|U.S.-Venezuela Economic Agreements|
Avoiding Double Taxation
The Bolivarian Republic of Venezuela has entered into a number of international conventions, treaties and agreements with the purpose of facilitating processes of commercial exchange. Double taxation is one of those. It can be defined as the implementation of a series of technical and legal instruments that are carried out between two or more countries, or within various levels of government. The purpose is to prevent an individual, country or government from paying the same tax twice. The double taxation treaty also aims to prevent international double taxation. It consists of establishing a determined income beforehand only in one of the two contracted states or that both states be taxed, with the tax obligation falling on one of the two, allowing the full tax paid in the other state to be deducted from the tax owed based on internal regulation.
The United States is one of the countries with which Venezuela has entered into this type of agreement to avoid double taxation and to prevent tax evasion in matters of income tax and patrimony. The agreement between the U.S. and Venezuela is detailed in Gazette No. 5.427, published January 5, 2000, and outlines the taxes covered, general definitions and other relevant information.
Information on other conventions and agreements signed with other countries to avoid double taxation is available from the National Integrated Service of Tax and Customs Administration (SENIAT).
Preferential System of Tariffs
The Preferential System of Tariffs, known in English as the Generalized System of Preference (GSP), is a trade program that provides preferential duty-free entry for more than 5,000 imported products originating from almost 140 developing countries. These products enter the U.S. marketplace exempt of customs taxes. The products included in the program are identified in the Harmonized Tariff Schedule of the United States.