Employer Tax Contributions

Tax Type	Rate	Base
Venezuelan Institute of Social Security (IVSS)	9%-11% (varies by risk)	Employee's salary (up to 5x national minimum wage)
National Housing and Habitat Fund (FAOV)	2%	Employee's total salary
National Institute for Socialist Training and Education (INCES)	2%	Total payroll (for companies with 5+ employees)
Unemployment Insurance (Paro Forzoso)	2%	Employee's salary (up to 10x national minimum wage)

Filing & Compliance

• Social security, housing, and unemployment contributions are typically due within the first few days of the month following the payroll period.
• Income Tax Withholding (ISLR) remittances are generally due monthly, often within the first few days of the following month.
• Employers must provide employees with a certificate of income and withholdings (Certificado de Ingresos y Retenciones) for their annual income tax declaration, typically by March 31st.

In Venezuela, employers deduct taxes and social security contributions from employee salaries, remitting them to the relevant authorities.

Employer Responsibilities

• Tax Withholding and Remittance: Employers withhold income tax, social security contributions, and other applicable taxes from employee salaries. These funds are then remitted to the Venezuelan tax authorities (SENIAT) and social security institutions.
• Social Security Contributions: Employers contribute to social security programs, covering areas such as health, pensions, and unemployment benefits. The employer's contribution can range from 10% to 12% of the employee's salary, depending on the risk associated with their job. These contributions are capped at five times the minimum wage.
• Payroll Compliance: Employers must comply with Venezuelan payroll laws and regulations, including accurate calculation and timely payment of salaries. They must also maintain proper records of all payroll transactions.
• Year-End Reporting: Employers are responsible for year-end tax reporting, summarizing employee earnings and tax withholdings for the year. This information is submitted to the tax authorities.

Employee Deductions

• Income Tax (ISLR): Income tax is deducted from employee salaries based on a progressive tax system. The applicable tax rate depends on the employee's total taxable income, ranging from 6% to 34%. The income tax brackets are defined in Tax Units (UT).
• Social Security Contributions (SSO): Employees contribute to social security programs through deductions from their salaries. The employee contribution rate varies based on factors such as salary and the specific social security program.
• Other Deductions: Other deductions may include union dues, insurance premiums, or court-ordered deductions, where applicable.

Tax Year and Filing Deadlines

• Tax Year: The tax year in Venezuela is the calendar year (January 1st to December 31st).
• Tax Filing Deadline: The deadline for filing annual income tax returns for employees is typically within three months after the end of the tax year (March 31st). However, for those with specific income levels or self-employment income exceeding certain thresholds, filing requirements and deadlines may vary. Employers are responsible for providing employees with the necessary documentation to file their returns.

Please note: This information is based on the available data and is current as of February 5, 2025. Tax laws and regulations can change, so it is always recommended to consult with a tax advisor for the most up-to-date information.