Bolivia Corporate Tax Guide 2026
Bolivia's corporate income tax (Impuesto sobre las Utilidades de las Empresas — IUE) is levied at a flat rate of 25% on taxable profits of resident companies and branches of foreign entities. The tax year is the calendar year. Companies must file annual returns by 30 March of the following year. The IUE applies to worldwide income for resident companies and Bolivia-source income for non-residents with a permanent establishment.
Overview — IUE in Bolivia
The IUE is governed by Law 843 and administered by the Servicio de Impuestos Nacionales (SIN). A company is considered tax resident in Bolivia if it is incorporated under Bolivian law or has its place of effective management in Bolivia. Resident companies are taxed on worldwide income. Non-resident companies with a permanent establishment in Bolivia are taxed on Bolivia-source income only. The standard rate is a flat 25% with no progressive brackets or reduced rates for specific sectors. Companies must obtain a Tax Identification Number (NIT) and register for all applicable taxes. The tax year is the calendar year, and annual returns are due by 30 March.
Standard Corporate Tax Rate — 25%
The IUE rate is a flat 25% of chargeable net profits. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, depreciation (capital allowances), interest costs, and losses carried forward. Capital gains are included in ordinary income and taxed at the standard 25% rate. There is no separate capital gains tax for companies. Dividends received from other Bolivian companies may be exempt from IUE under certain conditions to avoid economic double taxation. Withholding tax on dividends paid to non-residents is separate from IUE.
Branches of Foreign Companies
Foreign companies operating through a branch in Bolivia are subject to IUE at 25% on Bolivia-source profits, the same rate as resident companies. Branch profits remitted to the head office are subject to an additional withholding tax on profit remittances (remittance tax). The combined rate for repatriated profits is effectively higher due to this additional tax. The branch must register with SIN, maintain separate accounting records for its Bolivian operations, and file annual tax returns. Transfer pricing rules apply to transactions between the branch and its head office or related entities.
Capital Allowances (Depreciation)
Bolivia allows depreciation deductions for tax purposes using the straight-line method. Standard rates include:
- Buildings & constructions — 2% per annum
- Plant & machinery — 10% per annum
- Office furniture & equipment — 10% per annum
- Motor vehicles — 20% per annum
- Computers & IT equipment — 25% per annum
Depreciation is calculated on the historical cost of assets. Accelerated depreciation may be available for certain sectors with prior SIN approval. Intangible assets (goodwill, patents, trademarks) are amortised over their useful life, typically 5–10 years.
Loss Carry-Forward & Thin Capitalisation
Tax losses may be carried forward for up to 5 years to offset against future taxable profits. Losses cannot be carried back. The carry-forward is available to both resident companies and branches. Bolivia also has thin capitalisation rules that limit interest deductions on related-party debt. The maximum allowable debt-to-equity ratio is 3:1. Interest on debt exceeding this ratio is disallowed as a deduction. Transfer pricing rules require arm's length pricing for transactions with related parties, following OECD guidelines adapted to Bolivian law. Documentation requirements apply for transactions exceeding specified thresholds.
FAQs
What is the penalty for late filing of IUE returns?
Late filing attracts a penalty of up to 50% of the tax due, plus interest calculated at the official rate. Additional fines apply for failure to maintain proper records or for tax evasion, which can be up to 200% of the evaded tax.
Can foreign companies claim treaty relief?
Yes, Bolivia has limited double tax treaties primarily within the Andean Community (Decision 578) and Mercosur. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to residents of treaty countries.
Is there a minimum tax in Bolivia?
Bolivia imposes a minimum tax known as the Impuesto a las Transacciones Financieras (ITF) on financial transactions, but there is no minimum corporate income tax. Loss-making companies pay no IUE, provided they can justify the losses to SIN.
Disclaimer
This guide provides general information about Bolivian corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Bolivian tax advisor or the Servicio de Impuestos Nacionales for advice specific to your situation. InvestmentKit does not provide tax advice.