Branch income is subject to the same tax applicable to other types of Bolivian corporations (i.e. CIT of 25%). However, the net profits of Bolivian branches are deemed to be distributed to the head office at the annual filing due date for CIT (i.e. 120 days after the fiscal year-end); consequently, a Bolivian branch must withhold 12.5% on such deemed distributed profits. Note that this can be avoided as long as the head office decides to reinvest the Bolivian branch's net profits.