Bolivia

2024 General State Budget

In December 2023, Law 1546 was enacted to approve the government budget for the fiscal year 2024, which authorises the Ministry of Economy to raise public debt in external capital markets for an amount up to 2 billion United States dollars (USD) with a tax exemption on related interest. In particular, Law 1546 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.

Furthermore, Law 1546 establishes value-added tax (VAT) incentives in connection with the import and sales of capital goods and industrial plants within the domestic market (i.e. exemption of payment of VAT for importations and application of a zero-rate VAT in respect of local sales).

Finally, Law 1546 extends the application of the Financial Transaction Tax (FTT) until 31 December 2028. 

Tax incentives on the import and sale of capital goods

Law 1546 establishes tax incentives for the economic reactivation and promotion of the importation substitution policy, for which it is established the following:

• VAT exemption on the importation of capital goods and industrial plants for the agricultural and industrial sectors.
• Zero-rate VAT for sales within the domestic market of capital goods and industrial plants for the agricultural, construction, mining, and industrial sectors.

These tax incentives have a period of one year commencing from 1 January 2024 until 31 December 2024.