Venezuela oil law gives ministry power over tax rates
Venezuela's draft oil regulations allow the ministry to set tax rates per project. The framework ends the state monopoly and permits private refining activities.
Venezuela will allow its Ministry of Hydrocarbons to set individual royalty and tax rates for private oil and gas projects. The draft regulations follow a January law that established a 30% royalty cap and a 15% maximum integrated tax. Investors now face project-specific negotiations rather than the fixed fiscal framework previously anticipated by industry experts.
### Discretionary Rates Replace Fixed Rules The Ministry of Hydrocarbons will review business plans from each operating company to determine specific fiscal terms. While the January law set maximum limits, the new draft regulations omit the exact rates for private and foreign partners. This shift gives the ministry authority to modify terms, including taxes and royalties, without approval from the National Assembly.
