Bolivia

Bolivia taxes individuals only on their Bolivian-source income, regardless of their nationality/residence. In this regard, income arising from goods/assets located or utilised economically within Bolivian territory and performance of any activity carried out within the country is considered Bolivian-source income. No Bolivian taxes are imposed on foreign-source income earned by individuals.

Personal income tax rates

The personal income tax (Regimen Complementario del Impuesto al Valor Agregado or RC-IVA) rate is 13%.

Employers have the obligation to withhold and pay to the tax authorities the RC-IVA on gross income after deduction of social contributions and other concepts established by tax law.

In case of non-domiciled individuals who receive Bolivian-source labour income paid by non-resident entities (i.e. foreign employer), these non-domiciled individuals are considered direct taxpayers of RC-IVA and must declare and pay the tax on a monthly basis or upon leaving the country, whichever event occurs first.

Local taxes on income

There are no local taxes on personal income in Bolivia.