TAX PRACTICE GROUP Multi-Jurisdictional Survey TAX DESK BOOK

Transcription

1 BOLIVIA Introduction TAX PRACTICE GROUP Multi-Jurisdictional Survey TAX DESK BOOK CONTACT INFORMATION Fernando Rojas C.R. & F. Rojas P.O. Box 662 La Paz, Bolivia fernando@rojas-lawfirm.com 1. Please give a brief overview of the types of taxes imposed in your jurisdiction (i.e., direct and indirect taxes and their components.) VAT 13% levied on sale of goods, contracts, services and imports. COMPLEMENTARY TAX TO THE VAT 13% levied on rents, any exploitation of real estate, interest, salaries or any other remuneration to employees, fees of board members and comptrolllers. PROFIT TAX 25% levied on net profits of legal entities. ANY INCOME REMITTED ABROAD. TAX ON REAL ESTATE AND VEHICLES accoding to a scale. TRANSACTION TAX 3% levied on the gross income of any individual or legal entity.

2 DONATIONS 20%. INCOME TAXES AS APPLIED TO BUSINESS ENTITIES AND INDIVIDUALS Calculation of Income/ Profit Taxes 2. How is the taxable base determined? The taxable base for the profit tax is on net profits. 3. What revenues are included? The revenues that are included are the ones related to the purpose of the legal entity. 4. What deductions are allowed? The deductions that are allowed are those ones related to the activities of the legal entity. 5. What are the major expenses that are not deductible? As above mentioned. 6. What are the applicable federal rates? There are no federal taxes. 7. What are the applicable state and/ or other local rates? There are no state or other local taxes, except the Municipal taxes that are levied on vehicles and real estate. 8. What are the applicable capital gains rates and base, if different and concessional tax treatment in case of business re-organization such as amalgamation, slump sale, demerger, etc? No capital gains.

3 9. How are operating losses handled? They are tax deductible. 10. How are capital losses handled? Capital losses remaind in the equity side of the balance sheet until the amount supersedes the paid-in capital in more than 50%. Thereafter, the paid-in capital has to be increased and if not the legal entity must be liquidated. Territorial Rules 11. What are the residence rules? The tax system is based on source income. 12. Is worldwide income taxed? No. 13. Tax credits - Are there tax credits relating to legal dispositions other than provisions in Double Taxation Treaties, on the possibility of deducting taxes paid abroad, or any others? No. Withholding Taxes 14. What are the rates on dividends for withholding taxes? 15. What are the rates on royalties for withholding taxes? 16. What are the rates on interest for withholding taxes?

4 17. What are the rates of withholding tax on profits realized by a foreign corporation? 18. Please list any other rates on withholding taxes that we should be aware of.. Tax Returns and Compliance 19. What is the taxable reporting period? December 31st., March 31st. or September 30th. 20. What are the due dates for the filing of tax returns? Monthly 21. What are the key compliance requirements? 22. Are there any other requirements that we should be aware of regarding tax returns and compliance? INDIRECT TAXES 23. Are there any indirect taxes in your jurisdiction? 24. How does it operate? Is it a VAT or a sales tax?

5 There is a VAT thas it has to be included in the price of all Invoices. 25. How is the taxable base determined? Fixed rate of 13% 26. What are the applicable rates? 13% 27. Are there any exemptions? Any sale of shares or capital quotas are tax excempted. Non profit legal enties do not pay the profit taxl 28. Are there any other taxes such as debit or financial transactions taxes enforced in you jurisdiction? PARAFISCAL CONTRIBUTIONS 29. Are there any parafiscal contributions (i.e. social security, science and/ or technology)? The following percentages are paid by employers and employees form the payroll: Employers pay: 1.71% to Pension Funds 10% to Social Security 2% to living quarters 12 % to Pension Funds Employees pay 12.21% from the payroll for the Pension Funds. 30. How do they operate? As above mentioned

6 31. How is the taxable base determined? As mentioned in numeral What are the applicable rates? As above metioned. 33. Are there any exemptions? INHERITANCE AND GIFT TAXES 34. Are there inheritance taxes, gift taxes or any other taxes like Wealth Tax, etc.? Yes 35. If you answered yes to the question above, please describe what triggers the requirement for the tax, what the rate of tax is, and what is included in the taxable base. Inheritance tax is 1% plus 3% of the Transaction Tax. Gift Tax 20%. OTHER MATTERS 36. Are there any tax incentives granted for various matters such as research and development, investment in certain industries/ areas, etc.? Yes 37. If so, please indicate if there are any of the following: anti-deferral regimes; transfer pricing provisions; tax avoidance measures like legislated General Anti- Avoidance Rules, etc.; controlled foreign companies regulations; thin capitalization rules No answer provided.

7 38. List the countries in which there are tax treaties. This could impact the withholding taxes on various distributions and to the extent possible, please itemize them below. Please include the impact upon withholding on compensation, interest, dividends or other distributions for each country listed. United Kingdom, Spain, France, Germany, Sweden, Argentina, Venezuela, Colombia, Ecuador and Peru.