On 10 August 2023, Venezuela published Decree Nos. 4,838; 4,839; 4,840; and 4,841 in the Official Gazette. The Decrees established four new special economic zones (SEZs) with tax incentives aimed at boosting production, especially for exports. The four new SEZs are established in the following states:
- Federal Dependency Isla La Tortuga;
- Special Military Economic Zone No. 1 of Aragua State;
- Peninsula Paraguaná of Falcón State; and
- La Guaira State.
In Federal Dependency Isla La Tortuga, businesses can enjoy the following incentives:
- Income Tax Refund:
- Up to 100% refund of income tax for the first 20 years;
- 50% refund from year 21 to year 25; and
- No refund after year 25.
- Accelerated Depreciation Benefit: Allows faster write-off of assets, subject to government regulations.
- Customs Duties Reimbursement: Up to 10 years of reimbursement for eligible businesses, reducing import costs.
In the Special Military Economic Zones No. 1 of Aragua State, Peninsula Paraguaná in Falcón State, and La Guaira State, businesses can benefit from the following incentives:
- Income Tax Refund:
- 100% refund for the first 4 years of operations;
- 100% refund during years 5 and 6 if the business exports over 60% of its production; otherwise, a 25% refund; and
- From year 7 onwards, a 75% refund if the business exports over 60% of its production; otherwise, no refund.
- Accelerated Depreciation Benefit: Subject to government regulations, it allows faster depreciation of assets, potentially offering tax advantages.
- Customs Duties Reimbursement: Eligible businesses can receive customs duties reimbursement for up to 10 years, reducing import costs.
