Taxation

Taxation in Bolivia is governed by the Bolivian Tax Code, which was introduced in 1986 and has been amended several times since then. The tax system in Bolivia is administered by the National Tax Service (Servicio de Impuestos Nacionales) under the Ministry of Economy and Public Finance.

Personal income tax in Bolivia is levied on all individuals who earn income in Bolivia, regardless of their nationality or residency status. The tax rates are progressive and range from 0% to 13%, depending on the income level. The first BOB 36,000 of annual income is exempt from taxation, and there are various deductions and credits available to reduce the tax liability.

Corporate income tax is levied on all companies operating in Bolivia. The standard corporate tax rate is 25% on the net taxable income, and there are additional taxes on specific industries such as mining and hydrocarbons. Small and micro-enterprises with annual revenues of less than BOB 2,000,000 are eligible for a reduced tax rate of 12.5%.

The tax year in Bolivia runs from January 1st to December 31st. The deadline for filing personal income tax returns is March 31st of the following year, while the deadline for filing corporate tax returns is April 30th. Taxpayers are required to make advance tax payments on a monthly basis, with the due dates falling on the 13th of each month.

Payments can be made online or in person at designated banks. The penalty for late payment or non-payment of taxes can range from 1% to 2% of the tax due, depending on the length of the delay. Additionally, interest may be charged on any outstanding tax liability.

Overall, taxation in Bolivia is relatively complex, and the government has taken steps in recent years to simplify the tax system and make it more user-friendly for taxpayers. However, tax evasion is still a significant problem in Bolivia, and the government has been working to improve tax collection and enforcement efforts.