Bolivia

Individual - Other taxes

Last reviewed - 02 July 2020

Social security contributions

Pension funds are administered privately, and only employees contribute toward their retirement pension. The contribution rate is 12.71% calculated on gross salary with a threshold of 60 minimum national salaries (i.e. approximately 18,300 United States dollars [USD]). This payment is registered under the individual account of each employee.

In addition, employees who earn more than 13,000 bolivianos (BOB) are subject to a supportive social contribution determined on a scale system from 1% up to 10% over the gross salary. Social tax charges are determined over the gross salary, including any compensation granted to the employee in-kind/cash.

Note that according to the Pension Fund Law (Law 65), income arising from capital investment made in the country and abroad in the way of interest, dividends, or any kind of income obtained as a result of such investment are subject to a supportive social contribution determine on a scale system from 1% up to 10%. In this regard, it is important to mention that this social security contribution has not yet been collected due to the lack of further regulations.

Consumption taxes

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%).

Property tax on real estate and vehicles

Real estate and vehicles are annually subject to a property tax calculated at different rates based on a scale value determined by the municipal government. See the Other taxes section in the Corporate summary for more information.