I. TAX UPDATES
1. National Government
1.1. Tax measures introduced by Supreme Decree 5563 (February 28, 2026)
This Supreme Decree 5563 introduces several tax measures with implications for corporate tax planning, compliance, and financial management. Key impacts includes: reduction in withholding taxes on dividends of subsidiaries and benefits of branches conditioned to reinvestments; accelerated depreciation on assets acquired in 2026; amendments to the mechanism for offsetting Corporate Income Tax (IUE) against the Transactions Tax (IT); the expansion of deductible input Value Added Tax (IVA) to self-employed professionals; adjustments to the VAT treatment of non‑creditable input VAT related to zero‑rated operations; updated Special Consumption Tax (ICE) rates applicable to beverages and specific types of vehicles; and the extension of corporate reorganization rules to sole proprietorship entities.
2. Legislative Developments – Chamber of Deputies
2.1. Bill proposes amending the Bolivian Tax Code and establishing an extraordinary tax amnesty Regime.
Bill PL-199/25‑26
This Bill proposes amendments to the Bolivian Tax Code, providing that in audits initiated by the tax administration, tax liability shall accrue on the date of communication of the audit’s initiation. It also introduces an extraordinary tax amnesty granting a waiver of interest, penalties, and fines (accessories) due from January 1, 2013, to the date of the law’s publication, provided that taxpayers pay the principal.
2.2. Bill proposes repealing the Net Wealth Tax (IGF) and the Financial Transactions Tax (ITF).
Bill PL-115/25‑26
The Bill proposes repealing both the Net Wealth Tax (IGF) and the Financial Transactions Tax (ITF), citing their limited contribution to overall tax revenues and their alleged negative impact on investment, savings, capital inflows, and economic activity.
2.3. Bill proposes reinstating the full VAT input tax credit on fuel purchases.
Bill PL-193/25‑26
This Bill proposes restoring the 100% VAT input tax credit for gasoline and diesel purchases.
2.4. Bill proposes creating the El Alto Special Economic and Industrial Zone (ZEEI‑EA)
Bill PL-253/25‑26.
This Bill proposes the creation of the El Alto Special Economic and Industrial Zone (ZEEI-EA) for a 30-year term to promote industrialization, attract investment, and foster value-added exports. Key impacts include significant tax exemptions (up to 10 years of Corporate Income Tax, which is a tax on company profits, and ongoing reduced rates), 0% Value-Added Tax (VAT, a tax levied on the sale of goods and services) on domestic inputs, exemption from Customs Tariff (import and export taxes) and import VAT for machinery and equipment, municipal tax incentives, and a requirement that at least 70% of the workforce reside in El Alto. These measures are expected to stimulate local industry, investment, and employment.
3. National Tax Service (SIN)
3.1. Clarifications on VAT input tax credits for passenger and cargo transportation Board Resolution 102600000003 (February 12, 2026)
This Resolution amends and supplements RND 10‑0019‑16, clarifying which expenses qualify as directly related to interdepartmental and international passenger and cargo transportation for VAT input credit deduction purposes. It addresses invoicing and user identification requirements and expressly recognizes certain technology, telecommunications, roadside assistance, and communication equipment services as qualifying expenses.
3.2. Deadline extension to align products with the National Tax Registry (RNC)
Board Resolution 102600000004 (February 23, 2026)
The Resolution extends the deadline until May 29, 2026, for Value Added Tax (VAT) taxpayers to align product codes—unique identifiers for goods and services in sales systems—with the economic activities registered in the National Taxpayer Registry (RNC). This extension provides additional time for system updates. Compliance is mandatory to maintain authorization to issue tax invoices, so affected businesses must ensure timely alignment to avoid disruptions in invoicing.
II. CUSTOMS UPDATES
1. Customs Tariff and IEHD Reduction for Jet Fuel A-1 Imports. Supreme Decree 5543 (February 9, 2026)
This Supreme Decree reduces the Customs Tariff to 0% and sets the specific rate on the Special Tax on Hydrocarbons and its Derivatives (IEHD) to Bs 0 per liter for imports of Jet Fuel A-1. The main impact is a reduction in costs for importers, contributing to more stable consumer fuel prices.
2. 0% Customs Tariff on soybean imports. Supreme Decree 5547 (February 18, 2026)
This Supreme Decree establishes a 0% Customs Tariff rate on soybean grain imports under tariff subheading 1201.90.00.00, effective through December 31, 2026.
3. Authorization for the importation of crude oil by YPFB and refineries. Supreme Decree 5548 (February 18, 2026)
This Supreme Decree grants YPFB (Yacimientos Petrolíferos Fiscales Bolivianos) and refineries exceptional authorization to import crude oil (unrefined petroleum) to ensure the continuity of fuel supply in the domestic market. Refineries may import crude oil for processing purposes and must sell the refined products to YPFB or authorized wholesale distributors. Additionally, a Special Tax on Hydrocarbons and Their Derivatives (IEHD) rate of Bs 0.00 per liter is established for products derived from imported crude oil for one year.
III. MUNICIPAL TAXES UPDATES
1. Municipality of Tarija – Extension of Municipal Tax Relief
Municipal Law 0519-2026 (February 2, 2026)
This Law extends the municipal tax relief program, allowing taxpayers to regularize outstanding Property Tax (IMPBI) and Property Transfer Tax (IMT) liabilities for fiscal years up to 2024, with a partial or full amnesty on interest and penalties, depending on payment terms.
2. Municipality of Santa Cruz de la Sierra – Extension of Tax Amnesty
Municipal Tax Administrative Resolution 009/2026 (February 11, 2026)
The Resolution extends the payment deadline for 2025 municipal tax obligations to March 20, 2026. Key impacts are direct tax savings for property, vehicle, and business license taxpayers in Santa Cruz de la Sierra through discounted rates, promoting faster payment and improved compliance.
3. Municipality of Cochabamba – Municipal Tax Amnesty
Municipal Law 1800/2026 (February 24, 2026)
This Law establishes an exceptional period for the full waiver of interest and penalties on outstanding municipal tax debts in the Cercado Province of Cochabamba, effective until March 20, 2026, subject to payment of the principal tax due.
IV. TAX RELEVANT ANOUNCEMENTS
1. Bill on tax transparency and tax relief.
On February 19, 2026, the Executive Branch, through the President and the Minister of Economy and Public Finance, announced the submission of a Bill of Law to the Legislative Assembly, proposing five tax measures to broaden the taxpayer base, reduce late tax payments, and enhance transparency in the fiscal system. “Among the main proposals are the creation of the SIETE‑RG regime for entrepreneurs with annual income of up to Bs 400,000; the reduction of the general statute of limitations for tax matters to four years; an extraordinary amnesty regime for tax debts generated up to December 31, 2017; an exceptional regularization regime for tax obligations generated from 2018 until the publication of the future law; and an adjustment to the VAT tax base which, in practical terms, would reduce its effective rate from 14.94% to 13%. To enter into force, this Bill is subject to approval by the Legislative Assembly and its subsequent regulation.”
2. Tax appeals authority reports zero backlog in 2025
The Tax Appeals Authority (AIT) reported a 0% procedural backlog for fiscal year 2025, issued 3,994 decisions totaling over UFV 1.040 billion (the Unidad de Fomento de Vivienda, which is an indexed monetary unit), and resolved all cases within statutory deadlines. Nearly half of judicial challenges resulted in favorable decisions, underscoring AIT’s efficiency and positive outcomes for the institution
V. TAX AMNESTY MONITOR
Municipalities
Tax amnesty programs, which temporarily waive penalties or interest for unpaid taxes, remain a key tool for improving tax compliance and reducing arrears. These programs have helped boost municipal revenues and decrease outstanding tax balances in participating localities. As of this edition, active amnesty regimes have been identified in La Paz, Achacachi, Chulumani, Palos Blancos, Cochabamba (Cercado), Santa Cruz de la Sierra, San Borja, Buena Vista, San Pedro, Montero, Warnes, and Ascensión de Guarayos.
