🇧🇴 Bolivia Tax Guide — Income, Corporate & VAT Rates

The tax rates in Bolivia range from 0% to 25% for personal income, with a corporate tax rate of 25%, and a value-added tax (VAT) rate of 13%, among other taxes that expats and individuals should be aware of when navigating the country's tax system.

Tax System Overview

Bolivia has a territorial taxation system, where individuals and companies are taxed only on income earned within the country's borders. However, individuals who are considered tax residents in Bolivia are also subject to taxation on their worldwide income. To be considered a tax resident, an individual must have a permanent home in Bolivia, or have spent more than 183 days in the country within a calendar year.

The Bolivian tax system is overseen by the Servicio de Impuestos Nacionales (SIN), which is responsible for collecting and enforcing taxes. The tax year in Bolivia runs from January to December, and taxpayers are required to file their tax returns by March 31st of the following year. Bolivia has a network of double taxation treaties with 15 countries, which helps to prevent double taxation and fiscal evasion.

Personal Income Tax

Corporate & Business Tax

• The corporate tax rate in Bolivia is 25%, which applies to all companies, regardless of size or industry.
• Small business incentives are available for companies with annual revenues of less than 1 million BOB, which includes reduced tax rates and simplified tax filing procedures.
• Bolivia has several free zones, which offer tax exemptions and other incentives for companies that operate within these zones.
• Companies must register with the SIN and obtain a tax identification number before commencing operations.
• Companies are required to file their tax returns and pay any outstanding tax liabilities by the deadline to avoid penalties and interest.

VAT / Sales Tax

• The standard VAT rate in Bolivia is 13%, which applies to most goods and services.
• Reduced rates of 5% and 0% apply to certain goods and services, such as basic foodstuffs, healthcare services, and educational services.
• Exemptions are available for certain goods and services, such as financial services, insurance services, and international transportation services.
• Bolivia has a tourist refund scheme, which allows foreign tourists to claim a refund of VAT paid on certain goods and services.

For Expats & Foreign Workers

• Tax residency rules apply to expats and foreign workers who spend more than 183 days in Bolivia within a calendar year.
• Bolivia has double taxation treaties with 15 countries, which helps to prevent double taxation and fiscal evasion.
• Expats and foreign workers are required to register with the SIN and obtain a tax identification number before commencing work.
• Expats and foreign workers may be eligible for social security benefits, including healthcare and pension benefits.
• Expats and foreign workers are required to declare their worldwide income, including income earned outside of Bolivia.
• Expats and foreign workers may be subject to remittance rules, which require them to report and pay tax on income remitted to Bolivia.

Crypto & Investment Income

• Investment income, including dividends, interest, and capital gains, is subject to taxation in Bolivia.
• Cryptocurrency is considered a foreign currency for tax purposes, and is subject to taxation as such.
• Dividends paid to non-resident shareholders are subject to a withholding tax of 10%.
• Capital gains are subject to taxation at a rate of 25%, or may be included in income and taxed at the applicable tax rate.