From 1 January 2001, Venezuela changed its territorial income tax system to include non territorial income tax; in other words, a Worldwide Tax System. This change meant that all contributors who have operations with related parties were forced, in a tax manner, to prepare or perform a Transfer Pricing Study in order to determine their incomes, costs and deductions. Failure to comply with the Transfer Pricing Study was not subject to any penalty whatsoever.
As of 16 February 2015, a new National Tax Code is in effect which, among other things, increases in a substantial and exaggerated way the penalties for not complying with both formal and material duties.
According to the Code, non compliance of the formal duty to maintain or keep the supporting documentation and notes of the transfer pricing calculation, will be penalised with the closure of the office, store or establishment, for ten continuous days, in the event of owning the asset; plus one thousand (1.000 T.U.) tax unities. In the event that the infringer will be a 'Special Passive Subject', the penalty will be increased up to three thousand (3.000 T.U.) tax unities. The amount of the penalty will change over the course of time, because the tax unity monetary value is adjusted on a yearly basis, according to the inflation level of the previous year.
In monetary terms (US$), the amount could be more or less US$ 800, but if the infringer is a 'Special Passive Subject' the penalty is up to US$ 2,400 (This amount will rise in the course of time, as described in the aforementioned paragraph).
The penalty is imposed by the servicio nacional integrado de administración aduanera y tributaria seniat in every taxing process in order to verify complying with the formal tax duties.