On 10 August 2023, the Venezuelan National Assembly issued the Organic Law for the Coordination and Harmonization of the Tax Powers of States and Municipalities (“Law“)1. The Law will enter into force on 8 November 2023, 90 continuous days after its publication in the Official Gazette. The Law sets forth that from its entry into force, the provisions of state laws and municipal ordinances establishing different tax rates from those allowed by the Law will be repealed. Likewise, states and municipalities will have an additional period of 90 continuous days, counted as of the entry into force of the Law, to adapt to the Law their legal-tax instruments in force. The Law confirms that the Organic Tax Code (OTC)2 will be of subsidiary application to the taxes connected to states and municipalities.
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1 Organic Law for the Coordination and Harmonization of the Tax Powers of the States and Municipalities, published in Official Gazette No. 6.755 on 10 August 2023
2 Organic Tax Code, published in Official Gazette No. 6.507 Ext on 20 January 2020