Bolivia

2026 General State Budget

In January 2026, Law 1705 was enacted to approve the government budget for the fiscal year 2026, which authorises the Ministry of Economy to raise public debt in external capital markets for an amount up to 3.5 billion United States dollars (USD) or its equivalent in other foreign currencies with a tax exemption on related interest. In particular, Law 1705 exempts from corporate income tax (CIT) interest income from public debt through the issuance of securities in external capital markets, including the provision of legal, financial, and other advisory services related to the operation of public debt in external capital markets and carbon market operations.

Tax Relief Law

On 27 May 2026, the Bolivian Government approved Law 1733 (Tax Relief Law) introducing several mechanisms that allow Bolivian taxpayers to regularise outstanding tax liabilities through the below alternatives:

• Debt forgiveness (condonation): Applicable to tax and customs liabilities, including penalties for fiscal periods up to December 2017 provided tax liabilities do not exceed BOB 10 million. Furthermore, tax and customs liabilities corresponding to fiscal year 2020 qualify for this benefit regardless of the amount of the tax/customs liabilities.
• Tax/customs regularisations for fiscal periods (2018-2025): For fiscal periods between 1 January 2018 and 31 December 2025 (excluding 2020), taxpayers can benefit from full waiver of interest and penalties, and 50% of restatement by inflation of unpaid taxes if taxpayers pay in cash said unpaid taxes, together with 50% of restatement by inflation. Deadline to regularise the above is 120 days, which may be extended until 31 December 2026.

Tax incentives on the import and sale of capital goods

Law 1613, enacted in 2025, establishes tax incentives in connection with:

• the import of crude oil, gasoline for motor vehicles, and diesel oil by legal entities and individuals (i.e. exemption of payment of value-added tax [VAT] for importation of the previously mentioned goods)
• domestic sales of soybean, cusi, totaí, and other cultivated or wild species and/or their derivatives, exclusively intended to produce biodiesel and/or ecological diesel for Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) plants (i.e. exemption of payment of transaction tax and application of a zero-rate VAT in respect of local sales), and
• the total or partial reinvestment of profits or dividends obtained in Bolivia by non-resident shareholders (i.e. reduction of withholding taxes [WHTs] from 12.5% up to 3.125% pursuant to fulfilment of certain conditions) based on the percentage of reinvestment of profits/dividends.

Supreme Decree 5516 establishes a 0% customs duty rate on the importation of machinery, equipment, and functional units intended for the food, agri-food, textile, and metallurgical industries, as well as for the importation of tires, lubricating oils, batteries, and automobile vehicle spare parts as identified therein. This incentive has a period of one year until 31 December 2026.