Bolivia
Financial Year
- From April 1 to March 31 (Industrial, oil and construction companies)
- From July 1 to June 30 (Rubber, chestnut, agricultural, livestock and agro-industrial companies)
- From October 1 to September 30 (Mining companies)
- From January 1 to December 31 (Commercial, banking, services, insurance, and other companies not included in the above)
Currency – Bolivian Peso (Bs)
Corporate Tax Summary
Residency – Legal entities are considered residents if they are incorporated in Bolivia in accordance with national laws. Foreign legal entities are considered residents if they establish a formal domicile within the national territory of Bolivia and complete all the formal procedures required by law.
Tax Basis – Bolivia has a tax system that is made up of national, departmental, and municipal taxes.
National taxes are those collected by the National Tax Service (SIN).
Departmental taxes are those that are collected by the governors of each department.
Municipal taxes are those that are collected by the mayors of each municipality.
Resident companies pay indirect taxes (VAT, IT, ICE, IEHD and IDH) and direct taxes (RC-IVA, IUE, IPBI, IPV, ITF, IJ and IPJ).
A detail of taxes in force in Bolivia are as follows:
| Tax | Aliquot and Tax Basis | Reference |
| IVA – VALUE ADDED TAX | 13% of the net sale price. | Regular sales of private property. Rental of movable and/or real estate property. General services and construction contracts. Final imports. Financial lease (leasing) with movable property. |
| IT – TRANSACTIONS TAX | 3% of gross income earned. | Gross income accrued, obtained from the period of the taxable activity, lucrative or not: – Trade. – Industry. – Profession. – Office. – Rental of goods. – Contracting of works. – Provision of services. – Free transfer of private property, real estate, and rights. – Any other activity. |
| IUE – INCOME TAX | ||
| COMPANIES | 25% of taxable net income. | Taxable net profit (Gross profit minus deductible expenses). |
| FOREIGN BENEFICIARIES | EFFECTIVE RATES: a) 12.5% for remittances abroad for Bolivian source income. b) 4%for activities partially conducted in the country c) 1.5% or 2.5% for remittances abroad for activities partially conducted in the country, as appropriate. | Profits from Bolivian sources sent abroad. Activities partially conducted in the country. |
| Additional rate (A.A.) to the MINING IUE. | 12.5%for sale of concentrates or raw minerals. 7.5% for production and/or sale of molten bullion or bar, refined ingots or other manufactured goods or industrialized products based on minerals and metals. | Additional profits generated by favorable price conditions for minerals and metals. |
| Additional rate (A.A.) to the FINANCIAL IUE. | 5% of taxable net income. | Profitability coefficient with respect to equity when it is greater than 6%. |
| Additional rate (A.A.) to extraordinary profits | 25% of net profit for the period; deducting concepts established in Article 51 bis of Law No. 843. | Annual net profit resulting directly from extractive activities of non-renewable natural resources. |
| RC-VAT COMPLEMENTARY REGIME TO THE VALUE ADDED TAX | ||
| Direct taxpayers | 13% on the total amount of income received and allowed deductions. | Rental, sub-rental of real estate or furniture, rights, and concessions. Placement of capital, interest, returns and other income from the investment, which do not constitute income subject to the IUE. S.A. director fees and trustees. Salaries of personnel hired locally by diplomatic missions, org. international and foreign governments. Income from people hired by the public sector (line consultants). Leases (alleged). Those coming from the exercise of the profession or trades freely or independently. |
| Taxpayers in a dependency relationship | 13% of the difference in income and allowed deductions. 13% of the difference in income and allowed deductions, the non-taxable minimum is additionally reduced by 50%. | Wages and salaries of dependents. Wages, bonuses, overtime, bonuses, allowances, etc. Travel expenses and similar. Income of people hired as dependents abroad. |
| ICE – SPECIFIC CONSUMPTION TAX | It varies depending on the good: 1 Percentage rates on the net sales price. 2 Specific rates on sales volumes expressed in liters or the quantity expressed in units. | Sales in the domestic market and definitive imports of goods for final consumption: – Cigarettes and tobacco. – Refreshing drinks. – Alcoholic beverages. – Undenatured alcohols. – Motor vehicles. |
| IEHD – SPECIAL TAX ON HYDROCARBONS AND THEIR DERIVATIVES | Specific fees per liter. | Sales of hydrocarbons and their derivatives of national origin in the domestic market and the import of these products. |
| IDH – DIRECT TAX ON HYDROCARBONS | 32% of the total hydrocarbon volumes measured at the inspection point (wellhead). | Hydrocarbon production throughout the national territory. |
| ITF – FINANCIAL TRANSACTIONS TAX | 0.30% on the gross amount of taxed transactions. | Only transactions in foreign currency or national currency with maintenance of value, related to the following operations: – Withdrawals or deposits in checking accounts and savings accounts. – Payments or transfers of funds. – Acquisition of management checks or other similar financial instruments that exist or will be created. – Transfers or shipments of money abroad or within the country, through financial institutions or other entities. – Delivery or receipt of own or third-party funds through other payment systems. – The redemption or withdrawal of fixed-term deposits. – Participation in investment funds. |
| IJ – GAMBLING TAX | 30% (for games of chance or raffles) of gross income less VAT. 10% (for business promotions) of the total value of the prices. | Games of chance and raffles. Business promotions. |
Individual Tax Summary
Residence – Natural persons residing in the Plurinational State of Bolivia, with wealth located or placed in the national territory and/or abroad or for a value greater than Bs30,000,000 – or its equivalent in foreign currency, as of December 31 of each year are subject to the IGF – TAX ON GREAT FORTUNES.
Conditions – People who meet any of the following conditions are considered residents:
- Bolivians by birth are people born in Bolivian territory, except for children of personnel on diplomatic missions; and people born abroad, to a Bolivian mother or father.
- Foreigners and foreigners in legal status, with more than three years of uninterrupted residence in the country under the supervision of the State, who expressly express their desire to obtain Bolivian nationality and comply with the requirements established in the law.
- The residence time will be reduced to two years in the case of foreigners who are in one of the following situations:
- 1) Who have a Bolivian: spouse, daughters or sons, or substitute parents. Foreign citizens who obtain citizenship by marrying Bolivian citizens will not lose it if widowhood or divorced.
- 2) If they perform military service in Bolivia at the required age and in accordance with the law.
- 3) If, for their service to the country, obtain Bolivian nationality granted by the Plurinational Legislative Assembly.
- The residence time to obtain nationality may be modified when there are, by way of reciprocity, agreements with other states, primarily Latin American ones.
- Bolivian men and women who marry foreign citizens will not lose their nationality of origin. Bolivian nationality will not be lost by acquiring foreign citizenship either.
- Foreigners who acquire Bolivian nationality will not be forced to renounce their nationality of origin.
Tax Basis – The following rate scale will be progressively applied to the Tax Base of the tax:
- From 30.000.001.- to 40.000.000.- 1,4%
- From 40.000.001.- to 50.000.000.- 1,9%
- From 50.000.001.- and more. – 2,4%
The taxpayer must submit an annual declaration as detailed below:
| Form | Declaration |
| Form. 022 for resident individuals (payment in national currency) | ANNUAL Up until the last business day of March. |
| Form. 023 for Non-resident natural persons (payment in US dollars) |
Goods and Service Tax (GST)
The purchase of private property and services from natural persons and undivided estates that are not supported by the corresponding invoice will be subject to withholding of the following taxes:
| TAX | ||
| Purchase of movable property from natural persons. | 5% Tax on Business Profits (IUE) | 3% Transaction Tax (IT) |
| Purchase of services from natural persons. | 13% Complementary Regime to Value Added Tax (RC-VAT) | |
| Those who pay, credit or remit income from Bolivian sources to Beneficiaries abroad. | 12.5% Taxes on Profits of Foreign Beneficiary Companies (IUE-BE) | |
Other Taxes Payable
The Departmental Domain Tax is as follows:
- Departmental Tax on the Free Transfer of Assets – IDTGB.
The Municipal Domain Taxes are the following:
- Municipal Transfer Tax – IMT.
- Real Estate Property Tax – IPBI.
- Motor Vehicle Property Tax – IPVA.
Last update: 28.05.2024