Recent Venezuelan devaluation could have big DASTM impact

February 2013


The Finance Minister of Venezuela recently announced that, effective February 13, 2013, the Venezuelan bolivar fuerte (VEF) would be devalued by 32%. For financial reporting purposes, the currency devaluation could significantly impact the financial statement of company earnings. For US federal income tax purposes, the impact of the devaluation will depend on both the composition of a company's assets and liabilities with respect to its Venezuelan operations and the structure of the company's Venezuelan operations.

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Doug McHoney
Outbound Co-leader, International Tax Services
Tel: +1 (312) 298 2527

Calum Dewar
International Tax Outbound Services co-leader
Tel: +1 (646) 471 5254