On 29 December 2020, Bolivian President Luis Arce promulgated a law providing for the introduction of a new wealth tax, which was approved in parliament on 17 December and applies from 2020. Originally proposed in order to help fund the costs of dealing with the COVID-19 pandemic, the final version of the tax is an annual tax.
The tax applies for individuals with assets valued at greater than BOB 30 million, including worldwide assets of resident individuals and assets in Bolivia of non-resident individuals. Companies, cooperatives, and other forms of legal entities are specifically excluded from the tax. The tax rates are based the net asset value after some adjustments as follows:
The annual deadlines are to be set through regulations, with the possibility of a 15% discount for advance (early) payment. Failure to pay the tax will result in a fine equal to 200% of the tax due.
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