I. HIGH IMPACT TAX UPDATES
1. Transition to a Flexible Exchange Rate Regime. Ministerial Resolution No 245 (June 26, 2026) and New Foreign Exchange Operations Regulation. Board Resolution BCB No. 88/2026 (June 26, 2026).
Ministerial Resolution No. 245 and Central Bank of Bolivia Board Resolution No. 88/2026 established Bolivia’s transition towards a flexible exchange rate regime. This marks a departure from the framework under which the official selling exchange rate of BOB 6.96 per US dollar operated as a fixed reference for foreign currency transactions.
We highlight the following aspects:
- The Central Bank of Bolivia will calculate and publish the Official Exchange Rate daily, based on US dollar purchase transactions carried out by financial institutions.
- The published Official Exchange Rate will apply to transactions carried out on the following business day. Accordingly, companies will need to identify the applicable exchange rate at the time of invoicing, collection, payment, importation, accounting recognition, and financial statement closing.
- Daily fluctuations in the Official Exchange Rate may affect the valuation in bolivianos of transactions, assets, and liabilities denominated in US dollars, potentially generating exchange differences with an impact on accounting results.
- From a tax perspective, the new regime may affect the determination of VAT and the Transaction Tax (IT) in transactions agreed in foreign currency, as well as the determination of Corporate Income Tax (IUE) where gains or losses arise from foreign exchange remeasurements.
The shift toward a flexible exchange rate regime introduces a relevant change for companies’ financial, accounting, and tax management. We therefore recommend reviewing invoicing, collection, payment, accounting recognition, contractual, import, and tax determination criteria applicable to foreign currency transactions.
2. Amendment to the Invoicing System for Foreign-Currency Transactions. National Tax Service (SIN). RND No. 102600000026 (July 15, 2026).
The RND No. 102600000026 aligns the Invoicing System with the new foreign exchange regime by requiring foreign-currency transactions to record the Official Exchange Rate applicable on the transaction date, based on the daily official publication issued by the Central Bank of Bolivia. It also maintains the option to state amounts in bolivianos and/or foreign currency on invoices issued in free trade zones and on pre-valued invoices for international boarding fees; however, for Commercial Export Invoices, stating such amounts becomes mandatory.
3. Reduction of the Customs Duty by 5% for the importation of goods and modification of the taxable base calculation. Bolivian National Customs Authority. Supreme Decree No. 5646 (June 29, 2026).
The Supreme Decree No. 5646 reduces until December 31, 2027, the Customs Duty rates applicable to the importation of goods across the entire tariff universe. In practical terms, the measure reduces the current rates by five percentage points, for example, from 10% to 5% and from 5% to 0%.
Within the framework of the new flexible exchange rate regime, the Bolivian National Customs Authority adjusted the completion of customs declarations to apply the current Official Exchange Rate published by the Central Bank of Bolivia for the conversion of values into local currency, replacing the previous fixed reference of Bs 6.96 per USD 1.
4. Exceptional Authorization for the Importation of Petroleum-Derived Products. Supreme Decree No. 5644 (June 29, 2026).
The Supreme Decree exceptionally authorizes people and legal entities, whether public or private, to import petroleum-derived products for their own consumption and/or commercialization in the domestic market. The measure enables private sector participation in the supply of fuels and other derivatives, subject to authorization, control, differentiation, traceability, and oversight rules.
Likewise, it incorporates temporary tax incentives, including an IEHD rate of Bs 0.00 per liter until 2030 and the deferral of the Customs Duty to 0% for certain gasoline products until December 31, 2026. Failure to comply with the established conditions may result in economic sanctions and the revocation of licenses.
5. Application of Withheld Funds to Payment Plans. National Tax Service (SIN). RND No. 102600000022 (June 29, 2026).
The RND No. 102600000022 allows taxpayers with funds retained as a coercive measure to request that the SIN allocate such amounts to the initial payment and/or the cash guarantee required to access a payment facility. The measure is relevant because it allows resources already immobilized by the Tax Administration to be used to facilitate the regularization of the debts.
The application of this mechanism is not automatic. The taxpayer must submit a note to the corresponding District Office or GRACO Office, which must accept or reject the request within two business days. If the request is accepted, the taxpayer must provide the payment facility number generated through the Virtual Tax Office, and the allocation must be made within a maximum period of three business days.
6. Bill on Amendments to the General State Budget. Bill No. 425/25.
The Bill seeks to amend the 2026 General State Budget and introduce measures aimed at addressing the current economic environment, encouraging investment, and promoting domestic production. The initiative has been approved by the Chamber of Deputies and is currently pending review by the Senate.
From a private-sector perspective, the most relevant tax measure is the proposed five-year exemption for customs duties and Value Added Tax (VAT) on the importation and domestic sale of inputs, seeds, genetic material, drones, tools, machinery, equipment, capital goods, and industrial plants intended for the agricultural, industrial, construction and mining sectors. The measure is not yet in force; its implementation will depend on approval by the Senate, subsequent enactment, promulgation and publication.
II. TAX INITIATIVES TO FOLLOW UP AND CONTROL
1. Bill Creating the Special Economic Zone of the Gran Chaco Autonomous Region. Bill No. 190/25.
The Bill proposes the creation of a Special Economic Zone within the Autonomous Region of Gran Chaco (Yacuiba, Caraparí, and Villa Montes), aimed at attracting private investment and fostering industrial development through an incentive regime that includes, among other measures, a ten-year Corporate Income Tax (IUE) exemption, subject to the reinvestment of 50% of profits; customs benefits for the importation of machinery and production inputs; tax exemptions applicable to certain transactions carried out within the SEZ; and the implementation of simplified administrative procedures.
III. OTHER TAX NEWS
1. Regulations on the Procedure for Tax Consultation Requests. National Tax Service (SIN). RND No. 102600000021 (June 10, 2026).
The RND No. 102600000021 establishes the requirements and procedure for handling tax ruling requests submitted to the National Tax Service (SIN) regarding the application and scope of tax rules to specific facts, acts, or transactions. The ruling may be binding on the Tax Administration only with respect to the requesting taxpayer and the specific case submitted, provided that the relevant facts, background, legislation, or applicable case law do not change.
This RND sets out detailed admissibility requirements, emphasizing that the request must be preventive or interpretative and expressly excludes matters that are already subject to audit, administrative challenge, or still within the statutory period to activate available defense mechanisms. The SIN is required to issue a decision on admissibility within ten days and to provide a substantive answer within thirty days, which may be extended for an additional thirty-day period if necessary. Failure to respond does not imply acceptance of the taxpayer’s position; accordingly, ruling requests must be carefully structured, highly precise from a technical standpoint, and supported by comprehensive and well-organized documentation.
IV. TAX AMNESTY
These tax amnesties remain a strategic mechanism for mitigating tax contingencies, resolving outstanding liabilities, and optimizing corporate fiscal planning. Recognizing their financial impact on our clients, PPO Indacochea continuously monitors active amnesty programs at both the departmental and municipal levels. In this edition, we highlight four active regulation programs currently in force within the municipalities of La Paz, Cochabamba, Sucre, and Quillacollo.
V. INSTITUTIONAL ACTIVITY AND PUBLICATIONS BY THE TAX TEAM
The firm maintains an active presence in technical and academic forums, reinforcing its positioning and contributions to tax practice.
PPO Indacochea’s tax team maintains an active presence in forums, webinars, specialized media, academic publications, and institutional events for purposes of analysis, discussion, and knowledge sharing, both nationally and internationally.
These activities reflect the firm’s commitment to the technical development of tax law, regional integration, and the analysis of issues relevant to taxpayers.
During June 2026, our professionals participated in the following activities:
- Fabricio Argandoña published the article “Bolivia and the Common Reporting Standard (CRS): Assessment of the Regulatory Framework for its Implementation”, as part of the academic activities of Financial and Tax Law of the Faculty of Legal and Social Sciences of UPSA, with the support of the Center for Social and Legal Research (CISJ-UPSA) and the Legal Research Institute (IJJ Jurídica). The publication analyzes Bolivia’s position regarding a potential implementation of the CRS and the challenges of the Bolivian regulatory framework in relation to tax transparency and the automatic exchange of information. See the publication on LinkedIn.
