Individual - Significant developments

Last reviewed - 17 January 2024

Bolivian wealth tax

On 28 December 2020, the Executive approved a law on a wealth tax (‘Impuesto a las Grandes Fortunas’ in Spanish) on resident and non-resident individuals who own a net wealth exceeding BOB 30 million as of 31 December of each year, with progressive rates between 1.4% and 2.4%. This tax has entered into force from 2020 onwards.

The law introduces relevant changes to the Bolivian tax system, which traditionally has followed the source or territoriality principle. In this sense, the law considers both assets located in Bolivia and abroad as taxable wealth in case of resident individuals.

This law also introduces a definition of tax residence for wealth tax purposes.

Value-added tax (VAT) reimbursement regime

Law 1355 approved a VAT reimbursement regime for individuals with average monthly income up to BOB 9,000. The amount to be reimbursed is 5% of purchase goods included in fiscal invoices. In order to access this regime, individuals must register before the tax authorities.