Bolivia (BO)
Bolivia is South America's highest and most landlocked country — a plurinational state of dramatic contrasts, from the world's highest navigable lake (Titicaca at 3,812m) and the vast salt flats of Uyuni to the tropical Amazon basin.
Tax & Payslip Guide
Understanding your taxes in Bolivia — tax year January 1 – December 31 (calendar year).
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | ∞ | 0% | Bolivia has no separate personal income tax (Impuesto a la Renta de las Personas Físicas). Instead, employees pay RC-IVA (Régimen Complementario al IVA) — a 13% withholding applied to salary income above Bs.4 minimum wages. |
| 0 | ∞ | 13% RC-IVA | Employees pay 13% RC-IVA on gross salary minus the equivalent of 4 minimum wages (Bs.2,500 × 4 = Bs.10,000/month in 2026). Employees can offset this by collecting invoices (facturas) from their personal spending — effectively a consumption tax refund system. Most employees with good invoice habits pay little or no RC-IVA. |
🏛️ Social Contributions
Mandatory long-term pension contribution to the Gestora Pública de la Seguridad Social de Largo Plazo (state pension fund, replaced private AFPs in 2023). 10% of gross salary credited to individual account + 1.71% solidarity contribution to shared risk fund + 0.5% insurance premium. Employer solidary contribution increased from 3% to 3.5% under Law 1582.
Health insurance contributions to Caja Nacional de Salud. Employee 10% + employer 10% of gross salary. Covers employee and dependants for public health services. In practice, employer contributions provide the main healthcare coverage; employee 10% goes toward pension.
Employer-only contribution for workplace accident and occupational disease insurance. Part of the overall Gestora/CNS contribution package.
Employer contribution to housing fund (Fondo Nacional de Vivienda). Does not directly benefit the individual employee but funds social housing programmes.
🛒 VAT Rates
Bolivian IVA is included (incorporated) in all prices — not shown separately on receipts. The 13% is embedded in the sale price. Businesses remit the difference between IVA collected and IVA paid on inputs to SIN monthly. This is why collecting facturas (invoices) is important for employees — they can offset RC-IVA with IVA already paid through purchases.
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
Bolivia does not offer a special expat tax regime. Foreign residents who become Bolivian tax residents (>183 days in a 365-day period) are taxed only on Bolivian-source income. Bolivia uses a source-based (territorial) tax system — foreign-source income (e.g., from a foreign employer or investments) is generally not taxed in Bolivia. RC-IVA on employment income applies from the first month of formal employment.
📋 Double Tax Treaties
Bolivia has signed limited double taxation agreements. Notable treaties: Andean Community (CAN) Decision 578 — covers Colombia, Ecuador, Peru; Argentina, France, Germany, Sweden, and a limited set of other countries. No DTA with USA, UK, Canada, or Australia. Foreign-source income not taxed in Bolivia under the territorial system, so DTAs are mainly relevant for corporate structures and cross-border business.
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