Tax information for Venezuela

Venezuelan taxpayers are subject to tax on their worldwide income at progressive income tax rates from 6% to 34%. Thus, income subject to taxation includes all remuneration earned by the Venezuelan taxpayer, locally or abroad.

Tax relief on premiums

There is no tax relief on premium payments. Venezuelan law requires premium payments to be made from resources outside of Venezuela.

Tax on total encashment

The total encashment of the account would be subject to a gain or loss for income tax purposes measured by the difference between the value of the allocated units realised at their bid price and the tax cost basis of the allocated units bought at their offer price.

The Fiscal Transparency Tax (see subtopic below) is creditable against the tax on total encashment.Tax on partial encashment

The partial encashment would be subject to a gain or loss for income tax purposes measured by the difference between the value of the allocated units realised at their bid price and the tax cost basis of the allocated units bought at their offer price.

The Fiscal Transparency Tax is creditable against the tax on partial encashment.

Tax on death

As our account is a redemption contract (no lives assured), this is not applicable.

Tax on maturity

The maturity of the account would be subject to a gain or loss for income tax purposes measured by the difference between the value of the allocated units realised at their bid price and the tax cost basis of the allocated units bought at their offer price.

The Fiscal Transparency Tax is creditable against the tax on total encashment.

Fiscal Transparency Tax

A gain or loss for income tax purposes is measured by the difference between the value of the allocated units realised at their bid price and the tax cost basis of the allocated units bought at their offer price in every fiscal year.

The following information must be submitted to the tax administration office:

Fiscal domicile, final tax return, an informative tax return about investments made or maintained every fiscal year, account statements, deposits, investments, savings, any other supporting documentation, final tax return for each fiscal year.

This information must include deposits and withdrawals in relation to Royal Skandia investments.

Transactions within the account

There is no tax on fund switching.

Wealth tax

Wealth tax does not currently apply in Venezuela.

Pledge of the account

There is no tax on pledge of the account.

Assignment of the account

A gain or loss for income tax purposes is measured by the difference between the assignment price and the tax cost basis of the account (represented by the amount of investments made until the date of assignment) on the assignment of the account.

Payment to Venezuelan resident beneficiaries

Where the owner of the account is an offshore trust and distributions are made to a Venezuelan resident beneficiary, the payments would be subject to income tax.

The account(s) issued by Royal Skandia will be governed by Manx law.

There are no investment guarantees associated with our funds and in particular there is no guarantee of the return of capital. We offer a range of funds with varying risk characteristics.
The value of the account is determined by the value of the units of the funds to which the account is linked. We accept no responsibility for the investment performance of the funds. The value of units of the funds will depend on the performance of the assets of the funds. The value of the units can fall as well as rise. It should be noted that units and bank deposits, could, in exceptional circumstances, become valueless (this could either be temporarily because of suspension, or permanently). In addition, should any assets be denominated in a foreign currency, there will be exchange rate risks.

Depending on the assets of the funds, there may be limits on the liquidity of the assets. In the event that there are problems liquidating any assets of the funds, the company may defer any transactions involving allocation, cancellation or fund switch until such time as we consider appropriate.

By requesting investment into a particular fund or funds the client accepts these investment risks.
It is for you and your client to decide which funds are most appropriate to their needs. We do not give advice.