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.
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.
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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 obligations | Regular date for declaration | New date for declaration |
| Value Added Tax (VAT) | February-May 2020 | July 2020 |
| Transfer Tax | February-May 2020 | July 2020 |
| Income Tax Fiscal year 2019 | 29 April 2020 For taxpayers with fiscal year ending on 31 December 2019 | 29 May 2020 for Great and Main Contributors (GRACO and PRICO).31 July 2020 for taxpayers catalogued as RESTO. |
| Sales and Purchase Ledger reports | February-May 2020 | July 2020 |
| Transfer pricing | 29 April, 2020For taxpayers with fiscal year ending on 31 December 2019 | July 2020 |
| Annual Financial Statements and Annual Report 2019 | 29 April, 2020For taxpayers with fiscal year ending on 31 December 2019 | July 2020 |
| Independent Professionals | 29 April, 2020 | 29 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
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.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
