Tax insight

Venezuelan tax changes aim to reactivate oil investments

Insight
5 minute read
February 11, 2026

What happened?

A reform of the Venezuelan Master Hydrocarbons Law was published in Extraordinary Official Gazette No. 6,978 on January 29, 2026 (the Reform). The Reform was approved by the Venezuelan National Assembly, and signed into law by Interim President Delcy Rodríguez, thereby adopting changes to the regulatory and operational framework for the hydrocarbons sector, along with selected tax changes.

As interest increases, investors are revisiting Venezuela’s legal and tax framework to better understand the applicable tax burden, compliance obligations, cash repatriation considerations, and structuring alternatives.

Why is it relevant?

Venezuela historically has applied a complex, multi-layered tax system, characterized by high statutory rates, industry-specific regimes, and extensive production- and price-based levies. The cumulative effect of income tax, royalties, windfall taxes, and indirect taxes could materially affect project economics and cash flows in the oil sector. The Reform is expected to affect how investments are structured and operated, as well as project economics.

Actions to consider

Multinational groups considering investments or transactions involving Venezuela should reevaluate their potential structures and assumptions in light of the revised tax framework. Companies should continue to monitor legislative and regulatory developments, as business associations pursue additional tax changes. Given the potential impact of tax costs, tax functions should seek early alignment with C-suite stakeholders to support informed investment decisions.