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13.2. Thin-capitalization and other Restrictions to Interest Deduction

The deduction of interest paid to non-residents is limited to a rate not exceeding LIBOR plus three percentage points (LIBOR + 3%) and interest paid to national owners/shareholders is restricted to the interest rate not exceeding the official interest rate on loans published by the Central Bank of Bolivia. Further, interest deductible on shareholder loans may not exceed 30% of the total interest paid to third parties.

In the case of the oil industry, the total amount of financial liabilities of the company may not exceed eighty percent (80%) of the total investment actually made by the company in Bolivia.