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6.2. Main Differences between Commercial and Tax Accounting

Commercial Accounting is the starting point of tax accounting. Both are based on General Accounting Principles, however, for tax purposes only 9 accounting standards (Numbers NC-1, NC-2, NC-3, NC-4, NC-5, NC-6, NC-7, NC-8 y NC- 9) have been approved by the tax administration in order to assess the net income tax base. Large companies prepare their financial statements usually under IFRS (International Financial Reporting Standard), however, for tax purposes such standard is not allowed in Bolivia.

The Commercial Code provides the main rules to keep supporting documents and accounting. Nevertheless from a practical view, such requirements became obsolete nowadays since the Commercial Code dates back to the 70s.