In tax matters, the Patent of industry and commerce is a tax levied on the gross income originated from any economic activity of industry, commerce, services or of a similar nature, whose purpose is profit. It is necessary to clarify that it must be carried out on a regular basis in the jurisdiction of a certain territory and be subject to a commercial establishment, premises, office or physical place.
The patent refers to the license or permit granted to a natural person, legal entity or of similar nature, to operate in a certain municipality; in general terms, this patent can be defined as the tax paid by natural or legal persons.
Basically, those individuals or legal entities that carry out an industrial, commercial or similar activity are obliged to obtain a municipal license and pay the tax in the municipal jurisdiction where they carry out their activities.
The tax on economic activities dates back to medieval times, when the feudal lords or sovereigns delivered a letter-patent to their subjects, which was an authorization for the subject to exercise a certain activity, whether industrial, commercial or a trade, and was considered a real tax, which was the consideration for the service provided by the sovereign in allowing the vassal to carry out his activities.
There are cases such as Venezuela, where in the constitution it appears since 1830, from the entry into force of the constitution of 1999, it is no longer called patent of industry and commerce, and acquires the name of tax on economic activities, industry, commerce, services or similar.