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 incentives on the import and sale of capital goods

Law 1613 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 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.