TAX INCENTIVES

By Supreme Decree No. 5503 dated December 17, 2025, certain Tax Incentives were established. This regime was regulated through Normative Resolution of the Board of Directors No. 102500000052 of December 24, 2025, issued by the National Tax Service (SIN).

Below are the most relevant aspects of this temporary regime:

NATIONAL PRODUCTION INCENTIVE

  • A temporary tax incentive is established to promote the consumption and production of products “Made in Bolivia”, allowing taxpayers under the Complementary Regime to the Value Added Tax (RC-IVA) to credit, as a payment on account, 20% of the VAT rate contained in purchase invoices for products made in Bolivia.
    Consequently, the benefit is equivalent to 15.6% of the net selling price of such products. This incentive is effective from its publication until December 31, 2027.

ACCELERATED DEPRECIATION

  • A voluntary tax incentive established for the determination of the taxable base of the Corporate Income Tax (IUE), allowing taxpayers, at their discretion, to alternatively apply a method of accelerated depreciation for certain fixed assets, under the following conditions:
    • Applicable to fixed assets acquired between January 1 and December 31, 2026.
    • The useful life years established in the Annex to Article 22 of Supreme Decree No. 24051 are reduced by half.
    • Taxpayers must notify the SIN of its application through a Sworn Statement, indicating the use of this incentive in the notes to the financial statements.
  • Mining and hydrocarbon extractive companies are excluded from this incentive.

EXCEPTIONAL RECOGNITION OF EMPLOYER SOCIAL SECURITY CONTRIBUTIONS AS VAT PAYMENT ON ACCOUNT

  • An exceptional and temporary tax benefit is established, allowing VAT taxpayers to credit 50% of employer social security contributions actually paid as a payment on account of VAT, when the VAT determined results in a balance in favor of the tax authorities.
  • The incentive applies to contributions derived from employment contracts entered into between December 17, 2025 and March 31, 2026, duly registered with the Ministry of Labor, and only in respect of salaries equal to or lower than four (4) National Minimum Wages.
  • The recognized contributions, effective as of January 2026, are:
    • Mandatory Short-Term Social Security: 10%
    • Housing Contribution (Pro-Vivienda): 2%
    • Long-Term Occupational Risk Premium Contribution: 1.71%
  • This benefit is exceptional in nature and will be effective only until December 31, 2026 (including fiscal period December 2026).

VAT INPUT TAX CREDIT OFFSET FOR INDEPENDENT PROFESIONALS

  • Individuals engaged in liberal professions, trades, or other independent activities subject to VAT and RC-IVA may offset the full amount of VAT input tax credit included in purchase invoices corresponding to personal expenses and/or expenses related to the professional activity.
  • The VAT input tax credit may be offset against:
    • VAT output tax
    • Withheld or self-declared RC-IVA
    • As a balance in favor of the taxpayer

ENTREPENEURSHIP TAX SUPPORT SYSTEM

  • The Special Integrated Transition System for Entrepreneurs to the General Regime (SIETE-RG) is established, which consolidates the payment of VAT, the Transactions Tax (IT), and Corporate Income Tax (IUE) into a single tax.
  • To be eligible for SIETE-RG, certain conditions must be met.
  • The single tax payable amounts to 5% of gross sales.
  • Invoices issued under this regime do not generate tax debit or tax credit; however, the amount paid is recognized as a credit on account against RC‑VAT or VAT, as applicable
  • Taxpayers under Special Regimes may voluntarily migrate to the SIETE-RG.
  • Automatic migration to the General Tax Regime shall occur in the following cases:
    • When annual gross sales exceed Bs 250,000; or
    • Upon the completion of three (3) years from the date of registration in the SIETE‑RG.