Bolivia Investment Income Guide 2026

Overview — Investment Income Taxation

Bolivia taxes investment income through a combination of final withholding taxes at source and inclusion in annual taxable income. Withholding taxes are generally final for resident individuals, meaning no further tax reporting is required. For companies, withheld tax is creditable against IUE. For non-residents, withholding tax rates may be reduced under applicable double tax treaties (limited to Andean Community and Mercosur agreements). The Bolivian investment landscape includes bank deposits, government bonds, corporate bonds, listed shares, and mutual funds, each with distinct tax treatments.

Dividends — Withholding Tax

Dividends paid by Bolivian-resident companies are subject to withholding tax. The standard rate is 12.5% for resident individuals (final tax). For resident companies, dividends from other Bolivian companies may be exempt from IUE to avoid economic double taxation, but the withholding tax still applies. For non-residents, the dividend withholding tax rate is generally 12.5%, which may be reduced under Andean Community rules (Decision 578) to 10% or less depending on the investor's country of residence. The company paying the dividend must withhold the tax and remit it to SIN within the prescribed period.

Interest Income — Withholding Tax

Interest income is taxed at different rates depending on the source and the recipient:

• Bank deposit interest — 12.5% final withholding tax for resident individuals
• Government bonds — 12.5% withholding tax on interest payments
• Corporate bonds — 12.5% withholding tax on interest
• Interest from foreign sources — included in taxable income (13% RC-IVA or 25% IUE)

The 12.5% withholding rate is consistent across most domestic fixed-income instruments. For non-residents, the rate is generally 12.5% as well, subject to treaty reduction. Interest on certain development bonds and infrastructure projects may be exempt from withholding tax to encourage investment.

Capital Gains on Investments

As noted in the capital gains guide, gains from the disposal of investments are treated as ordinary income. For individuals, gains on the sale of listed securities on the Bolivian Stock Exchange may benefit from reduced treatment. Gains from the sale of unlisted shares are fully taxable under RC-IVA (13%) for individuals or IUE (25%) for companies. The cost basis is the acquisition cost, and holding period does not affect the tax rate. Investment losses may be offset against investment gains within the same tax year.

Mutual Funds & Collective Investment Schemes

Distributions from mutual funds and collective investment schemes in Bolivia are generally subject to withholding tax at the applicable rate of 12.5%. Capital gains realised by the fund are taxed within the fund, and distributions to investors carry a credit for tax already paid. The fund itself is subject to IUE on its investment income at 25%, with the withholding tax on distributions serving as a credit mechanism. For individual investors, the withholding tax on fund distributions is generally a final tax. The Autoridad de Supervisión del Sistema Financiero (ASFI) regulates all collective investment schemes in Bolivia.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the 12.5% withholding tax on dividends is final, so no further reporting is needed. Non-residents and corporate shareholders should report and claim treaty relief where applicable.

Are foreign investment income and capital gains taxable in Bolivia?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and capital gains should be declared in the annual tax return. Foreign tax credits may be available under applicable treaties.

Can I claim a refund if withholding tax exceeds my liability?

Where the withholding tax deducted is final, no refund is available. For non-final withholding (e.g., corporate shareholders), any excess may be credited against other tax liabilities or refunded after review by SIN.

Disclaimer

This guide provides general information about Bolivian investment income taxation 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.