Bolivia

Corporate - Significant developments

Last reviewed - 01 August 2023

2022 General State Budget

In December 2022, the Bolivian government passed Law 1493, which approves the government budget for the fiscal year 2023. This norm 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 the related interest. In particular, Law 1493 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.

Tax incentives on the import and sale of capital goods

On 31 October 2021, Law 1391 was approved with the purpose to establish tax incentives for the economic reactivation and promotion of the import substitution policy, for which it is established the following:

  • Value-added tax (VAT) exemption on the importation of capital goods, industrial plants, and high-capacity cargo vehicles in volume and tonnage for the agricultural and industrial sectors, including refrigerated vehicles, and heavy machinery for the construction sector and mining.
  • Zero VAT rate for sales within the domestic market of capital goods, industrial plants, and high-capacity cargo vehicles in volume and tonnage for the agricultural and industrial sectors, including refrigerated vehicles, and heavy machinery for the construction and mining sector.

These tax incentives had a period of one year computable from the fifth business day following the publication of the regulatory Supreme Decree, which was published on 1 September 2021. Later, Law 1462, enacted on 9 September 2022, extended the above regime until 29 September 2023.