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Bolivia
Corporate - Tax credits and incentives
Last reviewed - 17 January 2024Foreign tax credit
Bolivian legislation does not include provisions regarding recognition of foreign tax credits.
Investment incentives
No incentives are granted in Bolivia for domestic or foreign investment.
Export incentives
Export activities benefit from reimbursement of VAT and customs duties paid in the process of producing goods to be exported (with some limitations for oil/gas companies).
Other incentives
Foreign exchange transactions are legal in Bolivia, and a system of free-floating exchange rates exists, although, in practice, the US dollar has had a fixed exchange rate for approximately the last ten years.
Tourist and lodging services by hotels to foreign tourists without a residence or address in the country are exempt from VAT. In addition, importation of books, magazines, and newspapers are exempted from importation taxes (i.e. VAT), and the sale of produced or imported books are taxed at the zero VAT rate.
International transportation by highway is also exempt from VAT (or subject to 0% VAT rate).
Interest income from public debt raised 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, is exempted from CIT.
Regional manufacturing tax incentives
New investments in manufacturing in the states of Oruro and Potosi are entitled to the following tax exemptions:
| Exemption | Conditions of exemption |
| Import tariffs and VAT on imported machinery | Machinery imported exclusively for the new industry until start-up of operations. |
| Import tariffs on imported inputs | They do not replace domestic inputs of the same kind and are destined to a transformation process. The exemption is granted for the first ten years of operation. |
| Transaction tax | For ten years from the start-up of operations. |
| CIT | For ten years from the start-up of operations if the amount exempt is reinvested in fixed assets in the following fiscal year. |
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