Venezuela national tax harmonization agreement has been signed by the council representing 305 municipalities
Venezuela has officially signed national tax harmonization agreements for its 305 municipalities. They agreed to use the country’s cryptocurrency – Petro (PTR) – as the unit of account for tax payments.
Venezuela taxes with Petro
The Bolivarian Mayor’s Council signed Venezuela’s National Tax Harmonization Agreement, placing the Petro as a payer of taxes and fines in 305 municipalities. The country is comprised of 335 centrally governed cities, consolidated into 23 states and capital counties.
Delcy Vice President Rodríguez said:
“The prohibition on tax collection in foreign currency was established because the current taxable unit is the Petro (PTR). It is also the first time in Venezuelan history that a harmonized urban tax agreement has been established. ”
Venezuelan President Nicolas Maduro fully supports the signing because this agreement ensures that all taxes are harmonized to avoid double taxation.
“To achieve this, Venezuela has established a taxpayer registry and is managed by the Bolivarian Mayor-Council. This agency will act as a digital tool for consultation and exchange of information. And to monitor companies with branches in different cities. In the future, this agency could also be used to cross-check information with the national tax system. ”
Rodríguez further notes that the tax harmonization agreement also helps to simplify administrative procedures, such as reducing the reference code for economic activities, industries, and businesses from 600 to 30.
Sharing Rodríguez’s feelings, Mayor Erika Farias commented:
“This tax harmonization, which we reached after a massive debate between the 305 mayors of Bolivar, is an unprecedented event in our country.”
During the signing, Mayor José Alejandro Teran emphasized that using the Petro as a taxable unit is not only innovative but also helps to protect against hyperinflation, which he sees as a result of sanctions by America.
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