Venezuela — ISLR, IVSS, FAOV, IVA, Impuesto Sobre la Renta 2026
💰 ISLR - Impuesto Sobre la Renta (Empleados)
Venezuelan employment income tax with 6 progressive brackets (6%-34%). Calculated on annual net income in Unidades Tributarias (UT). Social security contributions (IVSS 4% + FAOV 1%) deducted before calculation. Note: Due to hyperinflation, thresholds are frequently adjusted by SENIAT.
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📌 ISLR 2026:
6 progressive brackets: 6% / 9% / 12% / 16% / 20% / 34%. Based on UT (Unidad Tributaria), adjusted periodically by SENIAT due to hyperinflation. Basic exemption varies with filing status. IVSS (4%) and FAOV (1%) contributions are deductible. Additional deductions: spouse, children, mortgage interest, medical expenses, charitable donations. Non-residents: flat 34% on Venezuelan-source income. Hyperinflation note: Venezuela has experienced extreme hyperinflation since 2016. The bolívar has been redenominated multiple times (Bs.S → Bs.D → Bs.). Actual tax thresholds change frequently — consult SENIAT for current UT values. Mandatory profit sharing: 15% of pre-tax profits distributed to employees (1-5 months bonus).
📊 Venezuela Tax Rates Overview 2026
Tax Type
Rate
Details
ISLR (Lowest)
6%
Lowest bracket
ISLR (Mid-low)
9%
Lower-middle
ISLR (Middle)
12%
Middle
ISLR (Mid-high)
16%
Upper-middle
ISLR (High)
20%
High income
ISLR (Top)
34%
Top rate
IVSS Employee
4%
Social security
IVSS Employer
9-11%
By risk level
FAOV Employee
1%
Housing fund
FAOV Employer
2%
Housing fund
Paro Forzoso Emp.
2%
Unemployment insurance
IVA (Standard)
16%
Most goods & services
IVA (Reduced)
8%
Basic goods
ISLR Corporativo
34%
General rate
ISLR Bancos/Seguros
40%
Financial sector
Impuesto al Patrimonio
0.25%
Wealth tax (special taxpayers)
Impuesto Municipal
1-7%
Municipal business tax
📌 Hyperinflation Context:
Venezuela has experienced one of the worst hyperinflation episodes in history. The bolívar has been redenominated multiple times: Bs.F → Bs.S (2018, ÷100,000) → Bs.D (2018, ÷1,000) → Bs. (2021, ÷1,000,000). The economy is heavily dollarized — many transactions occur in USD despite the bolívar being the official currency. Tax thresholds in UT are adjusted frequently by SENIAT. Minimum wage and Cestaticket are adjusted periodically. Most salary calculations in practice reference USD equivalents.
📌 Seguridad Social 2026:Employee (~5.5%): IVSS pension/health 4% + FAOV housing 1% + Paro Forzoso unemployment 0.5%. Employer (~13-15%): IVSS 9-11% (by risk) + FAOV 2% + Paro Forzoso 2% + INCEL 0.5% (if applicable). Cestaticket Socialista: Mandatory monthly food bonus paid via electronic card. Value set by government, separate from base salary. Often significantly higher than minimum wage. Prestaciones Sociales: Guaranteed severance — 30 days salary/year of service (minimum), plus 2 additional days per year beyond the first. Plus retroactive benefit (30 days last salary). Utilidades (Profit Sharing): Mandatory 15% of pre-tax profits distributed to employees, capped at 120 days salary. Vacaciones: 15 working days + 1 extra day per year of service (up to 15 additional days). Bono de vacaciones: 15 days salary bonus.
🧾 IVA Calculator (Impuesto al Valor Agregado)
Venezuelan VAT has 3 rates. Standard: 16%. Reduced: 8%. Zero: 0% (exports, basic food). Plus potential "impuesto al gran consumo" on luxury items.
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📌 IVA 2026:16%: Most goods & services, electronics, clothing, restaurants, alcohol. 8% (Reduced): Basic goods, some food items, pharmaceuticals, school supplies. 0% (Exempt): Exports, basic unprocessed food (arepa flour, corn, rice, beans, milk), medical services, education, books/newspapers. IGTF (Impuesto a las Grandes Transacciones Financieras): Tax on large financial transactions, foreign currency payments, and payments outside the banking system. Rate: 2-3% on foreign currency operations. Filing: Monthly declaration via SENIAT portal. Credit mechanism: IVA paid on purchases offsets IVA collected on sales.
🏢 ISLR Corporativo (Corporate Income Tax)
Corporate income tax: 34% (general). Insurance/banks/financial: 40%. Plus mandatory profit sharing 15% and dividend withholding.
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🏠 Impuesto al Patrimonio + Municipal
Wealth tax: 0.25% on net assets (special taxpayers only). Municipal tax: 1-7% on gross revenue. Plus IGTF on financial transactions.
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📌 Corporate & Other Tax Notes:ISLR Corporativo (34%/40%): General rate 34%. Insurance, reinsurance, banks, financial institutions: 40%. Profit Sharing (15%): Mandatory — companies must distribute at least 15% of pre-tax profits to employees. Each employee receives 1-5 months salary depending on company profitability. Capped at 120 days salary per employee. Impuesto al Patrimonio: 0.25% annual tax on net assets of "special taxpayers" (Grandes Contribuyentes). Applies to total net worth including real estate, vehicles, financial assets, inventory. Impuesto Municipal: Varies by municipality. Bogotá-like tax on gross revenue (not profit!). Rate 1-7% depending on industry. IGTF: 2-3% on foreign currency transactions and payments outside banking system. Designed to encourage use of bolívar and formal banking.