background image

Bolivia Relaxes Tax Compliance Rules and Provides New Extension of Tax Payment Installment Facilities for Non-Compliant Taxpayers — Orbitax Tax News & Alerts

Bolivia has published Law No. 1448 of 25 July 2022 in the Official Gazette, which relaxes certain tax compliance rules. Measures include:

  • Extension of the time limit to pay outstanding tax amounts without a penalty from 10 days after the official claim is issued to 20 days; and
  • Reduction in the penalty for unpaid tax obligations from 100% of the unpaid tax to 60%.

The law also provides for the extension of tax payment installment facilities for taxpayers that previously failed to fulfill their payment obligations under installment agreements up to the date prior to the law's publication (i.e., up to 24 July 2022), even if collection actions are already being enforced. Taxpayers may continue their payments in installments with the same conditions and benefits provided under their original installment agreement as long as payments are resumed by the last business day of the third month after the law was published (i.e., by 31 October 2022). Partial payments made up to 24 July 2022 will be charged as payments on account of the tax debts or fines contained in the installment agreement.

The law includes certain personal income tax amendments as well, including the extension of the personal income tax rules to the income of individuals from liberal professions, which is currently taxed according to corporate income tax rules.