The recent increase in Venezuela’s tariff tool was set at a rise of 377.7% compared to its previous value fixed two years ago. Photo: Archive
Guacamaya, June 5, 2025. With the recent increase of the Unidad Tributaria (UT) in Venezuela, it is important to revisit the understanding of its function as well as its impact on everyday life. This is especially relevant in a critical economic context where such adjustments can affect both the citizen’s pocket and the tax obligations of companies and individuals.
Last Monday, June 2, the Servicio Nacional Integrado de Administración Aduanera y Tributaria (Seniat) published in Official Gazette No. 43,140 the administrative provision that raises the value of the UT from 9 to 43 bolívares. This update represents an increase of 377.7% compared to the previous value from May 2023, when it rose from 0.40 to 9 bolívares, clearly reflecting recent inflation.
What is the Unidad Tributaria?
To clarify any doubts, the Unidad Tributaria is nothing more than a reference value, expressed in bolívares, used to calculate amounts related to taxes, fines, and other national levies. Its main function is to be periodically adjusted to avoid the mismatch of amounts or the loss of their effectiveness in tax collection.
The Unidad Tributaria (UT) was created in 1994 through the Organic Tax Code. The measure arose as a response to the need to save material and human resources amid inflation caused by the continuous devaluation of the local currency. This avoids having to modify laws or regulations every time there is inflation, simplifying administrative processes.
What is the Unidad Tributaria used for?
In Venezuela, the UT is mainly used to calculate amounts for national taxes such as the Impuesto Sobre la Renta (ISLR), to determine the value of fines, sanctions, and other tax obligations of the country, and it also serves as a reference for tax and administrative procedures under Seniat’s jurisdiction.
Although it has had other uses in the past, such as for calculating labor benefits, the latest provision states that the UT can only be used for determining national taxes under Seniat’s control. Therefore, it cannot be used by other public entities as a reference for labor benefits or to calculate fees or contributions derived from services.
Why is the Unidad Tributaria adjusted?
In an economy like Venezuela’s, marked by high and persistent inflation, amounts in all sectors lose their real value quickly, including the tax sector. To maintain the effectiveness of tax collection, the value of the Unidad Tributaria is periodically adjusted. This update ensures that tax collection remains relevant for the State.
With the latest increase, the UT has undergone a total of 34 adjustments since its creation more than three decades ago, in 1994. While annual adjustments are most common, there have been periods of high inflation, such as in 2018, when up to four increases were recorded in a single year. This demonstrates the need to adapt tax amounts to economic volatility.
How does the new UT value affect you?
The UT increase directly impacts the calculation of Impuesto Sobre la Renta (ISLR), raising the income threshold for declaring and paying this tax. Although this may mean a higher contribution from those with medium and high incomes, the law exempts those with gross annual income below 1,500 UT from declaring.
However, the amount of fines and sanctions, applicable to any citizen who commits an infraction defined by law, is expressed in UT, so its value in bolívares increases. Additionally, other national taxes such as fees or levies calculated based on the UT will also be adjusted, directly affecting citizens’ finances.
According to the latest update, for taxes settled annually, the UT value in effect at the end of the fiscal year will apply—which means the new value if the fiscal year is still open. For taxes settled in periods other than annual, the UT value at the time of settlement will be used.
In summary, the UT is a fundamental tool within the Venezuelan tax system, designed to keep tax amounts, fines, and sanctions updated against inflation. The recent increase from 9 to 43 bolívares aims to correct distortions and optimize fiscal collection. Although its use is limited to national taxes, its impact will be felt in the pockets of Venezuelans.
