The Venezuelan Official Gazette No. 41,667, published on July 3, included a law introducing an annual net wealth tax on individuals, corporations, and permanent establishments. Because the new law became effective on July 3, it is unclear whether it will begin to apply in tax year 2019 or 2020. Forthcoming regulations expected later this year should clarify this point.
Taxpayers subject to the tax should begin immediately to evaluate its potential impact. Also, nonresidents with assets located in Venezuela, such as shares in Venezuelan companies, should monitor the forthcoming regulations for purposes of complying with new tax liabilities and filing obligations.