Value-added tax (VAT)
VAT is levied on the sale of movable goods and provision of services carried out within Bolivian territory at a rate of 13%, including definitive importations. Since this tax is included in the final price, the effective tax rate amounts to 14.94% (13%/87%).
Definitive importations are also subject to customs duties at the following rates: 0%, 5%, 10%, 15%, 20%, 30%, and 40%, depending on the product classification. Customs duties are calculated over the ‘transaction value’ of the merchandise valued as per Bolivian customs legislation, plus transportation and insurance costs.
Taxes on specific goods for consumption (excise tax)
Specific goods are taxed at the following rates (applicable for year 2021):
|Black cigarettes||BOB 78.02 per 1,000 cigarettes|
|Blond tobacco cigarettes and cigars||BOB 146.55 per 1,000 cigarettes|
|Other cigarettes and tobacco for pipes||50%|
|Diesel vehicles||15% to 80%|
|Other vehicles||0% to 40%|
|Vehicles for transportation of 18 or more persons, vehicles for heavy loads transportation, and health services vehicles||0%|
|Soft drinks (except natural water and fruit juices)||BOB 0.47/litre|
|Energising drinks||BOB 5.25/litre|
|Maize liquor||BOB 0.93/litre|
|Beers with 0.5% or more volumetric degrees||BOB 3.93/litre + 1%|
|Wines||BOB 3.61/litre + 5%|
|Ciders and sparkling wines (except maize liquor)||BOB 3.61/litre + 5%|
|Liquors and creams in general||BOB 3.61/litre + 5%|
|Rum and vodka||BOB 3.61/litre + 10%|
|Other brandies/liquors||BOB 3.61/litre + 10%|
|Whiskey||BOB 15.07/litre + 10%|
Special tax on hydrocarbons and derived products
A tax is charged on the commercialisation of hydrocarbons and their derived products within the local market, regardless of whether they are produced in Bolivia or imported. This tax is updated by the Hydrocarbon National Agency and has a threshold annually updated by the Bolivian Internal Revenue Service (IRS), which currently amounts to BOB 8.05/litre (applicable as of 31 December 2020).
Direct tax on hydrocarbons
A direct tax on hydrocarbons (IDH) is applied on the production of hydrocarbons, measured at the wellhead point, at a rate of 32%. To determine the taxable base for this tax, production of hydrocarbons must be valued taking into account the average sales price and considering the market (internal/external) where such hydrocarbons were sold.
Property tax on real estate and vehicles
Real estate and vehicles are annually subject to municipal government property taxes at progressive rates that range from 0.35% to 1.5% and 1.5% to 5%, respectively. Regarding real estate, property values and tax bands are determined by each municipal government, thus real estate is taxed differently depending on its location.
Transfer of property and real estate are subject to a transfer tax at a rate of 3%. This tax must be determined based on the provisions set forth for the transaction tax (tax on gross income; see the Taxes on corporate income section) and is collected by the municipal government or by the tax authorities, which will depend on where the real estate is located and the nature of the seller.
There are no stamp taxes in Bolivia.
Employers are obligated to withhold and pay RC-IVA (Regimen Complementario al Impuesto al Valor Agregado) on gross salaries paid to employees on a monthly basis at a rate of 13% after labour contributions made to the pension fund administrators and deduction of other concepts established by tax law. Gross salary includes base salary, commission, bonuses, living allowance, and any other compensation in kind/cash granted to the employee.
The Pension Law establishes employer social contribution obligations. Social tax charges for employers are equal to 16.71% of gross salary in general and 18.71% for the mining sector.
Financial Transaction Tax (FTT)
An FTT is levied on bank transactions (deposit or transfer of funds), carried out within the domestic financial system, at a rate of 0.30% for fiscal years (FYs) 2018 through 2023.
Special tax on lottery and gambling games
A specific tax on lottery and gambling games is applied in Bolivia. The tax is also applicable to business promotions that involve a raffle or random activities in providing awards in order to increase sales or attract clients. The tax rate for lottery and gambling games is 30%, whereas the tax rate for business promotions is 10%.