Bolivia - Civil Law (Napoleonic)
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Bolivia taxes

Do you want to set up a company in Bolivia? This article explains the tax laws in Bolivia for a LLC which is the most common company structure in Bolivia.

Bolivia has a territorial tax system. This means that income accrued offshore, from our research, and your results may vary, is not subject to taxation. Bolivia may have exclusions and other available benefits to transfer in income from outside the country. The standard corporate income tax rate is 25%. This ranks Bolivia as 101st overall in terms of corp. taxation rate internationally.

The VAT rate in Bolivia is 13.00%, that ranks Bolivia as 74th overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 14.71% to the equivalent of a social security fund and an employee will contribute 28.71%. The overall complexity of the tax system is high. This is measured by average time to comply with a country's labor tax requirements is as it is 507hours. Contributing to this is the number of yearly labor tax payments, which is 1 in BO.

There are not thin capitalization laws enacted. This refers to any type of laws on given company with respect to debt-to-asset ratios. Dividends received from a resident or foreign entity are not subject to taxation. A dividend is payments of an earnings of the business, established by the board, to a particular class of shareholders. Dividends can be either cash payments, shares of stock, or other property. Capital Gains are usually included in taxable income and taxed at the CIT standard rate. Except those from the sales of listed securities in a recognized stock exchange, which are exempted. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 12.5%. Which means that the relevant tax authorities expects legal entities to withhold 12.5% of money remitted abroad on interest payments. The dividends withholding tax rate is 12.5%. Which means that the tax authorities expects companies to automatically withhold 12.5% of dividend payments to non-residents. The royalties withholding tax rate is 12.5%. Which means that the tax authorities expects legal entities to automatically withhold 12.5% of royalty payments remitted abroad.
There is no known tax on wealth in Bolivia. There are inheritance, transfer and real property taxes in Bolivia. There are not many widely used R&D initiatives that provide tax incentives here.

The above is not tax or legal advice for your company's circumstances. We are able to reference you to an accountant in Bolivia who can give you the proper advice and help you need. Want to work together? Click the free consultation button above.

It takes approximately 110 hours to file and prepare documents for a Bolivia Civil Law (Napoleonic).
The corporate tax is approximately 25% which is 103 in the world.

Owners of a company in Bolivia are not allowed to carry back a loss and may be allowed to carry forward a loss for 3 years.

The vat rate in Bolivia is 13% which ranks 72 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
7Tax treaties
0%Offshore Tax
25%Corp rate
-Loss carryback years
110Corporate time
13%VAT rate
25%Capital gains
NoAEOI planned

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We can help you form a company in Bolivia. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Bolivia, which is required by law.

Bolivia Tax Treaties

CountryTypeDate signed
DTC 2004-05-04
DTC 1994-01-14
DTC 1994-12-15
United Kingdom
DTC 1994-11-03
DTC 1976-10-30
DTC 1997-06-30
DTC 1992-09-30

Country Info

National Flag of
Wuliwya Suyu (aym)
Tetã Volívia (grn)
Buliwya Mamallaqta (que)
Estado Plurinacional de Bolivia (spa)
Area Code
South America
Native Languages