Company incorporations and registrations in Bolivia are done via FUNDEMPRESA.
The Ministry of Productive Development and Plural Economy, the Audit Authority and Social Control – FUNDAEMPRESA have worked together to provide business investors with practical guidelines to register and incorporate companies in Bolivia with the Registry of Commerce.
Please click here to view these guidelines.
Corporate tax rates
Compared to other countries, Bolivia’s tax rates are competitive. Resident companies and foreign companies with permanent establishments in Bolivia are subject to income tax on the Bolivian-sourced income at 25%. This percentage of tax is determined on the earnings before taxes obtained by the company and is declared on an annual basis.
- Corporate Income Tax Rate: 25%
- Capital Gains Tax Rate: 25%
- Branch Tax Rate: 25%
- Withholding Tax Rate
- Dividends: 12.5%
- Interest: 12.5%
- Royalties: 12.5%
- Professional Services: 12.5%
- Branch Remittance Tax: 12.5%
- Value-Added Tax: 13%
Other taxes on Corporations
- Capital duty – No
- Payroll Tax – No
- Real property tax – A municipal tax is levied annually on the cadastral value of real property. The rates, which are progressive, are set by the local government.
- Social Security – Both the employer and the employee are required to contribute to the social security system. Contributions are calculated using the employee’s income as a basis. The employer must contribute 14.71% (16.71%) for mining companies) and the employee contribution varies between 12.71% and 28.71%. The employer also must contribute 2% to the National housing Fund.
- Stamp duty – No
- Transfer Tax – The owner of immovable property is required to pay a transfer at a rate of 3% in consideration for the property sold or the officially appraised value.
- Other – companies engaged in mining activities are subject to a maximum mining royalty of 7%. The rate is variable and depends on the type of mineral. Companies engaged in the exploitation of hydrocarbons are subject to a combined 18% royalty and 32% tax.