Oil plays a major role in the economy of Venezuela. Venezuela is one of the largest foreign supplier of oil to the US. The government use oil revenue to stimulate manufacturing industries. Automobile assembly, food processing, and the manufacture of construction materials, steel and textiles are well established. The country also uses its rivers to great advantage as sources of hydroelectric power. Goods are primarily carried by ship, but Venezuela has a highly efficient highway system developed over recent years.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Venezuela. Forward planning is of the essence to optimize costs. Venezuela has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Venezuela, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Venezuela, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.