Venezuela, Bolivarian Republic of
Enacts new legal framework and new investment incentives for Special Economic Zones
20 Jul 2022
On 20 July 2022, the Government of Venezuela enacted the "Ley Orgánica de las Zonas Económicas Especiales", a new legal framework for Special Economic Zones (SEZ), with the objective of developing a new national productive model; promoting national and foreign investments in the country; fostering industrial development; contributing to export diversification and creating new sources of employment. The Act entered into force on the same date.
Under the Act, newly established SEZs can host investments in the following sectors: manufacturing, agro-industry, export and re-export, aeronautics and energy; R&D and production of systems, parts and components for telecommunications, information technology, waste management, and defense and military technology sectors; financial services; other service sectors such as tourism, hospitality and leisure;
Investment incentives include refund of import taxes and of other national taxes (conditions to be determined by Governmental decree).
Investment facilitation benefits include a single window mechanism to streamline, harmonize and automatize procedures, including a digital platform for investments in SEZs; the setting up of education and research centers to provide human capital training for investments in SEZs and a regime of free currency convertibility.
Finally, the new legislation imposes a viability review of SEZs established prior to the enactment of the law, in order to determine whether they should be discontinued, maintained or adjusted to the new regime within a period not to exceed 180 days.
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Type:
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Treatment and operation (Capital transfer and FOREX)
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Promotion and facilitation (Investment facilitation , Investment incentives, Special economic zones)
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Industry:
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Not industry specific
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Manufacturing (Manufacture of food products, beverages and tobacco products, Manufacture of rubber and plastics products, and other non-metallic mineral products, Manufacture of fabricated metal products, except machinery and equipment, Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c., Other manufacturing)
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Services (Water supply, sewerage, waste management and remediation activities, Accommodation and food service activities, Arts, entertainment and recreation)
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