Law 1733 – TAX RELIEF PROGRAM

1. TAX RELIEF PROGRAM

The purpose of this Law is to establish an exceptional tax relief period applicable to taxpayers under the jurisdiction of the National Tax Service (Servicio de Impuestos Nacionales) and the National Customs Authority (Aduana Nacional), including those currently subject to tax audits, administrative appeals, tax enforcement proceedings, or compulsory collection actions.

1.1 Tax Debt Forgiveness Program

Applicable to: Tax liabilities where the accumulated omitted tax amount is less than BOB 10 million for fiscal years prior to 2018, and tax liabilities corresponding to fiscal year 2020, regardless of the amount involved.

Effect: A 100% waiver of the tax debt (including the omitted tax and all ancillary charges), as well as fines arising from tax or customs offenses and violations.

1.2 Tax Regularization Program

Applicable to: Tax liabilities accrued between January 1, 2018, and December 31, 2025 (excluding fiscal year 2020), and tax liabilities corresponding to periods prior to 2018 where the accumulated omitted tax exceeds BOB 10 million.

The Law provides two alternatives for taxpayers to regularize their tax obligations:

Lump-Sum Payment

Payment of the omitted tax plus 50% of the inflation adjustment (maintenance of value).

Effect: 100% waiver of penalties and interest, as well as a 50% reduction of the inflation adjustment.

Installment Payment Plan (up to 36 monthly installments)

Payment of the omitted tax updated as of the publication date of the Law.

Effect: 100% waiver of penalties and interest.

2. REGULATORY AMENDMENTS

2.1 Tax Code

Articles 59 and 60 of the Tax Code have been amended to establish that the Tax Administration’s authority to audit, assess taxes, impose penalties, and enforce tax debts is subject to a four-year statute of limitations. The authority to enforce imposed penalties is subject to a two-year statute of limitations. An additional two-year extension applies where the taxpayer was either not registered or incorrectly registered in the relevant registries.

Effect: In general terms, the amendments reduce the applicable limitation periods and narrow the circumstances under which such periods may be extended.

2.2 Tax Law (Law No. 843 – Tax Reform Law)

Article 5, concerning Value Added Tax (VAT), has been amended to clarify that the net sales price (taxable base) corresponds to the actual value of the product, good, or service prior to the application of taxes.

The amendment further clarifies that VAT is not part of the net sales price and must be separately disclosed on the corresponding invoice.

2.3 Law No. 060 on Lottery and Gambling Activities

The amendments and repeals introduced by Law No. 1733 establish that promotional marketing campaigns are no longer subject to the supervision and oversight of the Gaming Control Authority (Autoridad de Fiscalización del Juego – AJ).

Likewise, promotional campaigns will no longer constitute a taxable event for purposes of the Gaming Tax (Impuesto al Juego – IJ).

Contact Information and Further Assistance

Our team is available to provide additional information regarding the provisions of Law No. 1733 and to assess the specific implications and requirements applicable to each case.

To schedule a meeting or submit inquiries, please contact our legal team at: abogados@baqsn.bo