Agreement with Venezuela to prevent double taxation on income from sea or air navigation activity

This Convention applies to Income Taxes payable by each of the Contracting States, regardless of the system of their levy.

The current taxes to which this Agreement applies are:

1. As far as Venezuela is concerned, the "Income Tax".

2. As regards Spain, the "Corporate Tax" and the "Personal Income Tax".

3. The Convention will also apply to future taxes of an identical or analogous nature that are added to or replace current ones.

For the purposes of this Agreement, the expressions cited below will mean:

1. The term "enterprise of a Contracting State" means an enterprise carried on by a natural or legal person who is considered a resident, for tax purposes, of one of the Contracting States by the laws in force in that State. If you are a resident of both, for the purposes of this Agreement, it will be understood that you are a resident of the State in which your seat of effective management is located.

2. "Exercise of maritime or air navigation in international traffic" means the activity of transportation by sea or air of people, livestock and fish, mail or merchandise carried out by the owner, charterer or lessee of ships or aircraft, as well as any other preparatory, auxiliary or complementary activity related to the same, except when the activity is carried out between points located in a single Contracting State.

3. The terms "a Contracting State" and the "other Contracting State" designate Spain and Venezuela, as required by the context of the Convention.

4. The term "Competent Authorities" designates, in the case of Venezuela, the General Sectoral Revenue Directorate of the Ministry of Finance, and in the case of Spain, the Minister of Economy and Finance, or any other authority to which the Minister delegates.

1. For the application of this Convention by a Contracting State, any expression that is not defined in its articles must be interpreted in the meaning attributed to it in the tax legislation of said State.

2. The competent Authorities may carry out consultations when they deem it appropriate, in order to ensure the reciprocal application and compliance with the principles and provisions of this Convention.

3. Such consultation may be requested by any of the Contracting States and the meetings for its resolution must begin within sixty days, counted from the date of the request.

1. Income obtained by a company of a Contracting State, from the exercise of maritime or air navigation, in international traffic, is exempt from taxation in the other Contracting State.

2. The same rule will apply to the participations that a company from a Contracting State has in joint activities or "pools" of any kind for the exercise of maritime or air navigation.

3. The profits that a company of a Contracting State obtains from the disposal of ships or aircraft operated in international traffic, or of movable property used for the operation of these ships or aircraft, are exempt from taxation in the other Contracting State.

4. The provisions of the previous paragraphs will also apply to the air navigation companies of both Contracting States, designated in accordance with the relevant provisions of the Convention on Air Transport between Venezuela and Spain of July 25, 1972.

5. The regime established in the previous paragraphs will not apply to income obtained in the exercise of the transportation of hydrocarbons.

6. The maritime and air companies of a Contracting State must present, in accordance with the internal legislation of the other Contracting State and for purely statistical purposes, a declaration of the economic results of their maritime or air transport operations and the operations related thereto, carried out. in the territory of this Contracting State.

1. Each of the Contracting States will notify the other in writing, as soon as possible, through diplomatic channels, of compliance with the procedures required by their respective laws to put this Agreement into effect.

2. The Agreement will enter into force on the date of the last of these notifications and will take effect with respect to income obtained from the financial year that begins immediately after its entry into force.

3. Notwithstanding the provisions of the previous paragraph, the taxpayers to whom it would have been applied, if the corresponding exchange of Instruments of Ratification had been carried out, will be exempt from tax on income derived from the exercise of maritime or air navigation in international traffic. the Agreement signed between both Contracting States on February 2, 1979, until the fiscal year, inclusive, in which this Agreement enters into force.

In such case, the Agreement will cease to have effect for income obtained from the financial year that begins immediately after that of the denunciation.