1. Can you provide an overview of the current tax laws and regulations in Bolivia?
Bolivia operates a territorial tax system based on the principle of source taxing income generated by individuals and/or legal entities arising from goods and assets located or used economically within its territory and from any activity carried out in the country, regardless of the nationality and/or residence of the parties involved or where the contracts were entered into.
A corporate income tax taxes entities incorporated or carrying businesses in its territory, including subsidiaries/branches of foreign entities. No personal income tax exists as such for individuals; thus, they are subject to a complementary tax on the value added tax on any income obtained as employees and/or as direct taxpayers.
The tax legislation has not experienced significant changes and has not evolved since its last major reform in 1986. For that matter, an integral reform is essential not only to amend existing flaws and inconsistencies in the norms, but to adapt them to new realities of industrialisation, technology, digitalisation and entrepreneurship. Continue reading “Sponsored Q&A: Dentons (Bolivia)”