iCalculator™ BO: Bolivia Tax Calculators

Welcome to iCalculator™ BO, your comprehensive suite of free tax calculators for Bolivia. iCalculator™ has provided free tax calculators for Bolivia since 2019. Since those early days we have extended our resources for Bolivia to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Bolivia Tax Calculator and salary calculators within our Bolivia tax section are based on the latest tax rates published by the Tax Administration in Bolivia. In this dedicated Tax Portal for Bolivia you can access:

Bolivia Tax Calculator 2024/25

The Bolivia Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Bolivia. This includes calculations for

1. Employees in Bolivia to calculate their annual salary after tax.
2. Employers to calculate their cost of employment for their employees in Bolivia.

Discover Bolivia

Bolivia is a sovereign state situated in the heart of South America. This landlocked country spans over 1,098,581 km², making it the fifth largest in South America and the largest landlocked country in the Southern Hemisphere. Bolivia's diverse geography ranges from the Andes Mountains in the west to the Amazon basin in the east. It's divided into nine departments, each with unique cultural and geographic characteristics. Bolivia shares its borders with several countries: Brazil, Argentina, Peru, Chile, and Paraguay.

The country's population is a rich tapestry of multiethnic groups, including Amerindians, Mestizos, Europeans, Asians, and Africans. This cultural diversity is reflected in its official languages, Spanish and 36 indigenous languages, with Guarani, Aymara, and Quechua being the most commonly spoken. Bolivia's history is deeply rooted in its pre-colonial civilizations, most notably the Tiwanaku Empire, and its subsequent colonization by Spain. The influence of these historical periods is evident in the country's rich cultural heritage and traditions.

Regarding the economy, Bolivia has experienced significant transformations over the years. It is classified as a lower-middle-income country by the World Bank. Historically, Bolivia's economy was heavily dependent on a single-commodity focus, shifting from silver to tin to coca. However, in recent decades, there has been a diversification with mining, especially natural gas and zinc extraction, playing a dominant role in its export economy. Agriculture, forestry, fishing, and manufacturing are also important sectors, contributing to the country's economic activities. The manufacturing sector includes textiles, clothing, refined metals, and refined petroleum products. Bolivia is notably rich in minerals like tin, silver, lithium, and copper and is known for its production of coca leaves and refined cocaine.

Despite being one of the poorest countries in South America, Bolivia has made significant strides in reducing poverty and improving its GDP growth, which is among the fastest in South America. However, the country still faces challenges like high public debt and declining natural gas production, which have limited its growth prospects.

For more information about Bolivia's neighboring countries, you can visit their respective pages on iCalculator: Brazil, Argentina, Peru, Chile, and Paraguay.

Overview of Taxation in Bolivia

The tax system in Bolivia encompasses various types of taxes, including corporate income tax, personal income tax, value-added tax (VAT), withholding taxes, capital gains tax, net wealth tax, and inheritance and gift tax. This diverse tax structure reflects the country's approach to revenue generation and economic management.

Corporate Income Tax

Corporate entities in Bolivia, including branches of foreign companies, are subject to corporate income tax. The rate for most companies is standard, but it varies for specific sectors like mining, financial institutions, and insurance companies. These sectors may face additional taxes depending on certain conditions, such as profitability and specific business activities.

Personal Income Tax

Personal income tax in Bolivia is applied to Bolivian-source income, irrespective of the individual's nationality or residence status. This tax is levied on various forms of income, including employment income and investment income. Employers are responsible for withholding and remitting this tax to the authorities.

Value-Added Tax (VAT)

VAT is a significant part of Bolivia's tax system, applied to the sale of goods and provision of services within the country. The rate is uniform across different sectors, and this tax is included in the final price of goods and services, leading to an effective rate that slightly exceeds the nominal rate.

Other Taxes

• Withholding Tax: This applies to various cross-border payments, including interests, rents, royalties, and dividends, paid to non-resident entities or individuals.
• Capital Gains Tax: In Bolivia, capital gains are generally subject to the normal corporate income tax rate.
• Net Wealth Tax: This tax is levied on individuals who own a net wealth exceeding a certain threshold, with progressive rates.
• Inheritance and Gift Tax: These taxes are applied to the transfer of wealth through inheritance or gifts, with rates varying based on the value of the inheritance or gift.

Understanding the intricacies of Bolivia's taxation system is essential for individuals and corporations engaging in economic activities within the country. For detailed information on current tax regulations, including the latest tax tools and tax tables, visit Bolivia's Tax Hub on iCalculator, where you can find comprehensive resources tailored to your tax planning needs.