This Supreme Decree dated December 17, 2025, declares a State of Economic, Financial, Energy and Social Emergency throughout the entire territory of the Plurinational State of Bolivia, and provides for the adoption of exceptional, temporary and immediately applicable measures.
Below we outline the main provisions of the Decree:
1. Declaration of National Economic Emergency
An Economic, Financial, Energy and Social Emergency is declared in response to the inflationary process, the shortage of U.S. Dollars and fuels, empowering the Executive Branch, in coordination with the Central Bank of Bolivia, to execute and implement the necessary actions.
2. Macro-Financial Stabilization Measures
2.1. Attributions of the Central Bank of Bolivia
The Central Bank of Bolivia (BCB) is exceptionally and temporarily authorized to manage and enter into liquidity financing lines, currency swaps, issue external financial instruments, carry out foreign exchange hedging operations, and receive deposits, guarantees or collateral from the General Treasury of the Nation.
2.2. Extraordinary Regime for the Promotion and Protection of Investments
An extraordinary regime applicable to domestic and foreign investments is established, aimed at guaranteeing legal certainty, economic regulatory predictability, and non-discriminatory treatment.
The Decree defines the scope of application and guiding principles of this regime; establishes a period of enhanced legal and tax stability; and defines priority strategic investments in the following sectors: formal mining and metallurgy; hydrocarbons and energy; electricity generation and renewable energies; agribusiness and food; logistics infrastructure and transport; and export-oriented manufacturing.
Strategic investments may be formalized through Investment Contracts, approved by Supreme Decree.
An expedited approval procedure (FAST TRACK) is established for the technical approval of strategic investment projects under this Regime, creating for this purpose the Single Window for Strategic Investments (VUIE).
Investment Contracts may provide for dispute resolution mechanisms through conciliation and arbitration, in accordance with the Conciliation and Arbitration Law.
2.3. Extraordinary Regime for Capital Regularization and Repatriation
An extraordinary, temporary and voluntary regime for the Regularization and Repatriation of Capital is created, with the purpose of expanding the base of assets formally incorporated into the national economic and financial system; strengthening domestic liquidity and international reserves; encouraging productive investment and capital reinvestment; offering incentives for financial formalization; and contributing to macroeconomic and financial stability. It is expressly clarified that this regime does not constitute a general amnesty for criminal offenses.
The Decree establishes the legal effects of regularization, tax incentives, productive destination of resources, confidentiality, and information protection.
3. Economic Reactivation and Productive Deregulation
3.1. Tax and Customs Regime
The purpose of this regime is to establish tax incentives for economic reactivation and to promote the creation of new enterprises through a tax system that supports entrepreneurship.
Measures include incentives for domestic production; accelerated depreciation of assets acquired during fiscal year 2026; provisions for uncollectible accounts; exceptional recognition of employer social security contributions as VAT advance payments; deduction of contributions and VAT tax credit relief for independent professionals; and facilities for the payment of customs duties.
3.2. Entrepreneurship Support Tax System
The Special Integrated Transition System for Entrepreneurs to the General Regime (SIETE-RG) is established, consolidating under a mono-tribute modality the payment of Value Added Tax (VAT), Transactions Tax (IT), and Corporate Income Tax (IUE), applicable to transitioning entrepreneurs (5% of gross sales).
The Decree sets forth the conditions for participation in this System, the obligation to issue invoices, accumulation of tax credits, and automatic migration to the general tax regime.
3.3. Elimination of Prior Authorizations – SENAVEX
The requirement for Prior Import Authorization issued by the National Export Verification Service (SENAVEX) is eliminated, as well as the requirement for prior import authorization for certain products, which will now be subject solely to the provisions of the general customs regime and applicable technical regulations.
4. Liberalization and Promotion of Agricultural and Agro-Industrial Exports
4.1. Agricultural and Agro-Industrial Exports
The requirement of the Internal Supply and Fair Price Certificate as a prerequisite for export clearance before the National Customs Authority is eliminated, fully restoring the principle of freedom of export established under current regulations (including exports of corn, sorghum, sugar, and meat).
5. Financial Protection, Credit Deferral, and Extraordinary Tax Portfolio Clean-Up
5.1. Financial Protection Regime
Conditions are established for the application of automatic credit deferral under Law No. 1670.
Financial intermediation entities and financial leasing entities, for a period of six (6) months and at the express request of borrowers, may defer installment payments on loans granted for social housing and productive sector loans granted to micro and small economic units, setting forth operational aspects and other applicable conditions.
5.2. Extraordinary Tax Portfolio Clean-Up and Ex Officio Statute of Limitations
On an exceptional, extraordinary, and one-time basis, Tax Authorities are empowered to declare ex officio the statute of limitations for interest and administrative penalties related to tax obligations whose taxable events occurred up to and including October 31, 2025, in accordance with Article 59 of the Bolivian Tax Code and related regulations.
The Decree also establishes rules regarding adjustments, payments made prior to the entry into force of the regulation, and exclusions.
6. Price Stabilization, Fuels and Energy
A new pricing regime is established for Vehicular Natural Gas and petroleum-derived products (WITH THE EXCEPTION OF LIQUEFIED PETROLEUM GAS – LPG) destined for the domestic market, with a transitional period of six (6) months, as well as adjustment methodologies to be approved by regulation.
The new pricing regime includes the following products: Vehicular Natural Gas (VNG), Regular Gasoline, Diesel Oil, Premium Gasoline, Aviation Gasoline, Kerosene, Jet Fuel, and Gas Oil.
The financing regime for electricity generation with Gas Oil in Isolated Systems is modified.
On a temporary basis, diesel is removed from the List of Controlled Substances and the requirement for Prior Authorization (PA) before the General Directorate of Controlled Substances (DGSC) is suspended.
7. Priority Social Measures for the Protection of Family Income
7.1. “Juancito Pinto” Bonus – Fiscal Year 2026
The Decree sets the amount of the Juancito Pinto Bonus at Bs300 (Three Hundred Bolivianos) per student, and establishes the beneficiaries and conditions for its payment and financing.
7.2. Increase of the Dignity Pension and Creation of the Extraordinary Protection and Equity Program (PEPE)
The Dignity Pension is increased by Bs150 (Une Hundred and Fifty Bolivianos), setting it at Bs500 (Five Hundred Bolivianos).
PEPE is an extraordinary cash transfer program granted for a period of up to 12 months to the most vulnerable families, establishing beneficiaries, amounts, duration, access formalities, payment modalities, and sources of financing.
7.3. Wage Policy and National Minimum Wage (NMW)
As of January 2, 2026, the National Minimum Wage is increased to Bs3.300 (Three Thousand Three Hundred Bolivianos).
The Decree establishes criteria for rationalizing expenditures in the Public Sector, freezing salary increases in this sector for fiscal year 2026, with certain exceptions.
It also prohibits the granting of domestic loans by the Central Bank of Bolivia (BCB) to public enterprises.
8. Efficient Government Control and Expedited Compliance Audits
An Exceptional Regime of Efficient Government Control is established, incorporating Expedited Compliance Audits, defined as the accumulation and technical and objective evaluation of sufficient evidence to issue a swift, independent, and timely opinion on the use, destination, and collective benefit of public resources, conducted within an extraordinarily reduced timeframe and using simplified methodologies.
The Decree establishes the purpose of Expedited Audits and identifies the entities with authority to conduct them.
Supreme Decree No. 5503 is in force as of its publication, in accordance with the timeframes and transitional periods established therein.
Contacts and Further Information
For further information regarding the content of Supreme Decree No. 5503, as well as to identify the applicable regulatory implications for each sector or activity, our team is available to:
- Address specific inquiries regarding the application of the Decree;
- Provide support in reviewing regulatory impacts on existing operations, contracts, and structures; and
- Assist with legal adaptation to the provisions and regimes established by the regulation.
To schedule a meeting or submit inquiries, please contact our legal team.
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