Bolivia legal and accounting and tax considerations in 2024

1. The standard corporate tax rate levied on all net profits derived from Bolivia is at a flat rate of 25%. Tax returns are filed yearly and the fiscal year runs January 1^st to December 31^st so taxes must be filed within 120 days after the end of the tax year;
2. Branches pay a corporate tax rate of 25% as well as branch remittance tax at the rate of 12.5%;
3. The standard VAT rate levied on provision of goods and services in Bolivia is at a flat rate of 13%. VAT is not levied on exports;
4. Capital gains tax in Bolivia is levied at the rate of 25%;
5. Withholding tax levied on dividends, royalties and interest payments is at a flat rate of 12.5%. Capital gains derived from transactions on the Bolivian Stock Exchange are tax exempt;
6. Losses can be carried forward for up to three years;
7. Employers must submit to the relevant authorities social security contributions on behalf of their employees at the rate of 10%;
8. Bolivia Rastra Bank determines foreign exchange controls and foreign investors can freely repatriate profits to other countries;
9. Bolivia has signed double tax avoidance treaties with 6 countries including Argentina, France, Germany, Spain, Sweden and the United Kingdom;
10. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
11. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.