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Bolivia: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated on a regular basis. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 13 April 2020

The Bolivian government issued guidance (Supreme Decree No. 4198 (18 March 2020)) to provide tax relief in response to the coronavirus (COVID-19) pandemic. The tax authority issued Resolution No. 102000000008 to implement measures provided by Supreme Decree No. 4198.

The tax relief measures include a deferral of tax payments for corporate income tax until 29 May 2020, and an extension of the value added tax (VAT) credit to 31 December 2020 for certain expenses.

Additional information.

Corporate income tax measures implemented

  • Deduction of donations in cash destined for the prevention, diagnosis, control, attention and treatment of the COVID-19 in favor of authorized public and  private health centers, made until the December 31, 2020, up to 10% of the taxable net profit gathered from the January 1 to December 31, 2019.
  • Payments for corporate income tax deferred until May 29, 2020.
  • Monthly payments of up to 3 months with the 50% of the initial payment until before the 1st of June 2020, without the charge of Value Maintenance, Interests  and/or Warranties
  • Time limit for the filing of CIT Tax Returns (Forms 500, 510 and 501) from companies with tax period closing of the 31st of December 2019, and the physical and digital presentation of Financial Statements, Annual Memory, Complementary Tax Information, 
  • Transfer Pricing information and submission of the Electronic Form F-110 v.3 (taxpayers who exercise liberal professions or jobs) as appropriate, that require to be presented to the Tax Administration, extended until the 29th of May 2020.

Transactions tax measures implemented

  • Increase of the proportion of the payment on account of the IT for the payment in cash of the IUE until the 15th of May 2020, of the following taxpayers of the  General Regime:
  • GRACOS (Great Taxpayers) and PRICOS (Main Taxpayers) applying a factor of 1:1.1
  • Taxpayers categorized as Resto applying a factor of 1:1.1
  • Reduction of the IT tax base, excluding the effectively paid VAT by the following taxpayers of the General Regime:
  • GRACOS (Great taxpayers) and PRICOS (main taxpayer) for 3 months.
  • Taxpayers categorized as Resto for 6 months
  • Filing and/or payment of tax returns for February and March extended until que expiration date of the tax period of April.

Value Added Tax measures implemented for Independent professionals

  • Extension of the VAT tax credit until the 31st of December 2020 for the expenses in health, education and alimentation from their direct familiar nucleus
  • Filing and/or payment of tax returns for February and March extended until que expiration date of the tax period of April.

Measures implemented for special tax regimes

  • Obligations of the Simplified Tax Regime for the bimester of January and February 2020 extended until the 11th of May 2020.
  • Time limit for the filing of Tax Returns, payment of taxes and compliance of formal duties of the Integrated Tax System for the trimester from January to March 2020 extended until the 29th of May 2020.

Other filing requirements extended

  • Expiration of the payments of quotes of payment facilities expired or to expire on the 28th of February of 2020 and the 31st of March of 2020, time limit for the presentation of CEDEIM requests with expiration date on March 2020, and 
  • Time limit for the presentation of CENOCREF requests with expiring date on March 2020, extended until the 30th of April 2020.
  • Time limit for the compliance of formal obligations such as submission of Sales and Purchase VAT Listings, Information Agents and others, with expiring date on March and April 2020, extended until the 11th of May 2020.
  • Time limit for the presentation of Tax Returns, payment of taxes and compliance of formal duties for the CR-VAT Direct taxpayers for the trimester from January to March 2020 extended until the 29th of May 2020.

Additional Information

Social Security Contributions

  • Suspension of requirements relating to salary, wages and work-related accident payroll (under the control of the Ministry of Labor) from March 2020         
  • Deferral of the monthly salary, wages and work-accident payrolls (also under the control of the Ministry of Labor) for March and April 2020, until 30 May 2020
  • Extension of the time limits for remitting long-term social security contributions (under the control of the pension funds administrators) that are due during the “lockdown” quarantine period
  • Extension of the time limits for remitting short-term social security contributions (under the control of the national health fund) due for February 2020, until 20 April 2020.

Additional Information