Ezel / IRS Rulings / 200848071

CCA 200848071: Venezuelan business-assets tax is covered but not treaty-creditable

Number
200848071
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Taxes Covered
Topics
Other topics
Code sections
§ Article 24(3)
Ruling dated
August 20, 2008
Publicly released
November 28, 2008
Source
View Official PDF

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This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2008, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2008
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that Venezuela's business-assets tax was a tax covered by the applicable treaty. It nevertheless was not creditable under the treaty. Article 24(3) limited the credit to Venezuelan income taxes, which did not include the business-assets tax.

Ruling snapshot

  • Question: Is Venezuela's business-assets tax creditable under the treaty?
  • Outcome: Advice given. The tax is covered but not creditable.
  • Key authorities: Treaty Article 24(3).

Full text (IRS public release)

ID: CCA_2008082010485236 Number: 200848071
Office: ------------ ------
Release Date: 11/28/2008

UILC: 9114.01-02

From: ---------------------
Sent: Wednesday, August 20, 2008 10:49:01 AM
To: -------------------------------------------------------------------
Cc: -------------------
Subject: RE: Venezuelan treaty & Business assets tax

I think the language is conclusive--although the Venezuelan business assets tax is covered, it is not
creditable under the treaty. The language of Article 24(3) makes this clear, as it only allows Venezuelan
income taxes to be creditable.

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