153 in Bolivia can be paid through Forms 613 and 614. The respective tax should be paid within three days following each month or before the individual leaves Bolivia, whichever is earlier.
• Income from delegations or representations from other jurisdictions for cultural events is exempt from RC-IVA, provided that they are sponsored or accredited by the competent entity at the central level of the jurisdiction or an autonomous territorial entity.
Income subject to tax
Employment income In general, taxable income includes all wages, salaries, prizes, bonuses, gratuities, compensations and allowances in cash or in kind. It also includes fees for directors and trustees and salaries for owners and partners.
The following items are not included in taxable income:
• Salaries, fees or allowances received by diplomatic personnel, official personnel of diplomatic missions accredited in Bolivia and foreign employees employed by international organizations, foreign governments or foreign international organizations, as a direct reason of his or her position
• Christmas bonuses (the first one is mandatory, and the second one is mandatory only if the annual growth of the country is higher than 4.5%)
• Social benefits resulting from indemnities and evictions, in accordance with existing legal rules
• Pre-family, wedding, birth, lactation, family and burial allowances received according to the Social Security Code
• Retirement and pension income, sick allowances, and professional risk allowances
• Life pensions given to persons who were members of the army in any war or life pensions given to members of the army who were injured in peacetime
• Per diem and representation payments, evidenced by local or foreign invoices if they are company-related expenses
Investment income. Dividends paid to Bolivian residents are not subject to RC-IVA. Residents are taxed on interest and royalties received.
Nonresidents are subject to a 12.5% withholding of corporate income tax on dividends, interest and royalties.
Self-employment and business income. Self-employed persons are subject to the following taxes:
• Value-added tax (VAT) at a rate of 13%. This tax is paid on a monthly basis.
• Transactions tax at a rate of 3% on each service rendered. This tax is paid on a monthly basis.
• RC-IVA at a rate of 13%. The taxable base is the income, exclusive of VAT. This tax is paid on a quarterly basis, and the following credits may be claimed with respect to the tax:
13% of two minimum national salaries per month (that is, 13% of six minimum national salaries per quarter). The current minimum salary is BOB2,362 (USD339).
The VAT generated by personal purchases.
Directors’ fees. Directors’ fees not supported by a local fiscal invoice are taxed in the same manner as other personal income.
Totalization agreements. Bolivia has signed the Ibero-American Multilateral Agreement on Social Security. Countries that have effectively implemented this agreement are Argentina, Bolivia, Brazil, Chile, Ecuador, El Salvador, Spain, Paraguay, Peru, Portugal and Uruguay.
Expatriates can request the transfer of their contributions to other countries after they leave Bolivia. However, transfer procedures are not currently available.
D. Tax filing and payment procedures
Tax must be paid monthly when it is paid by a withholding agent and quarterly when it is paid directly by a taxpayer. The tax must be paid at the same time the tax return form is filed. The tax return form must be filed between the 13th and 22nd day of the month following the end of the reporting period. The due date is determined by the last digit of the Tax Identification Number (Número de Identificación Tributaria, or NIT).
E. Double tax relief and tax treaties
Bolivia has signed tax treaties with Argentina, France, Germany, Spain, Sweden and the United Kingdom. It has also signed the Andean Pact, which includes a tax treaty with Colombia, Ecuador and Peru.
F. Migration regime
In May 2013, Act No. 370, which describes the new migration regime, was issued. This law provides requirements for entry into Bolivia. It restricts the entry of undocumented foreigners as well as foreigners who have a criminal background or are not economically solvent. The regulatory Supreme Decree No. 1923 of March 2014 includes the visas described below.
G. Temporary visas
Tourist visas. Tourist visas are valid for 30 days and can be renewed for two more periods of 30 days each (that is, 90 days per year). Tourists can obtain these visas in their home jurisdictions if a Bolivian consulate is located there and renew them at the Bolivian immigration office. Foreigners from the jurisdictions included in Group I do not need a tourist visa to enter Bolivia but must present their passport instead.
Specific purpose visas – transitory work. Visas for specific purpose – transitory work are valid for 30, 90 or 180 days depending on the time of the activity to be carried out in Bolivia.
Temporary visas. Temporary visas for residence, work, family, study or health visas can be obtained for one, two or three years and are renewable.
Definitive visas. Definitive visas for work or family can be obtained in Bolivia by foreigners who have resided in Bolivia for two or three years, as applicable.
Cancellation of visas. The visa is canceled if the expatriate, without the express authorization of the migratory authority, exceeds