Bolivia: Tax treatment of nonresident individuals earning Bolivia-source income

Beginning 1 January 2023, nonresident individuals subject to tax must declare and pay 13% RC-VAT on a monthly basis

Tax treatment of nonresident individuals earning Bolivia-source income

Article Posted date 01 May 2023

Supreme Decree No. 4850 (dated 28 December 2022) establishes the tax treatment of nonresident individuals under the individual (personal) income tax regime (regimen complementario del impuesto al valor agregado or RC-IVA).

  • The tax is applicable to fees, remunerations and income from payments, whatever their denomination, of nonresident individuals originating from work carried out in Bolivia, under contracts with foreign entities. However, the income of athletes and artists for work in contest activities, competitions, or international tournaments is not subject to the tax.
  • Beginning 1 January 2023, nonresident individuals subject to the tax must declare and pay the 13% RC-VAT on a monthly basis, on the total amount of income, within a period of three days following the end of each monthly period or until leaving the country, whichever occurs first, regardless of the amount of time they remain in the country.
  • Such individuals must register with the tax authority to make the subsequent declaration of the tax. Digital forms to administer the tax are still in the process of being enabled, but are expected to be available in the coming days.

Read an April 2023 report (Spanish) [PDF 425 KB] prepared by the KPMG member firm in Bolivia

 

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