Taxes & Law
Taxes, company forms, banks and FX — overview, not advice.
Updated: November 2026
Tax system – overview
- IVA: value-added tax, standard rate 13% (often shown “included” in the price; effective burden can feel higher — check SIN forms)
- IT (Impuesto a las Transacciones): 3% on gross receipts (monthly)
- IUE (Impuesto sobre las Utilidades de las Empresas): 25% on taxable profit (annual)
- RC-IVA: 13% among other things on certain income (wages, rents, fees) — depends on regime and deductions
- Authority: Servicio de Impuestos Nacionales (SIN) — impuestos.gob.bo
Bolivia taxes on a territoriality principle: basically Bolivian-source income. Foreign income can be treated differently by case — an accountant and current SIN rules are required; no DIY tax planning.
Key tax rates (research status Nov 2026)
| Tax | approx. rate | Note |
|---|---|---|
| IVA | 13 % | Goods/services; exceptions/special regimes possible |
| IT | 3 % | on transactions / gross; watch interaction with IUE |
| IUE | 25 % | Corporate profits; annual return |
| RC-IVA | 13 % | among others employment / certain income |
Company forms
| Form | Brief profile |
|---|---|
| Empresa unipersonal | Sole proprietorship — simple entry, personal liability |
| SRL (Sociedad de Responsabilidad Limitada) | LLC-like, quotas, common for SMEs |
| SA (Sociedad Anónima) | Corporation, more formal, for larger ventures |
Formation typically via commercial registry / Fundempresa, notary, NIT at SIN, municipal licenses (by city) and a bank account. Foreigners need valid permanencia/cédula. Check local timelines and capital requirements.
Banks & FX
- Account opening: usually foreigner ID + NIT + proof of address; strict KYC
- USD: 2024–early 2026 scarce availability and a parallel market; June 2026 easing of the long-standing peg / more flexible rate — spreads and limits can keep shifting
- Outbound transfers: follow bank rules and documentation; informal channels are risky/illegal
- Cards: Visa/Mastercard usable in cities, but not everywhere — cash reserve
Germany–Bolivia double tax treaty
Between Germany and Bolivia there is a DTA of 30 September 1992 (entry into force 12 July 1995; generally applicable from 1 January 1991). It covers avoidance of double taxation on income and wealth. BMF DTA overview status as of 1 January 2026: treaty still listed. Individual cases (residency, permanent establishment, withholding tax) with tax advisors in both countries.
Sources
Disclaimer: This page is for general guidance only and is not legal, tax or immigration advice. Rules and prices change — verify with official sources.