Bolivia

Payments made to Bolivian residents

Dividends paid to Bolivian residents, either individuals or corporations, are not taxable.

Payments made by corporations to individuals with respect to the acquisition of goods or provision of services that are not supported with an invoice or fiscal receipt are subject to a WHT of 8% on goods and 16% on services.

Payments to non-residents

Dividend payments, distributions of profits to the head office by Bolivian branches, interest payments, royalty payments, and fees paid for any type of services made to non-residents are subject to a WHT of 12.5%.

Activities considered partially performed within Bolivian territory (e.g. telecommunication services, insurance, transportation, production/distribution of cinematographic films, etc.) by non-residents are subject to a reduced WHT of 2.5%.

Payments to non-domiciled individuals for their activities performed within Bolivian territory are subject to a WHT at a rate of 16%, such rate refers to transaction tax at rate of 3% and personal income tax (Regimen Complementario del Impuesto al Valor Agregado or RC-IVA) at a rate of 13%.

Tax treaties

Bolivia currently has in force double tax treaties (DTTs) with the Andean Community (i.e. Colombia, Ecuador, and Peru), Argentina, France, Germany, Spain, Sweden, and the United Kingdom.

Beneficial WHT rates on dividend distributions are provided by DTT with Spain and Sweden at 10% and 0%, respectively, provided the Spanish or Swedish holding company demonstrates it is the beneficial owner and holds more than a 25% interest in the Bolivian company.