-source income attributable to that base	PwC, reviewed 12 Jan 2026

5.2 The graduated computation (residents)

• Computation steps — 1. Aggregate worldwide taxable income; convert to UT at the year's UT value (VES 43.00 for 2025). 2. Subtract deductions (standard 774 UT or itemized desgravámenes — not both). 3. Apply the Tarifa Nº 1 band: tax (UT) = (rate × taxable UT) − sustraendo. 4. Convert tax to VES (× 43.00). 5. Subtract personal credits (rebajas) in VES. 6. Subtract ISLR withheld and estimated-tax advances paid. 7. Result = amount due (or refund).

5.3 Deductions — standard vs itemized

• Standard deduction — Standard (desgravamen único): 774 UT/year, no documentation required. Electing it blocks itemized deductions. (PwC, reviewed 12 Jan 2026)
• Itemized desgravámenes — Itemized desgravámenes (Section 3.3): education (taxpayer + children under 26, no age limit for special education); insurance premiums and medical/dental paid to Venezuelan entities; mortgage interest on primary home capped at 1,000 UT/year; rent on primary/permanent home capped at 800 UT/year. (PwC, reviewed 12 Jan 2026)
• Employment expenses and business expenses — Employment expenses: none recognised. Self-employed business expenses follow corporate-tax rules and offset only business income, not salary. (PwC, reviewed 12 Jan 2026)
• Loss carryforward — Up to 3 years; annual offset limited to 25% of current-year taxable income; foreign losses offset only foreign-source income. (PwC, reviewed 12 Jan 2026)

5.4 Personal credits (rebajas) — applied after tax is computed

5.4 Personal credits (rebajas) — applied after tax is computed

Credit	Amount	Source
Taxpayer	10 UT	PwC, reviewed 12 Jan 2026
Spouse	10 UT	PwC, reviewed 12 Jan 2026
Per dependant (minor; incapacitated; or student under 25)	10 UT each	PwC, reviewed 12 Jan 2026

• VES value of each credit — At UT = VES 43.00, each 10 UT credit = VES 430.

5.5 Non-resident flat rates

• Non-resident flat rates — Salary/services performed in Venezuela: 34% flat, withheld at source. Professional non-business activities: 34% on 90% of gross (effective ~30.6%). (PwC, reviewed 12 Jan 2026)

5.6 Filing and administration

5.6 Filing and administration

Item	Detail	Source
Tax year	Calendar year (wage earners); alternative 12-month period for business-engaged individuals	PwC, reviewed 12 Jan 2026
Annual return	Declaración definitiva de rentas	PwC, reviewed 12 Jan 2026
Deadline	31 March of the following year — NO extensions; special calendar for contribuyentes especiales	PwC, reviewed 12 Jan 2026
Spouses	Generally file jointly unless separation criteria met	PwC, reviewed 12 Jan 2026
Estimated-return threshold (non-employees)	Required only if prior-year income from commercial/professional/leasing activity exceeded 1,500 UT	PwC, reviewed 12 Jan 2026
Estimated tax payment	Single payment or 6 equal instalments; bi-weekly advances for non-wage special taxpayers	PwC, reviewed 12 Jan 2026
Tax ID	RIF — issued by SENIAT, no fee, available online; required to invoice/receive payment	PwC corporate "other taxes", reviewed 12 Jan 2026

5.7 Withholding on self-employed / professional income (Decreto 1.808)

5.7 Withholding on self-employed / professional income (Decreto 1.808)

Item	Rate	Source
Professional/technical services (resident)	~10% at source	[RESEARCH GAP — reviewer to confirm] secondary payroll/contractor source; confirm against Decreto 1.808 / SENIAT
Invalid/missing RIF	Increased withholding rate	PwC / Decreto 1.808 (mechanism)
IVA (VAT) on services	16% standard	PwC, reviewed 12 Jan 2026

[RESEARCH GAP — reviewer to confirm] The full itemised Decreto 1.808 ISLR withholding percentage table was not retrieved from a primary source this session. The 10% professional-services figure is from a secondary source and must be confirmed against Decreto 1.808 / SENIAT before relying on it.

5.8 Social security and parafiscal contributions

Source for the whole table: PwC Worldwide Tax Summaries, reviewed 12 Jan 2026.

5.8 Social security and parafiscal contributions (PwC Worldwide Tax Summaries, reviewed 12 Jan 2026)

Regime	Employee	Employer	Base	Cap
Social Security (IVSS / Seguro Social Obligatorio)	4%	9% / 10% / 11% (by risk class)	Normal/regular wages	Up to 5 minimum salaries (urban)
Unemployment (Régimen Prestacional de Empleo)	0.5%	2%	Normal/regular wages	Up to 10 minimum salaries (urban)
Housing (FAOV / Ley de Vivienda y Hábitat)	1%	2%	Total monthly (integral) salary	Máximo 10 salarios mínimos
Worker training (INCES)	0.5% (from year-end utilidades)	2% of total wages	Employee: utilidades; employer: payroll	None
LOPCYMAT (workplace risk)	— (employer only)	0.75% – 10% (risk-dependent)	Total salaries paid	Regulations disputed

• Employee-side total on normal wages — Employee-side total (on normal wages): 4% + 0.5% + 1% + 0.5% = 6.0% (IVSS + unemployment + FAOV + INCES employee shares; note INCES employee share is on utilidades, not normal wages). Verify each base separately before summing — bases differ.

Minimum-salary reference for caps: VES 130/month (since 15 March 2022, Decreto 4.653), still cited by PwC. [RESEARCH GAP — reviewer to confirm] whether caps are administratively indexed to the USD-160 integral income in practice.

5.9 Penalties (COT)

• Mechanism (confirmed) — Pecuniary fines stated as a multiple are calculated using the official exchange rate of the highest-value currency published by the BCV (effectively USD) at the date of payment (COT Art. 91, 2020 reform). Late payment accrues interest at the active market rate × 1.2. (COT Art. 91, 2020 reform)

Penalties (COT) table

Infraction	Order of magnitude	Source
Late filing of a return / withholding declaration	~100–150× the highest-value-currency rate (ISLR withholding declarations cited at 150×)	Grant Thornton COT schedule; TSJ case law
Failure to file declarations (formal duty, COT Art. 103/155)	150–300× the rate	TSJ decisions
Underpayment (material) + interest	Applies in addition	COT

[RESEARCH GAP — reviewer to confirm] The full line-by-line COT penalty table was not extracted from a single primary source this session; mechanism and order of magnitude are confirmed. Parse the Grant Thornton COT PDF in full before quoting exact per-infraction multiples.

Section 6 — Tier 2 Catalogue (Reviewer Judgement Required)

6.1 Bono vs salary classification

• Bono vs salary classification — - Non-salary bonos (Cestaticket, Bono contra la Guerra Económica) are excluded from the SS base, severance, aguinaldos, vacations, pensions and largely from the ISLR salary base. - Flag for reviewer: confirm each credit's legal character before including/excluding from the salary base. - Conservative default: treat ambiguous amounts as salary unless documented as a bono.

6.2 Standard vs itemized deduction election

• Standard vs itemized deduction election — - 774 UT standard requires no documents; itemized may exceed it but needs documentation and (for insurance/medical) payment to Venezuelan entities. - Flag for reviewer: confirm which election minimises tax and that itemized support exists.

6.3 Home/office and mixed-use apportionment

• Home/office and mixed-use apportionment — - Only the business-use portion of telecoms, internet and similar mixed costs is deductible against business income. - Conservative default: 0% until a documented business percentage is provided.

6.4 Currency and BCV conversion

• Currency and BCV conversion — - USD-denominated income/expenses must be converted at the applicable BCV rate; the rate and date drive both the ISLR figure and any penalty exposure. - Flag for reviewer: confirm the conversion rate and date applied to each foreign-currency line.

6.5 Estimated-return obligation

• Estimated-return obligation — - Required only if prior-year commercial/professional/leasing income exceeded 1,500 UT. - Flag for reviewer: confirm prior-year activity income against the 1,500 UT threshold.

6.6 Self-employed expense deductibility (corporate rules)

• Self-employed expense deductibility (corporate rules) — - Business expenses follow corporate-tax rules and offset only business income, not salary. - Flag for reviewer: confirm each expense meets the corporate-deduction test and is matched to business income.

6.7 Loss carryforward limits

• Loss carryforward limits — - 3-year carryforward; annual offset capped at 25% of current-year taxable income; foreign losses offset only foreign income. - Flag for reviewer: confirm prior-year losses and the 25% annual cap.

Section 7 — Excel Working Paper Template

VENEZUELA ISLR — INDIVIDUAL WORKING PAPER
Tax Year: 2025          UT value used: VES 43.00 (SNAT/2025/000048)
Client: ___________________________   RIF: __________________
Residency: Resident (worldwide) / Non-resident (VE-source) / Fixed base
Deduction method: Standard (774 UT) / Itemized

A. GROSS INCOME (convert all to UT)
  A1. Professional / business income (net of 16% IVA)   ______ VES  ______ UT
  A2. Salary income (excl. non-salary bonos)            ______ VES  ______ UT
  A3. Rental income                                     ______ VES  ______ UT
  A4. Investment income (interest, dividends)           ______ VES  ______ UT
  A5. TOTAL GROSS (UT)                                              ______ UT

B. DEDUCTIONS (choose ONE method)
  B1. Standard desgravamen único                                   774 UT
   -- OR itemized --
  B2. Education                                                    ______ UT
  B3. Insurance premiums (VE entities)                             ______ UT
  B4. Medical / dental (VE entities)                                ______ UT
  B5. Mortgage interest (cap 1,000 UT)                             ______ UT
  B6. Rent — primary home (cap 800 UT)                             ______ UT
  B7. TOTAL DEDUCTIONS                                             ______ UT

C. TAXABLE INCOME (A5 - B)                                         ______ UT

D. TAX (Tarifa Nº 1)
  D1. Band rate ____%   Sustraendo ______ UT
  D2. Tax (UT) = (rate x C) - sustraendo                           ______ UT
  D3. Tax (VES) = D2 x 43.00                                       ______ VES

E. CREDITS (rebajas)
  E1. Taxpayer                                                     10 UT
  E2. Spouse                                                       ______ UT
  E3. Dependants ( __ x 10 UT )                                    ______ UT
  E4. TOTAL credits (UT)                            ______ UT  =  ______ VES

F. FINAL
  F1. Tax after credits (D3 - E4 in VES)                           ______ VES
  F2. Less ISLR withheld (comprobantes)                            ______ VES
  F3. Less estimated-tax advances                                  ______ VES
  F4. AMOUNT DUE / (REFUND)                                        ______ VES

REVIEWER FLAGS:
  [ ] Residency basis confirmed?
  [ ] UT value for the year confirmed (VES 43.00 for 2025)?
  [ ] Bonos vs salary classification confirmed?
  [ ] Standard vs itemized election optimal and documented?
  [ ] Itemized caps applied (mortgage 1,000 UT / rent 800 UT)?
  [ ] USD lines converted at correct BCV rate/date?
  [ ] Estimated-return threshold (1,500 UT) tested?
  [ ] Withholding (Decreto 1.808) rate confirmed [RESEARCH GAP]?

Section 8 — Bank Statement Reading Guide

Venezuelan Bank Statement Formats

Venezuelan Bank Statement Formats

Bank	Format	Key fields	Notes
Banesco	PDF, CSV	Fecha, Descripción, Débito, Crédito, Saldo	Most common; description holds counterparty + reference
Banco de Venezuela (BDV)	PDF	Fecha, Concepto, Monto, Saldo	State bank; pago móvil common
Mercantil	PDF, CSV	Fecha valor, Descripción, Débito, Crédito
BBVA Provincial	PDF	Fecha, Movimiento, Monto, Saldo
USD / Zelle accounts	varies	Date, Counterparty, Amount (USD)	Convert at BCV rate before aggregating

Key Venezuelan Banking / Tax Terms

Key Venezuelan Banking / Tax Terms

Term	English	Classification hint
ABONO	Credit / deposit	Potential income
CARGO / DÉBITO	Debit	Expense — check counterparty
TRANSFERENCIA	Transfer	Check direction and whether own-account
PAGO MÓVIL	Mobile payment	Common in VE; income or expense by direction
HONORARIOS	Professional fees	Income (received) or expense (paid)
RETENCIÓN	Withholding	ISLR withheld — credit against liability
COMISIÓN / MANTENIMIENTO	Bank charge	Deductible (business account)
CESTATICKET / BONO	Food ticket / bonus	Non-salary bono — flag for reviewer
SALARIO / NÓMINA / SUELDO	Salary / payroll	Salary income
IVA	VAT	Liability movement — exclude from income
RIF	Tax ID	Registration reference

Section 9 — Onboarding Fallback

If the client provides a bank statement but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3).
2. Mark all Tier 2 items as "PENDING — reviewer must confirm".
3. Apply conservative defaults (Section 1).
4. Generate the working paper (Section 7) with clear flags.
5. Present the following questions to the client:

ONBOARDING QUESTIONS — VENEZUELA ISLR
1. Residency: resident (taxed on worldwide income), non-resident (VE-source only),
   or foreign resident with a fixed base in Venezuela?
2. Do you have an active RIF? (Required to invoice/receive payment.)
3. Deduction method: standard 774 UT, or do you want to itemize?
4. If itemizing: education, insurance, medical, mortgage interest, rent paid?
   (Insurance/medical must be paid to Venezuelan entities.)
5. Marital/dependant status: spouse? how many qualifying dependants?
6. Any non-salary bonos received (Cestaticket, Bono contra la Guerra Económica)?
7. ISLR withheld during the year (do you have comprobantes de retención)?
8. Did prior-year commercial/professional/leasing income exceed 1,500 UT?
   (Determines estimated-return obligation.)
9. Any foreign-currency (USD) income or expenses to convert at the BCV rate?
10. Are you classified by SENIAT as a contribuyente especial (special calendar)?

Section 10 — Reference Material

Key References

Key References

Topic	Reference
Tax Unit (UT) value	SNAT/2025/000048, Official Gazette 2 June 2025 — VES 43.00/UT
Graduated rates (Tarifa Nº 1)	Ley de Impuesto Sobre la Renta (LISLR)
Deductions / desgravámenes	LISLR; PwC Worldwide Tax Summaries (reviewed 12 Jan 2026)
Personal credits (rebajas)	LISLR; PwC (reviewed 12 Jan 2026)
Filing / administration	LISLR; PwC (reviewed 12 Jan 2026) — 31 March deadline, 1,500 UT estimated threshold
ISLR withholdings	Decreto 1.808 — [RESEARCH GAP — reviewer to confirm full table]
Social security / parafiscal	IVSS; FAOV; INCES; LOPCYMAT; PwC (reviewed 12 Jan 2026)
Penalties	Código Orgánico Tributario (COT), Art. 91 (2020 reform); Grant Thornton COT schedule — [RESEARCH GAP — full table]
Minimum wage	Decreto 4.653 (15 March 2022) — VES 130/month
Income floor (bonos)	Executive announcement 30 April 2025 — "ingreso mínimo integral indexado" ~USD 160/month
VAT (IVA)	16% standard (PwC, reviewed 12 Jan 2026)

UT → VES Conversion Reference (2025)

UT → VES Conversion Reference (2025)

UT figure	VES at 43.00/UT
1 UT	VES 43.00
10 UT (one credit)	VES 430.00
774 UT (standard deduction)	VES 33,282.00
800 UT (rent cap)	VES 34,400.00
1,000 UT (mortgage cap)	VES 43,000.00
1,500 UT (estimated threshold)	VES 64,500.00

Test Suite

Test 1 — Standard deduction, top band (PwC sample). Input: Resident, gross 20,000 UT, standard 774 UT, married + 2 children, withholding VES 5,300. Expected: taxable 19,226 UT; tax = (0.34 × 19,226) − 875 = 5,661.84 UT = VES 243,459.12; credits 40 UT = VES 1,720; after credits VES 241,739.12; less VES 5,300 → due VES 236,439.12.

Test 2 — Itemized with rent cap. Input: Resident, gross 8,000 UT, documented rent 13,953.49 UT, education 2,000 UT, itemized. Expected: rent capped at 800 UT; deductions 2,800 UT; taxable 5,200 UT; band 4,000–6,000 (29%, sustraendo 575); tax = (0.29 × 5,200) − 575 = 933 UT = VES 40,119.00 before credits.

Test 3 — Bottom band. Input: Resident, gross 1,500 UT, standard 774 UT. Expected: taxable 726 UT; band 0–1,000 (6%, sustraendo 0); tax = 0.06 × 726 = 43.56 UT = VES 1,873.08 before credits.

Test 4 — Non-resident professional fee. Input: Non-resident professional fee VES 200,000. Expected: base 90% = VES 180,000; tax 34% = VES 61,200 withheld (effective 30.6%).

Test 5 — Non-resident salary. Input: Non-resident, salary for services in Venezuela VES 500,000. Expected: flat 34% = VES 170,000 withheld at source.

Test 6 — Credits at exact band boundary. Input: Resident, taxable income exactly 6,000 UT, taxpayer-only credit. Expected: use 29% band (4,000–6,000): tax = (0.29 × 6,000) − 575 = 1,165 UT; less taxpayer credit 10 UT = 1,155 UT = VES 49,665.00. (Confirms band continuity: the 34% band at 6,000 gives (0.34 × 6,000) − 875 = 1,165 UT — identical.)

Test 7 — Estimated-return threshold. Input: Prior-year professional income 1,490 UT. Expected: below 1,500 UT → no estimated return required.

PROHIBITIONS

• NEVER quote a bolívar figure without stating the UT value used (VES 43.00 for 2025) and its source
• NEVER apply a rate basis without confirming residency (worldwide vs Venezuelan-source)
• NEVER combine the standard desgravamen (774 UT) with itemized deductions — they are mutually exclusive
• NEVER exceed the itemized caps: mortgage interest 1,000 UT, rent 800 UT
• NEVER treat the legal minimum wage (VES 130/month) as the economic income floor
• NEVER include non-salary bonos in the salary base without reviewer confirmation
• NEVER treat ISLR withheld (retención) or estimated-tax advances as deductible expenses — they are credits
• NEVER allow employment expenses as a deduction — none are recognised
• NEVER allow self-employed business expenses against salary income — only against business income
• NEVER express COT penalties in UT — they are multiples of the BCV highest-value-currency rate at the date of payment
• NEVER quote the Decreto 1.808 withholding rate or the full COT penalty table as authoritative — both are flagged [RESEARCH GAP]
• NEVER present tax calculations as definitive — always label as estimated and route to a licensed reviewer

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