Venezuela's draft oil law lets ministry set tax rates for each project
Key takeaways
- The law passed in January established a royalty cap of 30% and a new maximum integrated hydrocarbons tax of 15%.
- Instead, the draft document states that the Ministry of Hydrocarbons will review each operating company s business plan to determine the specific tax and royalty rates.
- Venezuela is attempting to attract foreign capital and rebuild its economy following the U.S. removal of President Nicolas Maduro at the start of the year.
Venezuela's draft oil law lets ministry set tax rates for each project Reuters Sun, May 17, 2026 at 5:59 AM GMT+7 2 min read May 16 (Reuters) - The Venezuelan government will retain power to set royalty and tax rates for private and foreign investors in oil and gas projects on a project-by-project basis under draft regulations of a new hydrocarbons law seen by Reuters on Saturday.
The law passed in January established a royalty cap of 30% and a new maximum integrated hydrocarbons tax of 15%. Industry experts had anticipated the accompanying regulations would specify the exact rates below those caps that private and foreign partners would pay.
Instead, the draft document states that the Ministry of Hydrocarbons will review each operating company s business plan to determine the specific tax and royalty rates.