header_logo
cancel1

Venezuela

Last Verified on Wednesday 28th June 2017

    Labour and Employment

    • Venezuela

      Professional athletes, according to the labour laws of Venezuela, are workers and therefore enjoy all the protections and rights under the labour and social laws.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      The obligation of social security rests with the contracting entity and includes: registering professional players in the system of social security, and protecting them from harm (physical or psychological) or any event that may affect the performance of their sport or activity.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      Employment contracts that are carried out with professional players usually a start date and completion is established and an employer can not dismiss them before the date of termination. If they do so, according to the labour laws of the country, they will have to compensate the player with an amount commensurate with the time remaining on the contract. If the person terminating the contract before maturity is the player, the legislation does not impose any compensation or consequences in favour of the employer; but here the rule (FIFA Regulations on the Status and Transfer of Players) establishes a penalty on the player if the contract ends before the completion. This results in a serious problem because some hold the view that national legislation should prevail since it is of public order, while others say the FIFA rule should apply.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      We have found that many players give up their rights of image and voice for your employer, but it should be noted that this only applies to the rights of image and voice in the activities of the team and not his or her private life or in general.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      Yes, in Venezuela it is the Professional Footballers' Association UNICA of Venezuela (AUFPV) , a civil non-profit association which is not involved with player salaries.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      Sports contracts typically use an indemnification clause established for the employer if the player decides to unilaterally terminate such employment before maturity. We believe that this clause in Venezuela is illegal because it violates the provisions of the labour laws; which are of public order, but the rule of FIFA (Regulations on the Status and Transfer of Players) states that the player has to pay a monetary compensation for this.

      Last verified on Wednesday 28th June 2017

  • Commercial and Regulatory

    • Venezuela

      Teams may hire minors, but prior to doing so must meet certain requirements and obtain permits established in the national legislation and the Venezuelan Federation of Football (FVF).

      Last verified on Wednesday 28th June 2017

    • Venezuela

      Generally in Venezuela these are all non-profit civil associations or foundations, but we have found a Club that has legal personality.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      The audiovisual rights of the parties are in the hands of the organisers, in this case the FVF and the Association of Clubs, but since 2016, the television broadcast rights to the national tournament have transferred to a foreign operator to the country, which transmits first division games via cable television.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      In Venezuela third parties have so far not invested in players as in other countries, what we have are rates established by the FVF that must be paid by transfers or transfer of players.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      Since 2007 Venezuela has had a Tax Law on Gaming Activity, which regulates activities in the exploitation or operation of lotteries, entertainment such as horse racing, the operation of casinos, bingo halls, slot machines, as well as the organisation generally of wager games and gambling.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      Yes, they are banned all advertising material that incites people to smoke cigarettes or drink liquor, as well as any other act against morality, decency and advertising, any that is racist, homophobic, etc.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      For professional football, there is a House of Conflict Resolution at the FVF headquarters which resolves disputes between players and teams. Unfortunately, said chamber has not been set up in an orderly way by Fifa Circular 1010 dated 20 December 22005, Circular 1129 dated 28 December 2007 and Circular 1171 dated 24 November 2008. It only acts as a lawyer appointed by the Assembly of the Federation.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      The National Anti-Doping Commission and Noxious Substances to Health in Venezuela has finally optimised its operation and therefore it is essential to adapt to the current situation, based on developments in international standards in the inherent technical aspects of doping and its control. The restructuring is also aimed at assisting in the fight to eliminate doping in sport.

      Last verified on Wednesday 28th June 2017

  • Intellectual Property

    • Venezuela

      Article 60 of the Constitution of the Bolivarian Republic of Venezuela states that everyone has the right to protection of their honour, privacy, intimacy, self-image, confidence and reputation. The law will limit the use of information technology to ensure the honour and personal and family privacy of citizens and the full exercise of their rights.

      It is forbidden to register the names of athletes as marks; what is customary is to register pseudonyms or logos associated with a player.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      Indeed in Venezuela there is a public body called the Autonomous Service of Intellectual Property under the Ministry of Popular Power for Industry and Commerce, which has authority over these issues.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      Yes, all have their trademarks, from the FVF, through the league and the Clubs themselves. In fact is a requirement of being enrolled in the national tournament.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      As mentioned above, there is a Tax Law on Gaming Actitivy, which regulates the activities of the farm or operation of lotteries and entertainment such as horse racing, the operation of casinos, bingo halls, slot machines, as well as the general organisations of game and chance. What we have observed outside the framework of the law is a form of gambling called Parley, the legality of which is unclear.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      As mentioned earlier, the image rights of individuals are protected by the National Constitution and are only useable by clubs and players authorised to own the team activities. In any event there are companies that seek out and attract players to serve as models in advertising campaigns. The terms of the contract vary depending on the player.

      Last verified on Wednesday 28th June 2017

  • Tax and Finance

    • Venezuela

      Any activity that generates profits is subject to pay taxes to the state in a certain percentage of them (Act and Income Tax Regulations).

      Last verified on Wednesday 28th June 2017

    • Venezuela

      The enrichments for sports activities in Venezuela are taxable with the income tax (income tax).

      Sportspersons resident in Venezuela must pay income tax in Venezuela for their enrichments worldwide under the general rules applicable to residents in Venezuela. When revenues come from activities outside of Venezuela, in principle, they may designate the tax to be paid abroad, up to the limit specified in the Income Tax Law, which establishes the method of progressive complaint. But if the income is for activities in a country with which Venezuela has signed an agreement to avoid double taxation, the OECD Model Convention on Income and Capital applies to both the function of the state to tax income, as the method to be applied to apply avoid double taxation.

      Athletes resident in Venezuela, like any natural person resident in Venezuela, will pay income tax on their net enrichments, based on rate No. 1, taxable enrichment with progressive rates ranging from 6 per cent to 34 per cent. The determination of net enrichment will be subtracted from the gross income and deductions costs permitted by law, and reliefs and rebates shall apply for determining the tax payable.

      Non-resident athletes in Venezuela must pay income tax for the enrichments they receive for their sports activities in Venezuela, or whose cause or source is in our country, unless they are a resident of a country with which Venezuela has signed an agreement to avoid double taxation (CDI), to establish a different regime. The net enrichment of non-resident athletes in Venezuela shall be 90 per cent of gross income. This net enrichment will apply at the rate of 34 per cent.

      Payments to non-resident athletes in Venezuela for activities in the country are subject to withholding income tax when the payer is a legal person, partnership or community. The retention rate is 34 per cent on 90 per cent of paid or credited to an account, equivalent to the total tax payable.

      When a resident athlete in Venezuela earns revenue for sports activities in a country with which Venezuela has signed a CDI, or when a resident athlete in a country with which Venezuela has signed a CDI for income from activities in Venezuela or whose cause is in our country, the rules of the agreement signed with the respective country, with priority on the Income Tax Law, shall apply.

      All taxation treaties signed by Venezuela conform generally to the OECD Model Convention, which contemplates a method of shared taxation with respect to income obtained by athletes. The state of residence has the right to tax the income of athletes regardless of where the income has been obtained. In turn, the state of source has the right to tax the income of athletes within their territories, in accordance with its domestic law and without limitation or fixing a maximum rate. In the agreement signed with the United States the amount from which the state of source may tax the athlete's income is US$6,000. Above that amount, the source state may tax the entire enrichment.

      Similarly, all taxation treaties signed by Venezuela regulate the course of the income attributed to someone other than the athlete referred to in paragraph 17.2 of the OECD Model, whereby the state where the activity is carried out may tax the income of athletes received through another person. Conversely, the agreement with the United States and the agreement with Switzerland provides for the non-application of this paragraph if it is established that neither the athlete nor persons related thereto participate directly or indirectly in the profits of the person to whom the pay is credited.

      Some of the double tax agreements entered into by Venezuela contain other paragraphs in which, departing from the general principle of taxation in the state of operation, tax is excluded in the source state and tax reserves to the state of residence of the athlete, when actions are financed by public funds the state of residence or of both states or when made through a sports exchange programme.

      Decision 578 of the Andean Community of Nations provides for the common system to avoid double taxation and prevent tax evasion among its member countries. According to Decision 578, athletes’ income will only be taxable in the member state where the activity has been performed.

      Last verified on Wednesday 28th June 2017

    • Venezuela

      The country is currently trying to apply this because it published on the FVF website rules governing Chapter IX: In compliance with the provisions of the FIFA Regulations "Licensing Club", whose objectives are to: "manage a club professionally, having at its disposal well-trained, qualified and experienced, with a certain degree of knowledge and specialist experience”. The award scheme Club Licensing has the following general objectives, according to a decision taken at the FIFA Congress held in Munich in 2006, incorporated in its Statutes in Congress Sydney 2008, the statutes of the South American Football Confederation Congress approved in Asuncion in August 2012 and the Statute of the FVF in reforming the same on 18 October 2012, to:

      • safeguard the credibility and integrity of club competitions;
      • improve the level of professionalism in the football sphere;
      • promote sporting values ​​in accordance with the principles of sportsmanship and a safe environment for parties;
      • promote financial transparency of clubs;
      • promote transparency of ownership of clubs; and
      • promote transparency in the control of clubs.

      Last verified on Wednesday 28th June 2017

Latin Lawyer gives you a fantastic platform to promote your legal expertise to our extensive readership base

Become an author

Contributing editors

Authors