Changes to Bolivia’s Tax System During COVID-19 Response

Understand key changes to Bolivia’s tax system during the government’s response to COVID-19. Importantly, deadlines for filing certain key corporate compliance documents have been deferred.

Person researching changes to Bolivia's tax system
Temporary measures aim to support businesses facing challenges with cash flows or having problems reporting their monthly and annual obligations

In order to confront the consequences of the government’s response to the COVID-19 outbreak, these temporary measures aim to support companies, small businesses and individuals facing difficult times with their cash flows or having problems reporting their monthly and annual obligations at the country’s Tax Office (Servicio de Impuestos Nacionales).

Find out these new deadlines and how your business may be impacted by these measures, and seek expert local accounting guidance to get support for your business during this time.

Deadlines deferred in Bolivia’s tax system

The government has announced a number of changes to Bolivia’s tax system to help the taxpayers affected by quarantine regulations in the country.

Key relevant changes for businesses to take note revolve around tax declarations. The government has set the following deferred deadlines for tax declarations in Bolivia:

Taxes and other obligationsRegular date for declarationNew date for declaration
Value Added Tax (VAT)February-May 2020July 2020
Transfer TaxFebruary-May 2020July 2020
Income Tax Fiscal year 201929 April 2020 For taxpayers with fiscal year ending on 31 December 201929 May 2020  for Great and Main Contributors (GRACO and PRICO).31 July 2020 for taxpayers catalogued as RESTO.
Sales and Purchase Ledger reportsFebruary-May 2020July 2020
Transfer pricing29 April, 2020For taxpayers with fiscal year ending on 31 December 2019July 2020
Annual Financial Statements and Annual Report 201929 April, 2020For taxpayers with fiscal year ending on 31 December 2019July 2020
Independent Professionals29 April, 202029 May, 2020

Regulatory changes to Bolivia’s tax system also include extended deadlines for the physical presentation of Annual Financial Statements, Annual Report, Complementary Tax Information and Transfer Pricing Information until July 2020. 

Facilities for Income Tax in fiscal year 2019

Person walking in a building in Bolivia
The government established that Bolivia’s tax system will defer Annual Income Tax 2019 payments until 31 July 2020

The government established that Bolivia’s tax system will defer Annual Income Tax 2019 payments until 31 July 2020 and potentially ask for a payment plan with any interests or value maintenance. 

Payment facilities for previous periods due by May 2020 have been rescheduled until 31 July 2020. 

These kinds of measures aim to help companies reinitiate their commercial activities and evaluate the best option to pay their taxes in the next three months.

Donations to health centers are tax-deductible 

All donations made in cash to public or private health centers until 31 December 2020, duly authorized by the Ministry of Health (Ministerio de Salud) that provide treatment, control care, diagnosis or prevention for COVID-19, will be deductible for Income Tax for the 2020 fiscal year. Some conditions apply to this benefit.

Contact us for expert support navigating Bolivia’s tax system

Regulations are changing quickly as the situation develops and the government must counter the spread of COVID-19. Bolivia’s tax system has undergone some temporary regulatory reforms to support businesses in meeting their deadlines for tax declarations.

It is important that foreign businesses operating in Bolivia seek expert local accounting and legal support to navigate this turbulent time and understand changes to their corporate compliance obligations.

At Biz Latin Hub, our accounting and legal team are keeping up to date with all regulations imposed by the government in response to COVID-19 and opportunities for businesses to seek support.

For more information about how we can help, contact us today to get started.

Learn more about our team and expert authors.

Infographic: Biz Latin Hub legal and accounting services in Bolivia's tax system for business

Receive the latest news and advice about expanding your business globally.


Subscribe to our newsletter to receive the latest business news and advice about entity formation, legal entity compliance, accounting, back office and fiscal requirements.

  • This field is for validation purposes and should be left unchanged.

Marketing permission: By submitting this form, I give my consent for Biz Latin Hub to be in contact with me via email using the information that I have provided in this form and for the purpose of providing me updates about doing business, entity formation, legal entity compliance, accounting, back office services, PEO and/or for marketing purposes.

What to expect: If you wish to withdraw your consent and stop hearing from us, please simply click the unsubscribe link at the bottom of any email that we send or contact us at [email protected]. We value and respect your personal data and will do the utmost to protect it. By submitting this form, you agree that we may process and use your information in accordance with the stated terms and conditions in our privacy policy.

Pin It on Pinterest

Share This

Share This

Share this post with a friend or colleague!