Tax In Bolivia

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in Bolivia is complying with the country’s tax system. As well as paying tax in Bolivia, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

If you’re working in Bolivia under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Bolivia for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Bolivia, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Bolivia through PAYE is left with the prospect doing everything themselves.

Do you know much about Bolivian Tax Law? Does Bolivia have a tax treaty with your home country? You will need to find out or find someone who can help!

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in Bolivia, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in Bolivia are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Bolivian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Bolivian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Bolivian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in Bolivia, many of whom are experts in tax and immigration laws. If you have any questions about tax in Bolivia, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Bolivian work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Bolivia but without the overhead of directly dealing with the Bolivian tax authorities. Get in touch with us today for some reliable advice on tax in Bolivia!

When Do You Need to Lodge Your Tax Return?:
30 April (of the year following the income tax year)
Tax Filing Deadline :
30 April (of the year following the income tax year)
Can you file it online? :
Yes, https://ov.impuestos.gob.bo/
Currency:
Bolivian Boliviano (BOB)
Tax-free Threshold in:
N/A
Grossed Income:
All
Tax Rate:
13%
How long does it take to set up:
45 days
How much does it cost:
BOB10,568.50 + BOB80 per page (company deed)
Is it easy? :
Starting a Business Rank: 179/190 (Source: World Bank)
How to File Taxes in:

Individuals receiving employment income are not required to file taxes. Employers will file and pay taxes withheld on your behalf.

Notes:

Employment income is subject to a 13% tax rate in Bolivia.

Does the 183 day rule apply in:

No

When do you become a tax resident in:

There is no residency for tax purposes in Bolivia.

Am I taxed on my global income in:

Individuals are taxed on their Bolivia-source income only.

Client comment

  • Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter.

    Prishen Pillay Shell International Trading & Shipping / Global DBA Operations Lead
  • I utilized PEO services with Contractor Taxation & have found the services invaluable. We had to quickly establish a presence in China to meet a perceived large market, knowing how difficult it could be setting up a complete operation there. CT helped us immensely to navigate these waters and establish this beachhead without a lot of the normal distractions associated w/opening a full operation. This allowed us to focus on our client’s expectations and keep us moving forward in the market.

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