Doing business in bolivia: Taxation for beginners in 7 steps
The taxes in Bolivia have their complexity as in any country. Below is a brief overview and comprehensive main points about taxes in Bolivia. You can also check the box in Bolivia taxes overall.
1. Meet taxes which may be required.
Which taxes should companies refer to Value Added Tax (IVA 13%), Transaction Tax (IT 3%) tax on corporate profits (IUE 25%)., Which must be filed annually up to 120 days after the end of his tenure at any authorized financial institution using the 500 forms and 605 v4 (Financial Statements in digital), near the Balance Sheet and Income Statement for your business.
Some companies also are subject to the payment of the Scheme Complementary Value Added Tax, Withholding Agents (RC-IVA) regarding Dependency Taxpayers, is the retention of the Employer the rate of 13% on the income and deductions allowed with prior preparation of the payroll tax bill with disclaimers submit their employees, in which it is determined whether the FISCO balance due, if it is filed in Form 110. if there were no tax withheld, does not need to provide this form to the financial institution.
It may also be registered in other taxes, depending on the category of your activity.
2. What additional obligations are?
His main duty is in the «Tax Statement», which is usually done on a monthly basis according to the last digit of the NIT (Numero de Identificación Tirbutaria), or by type of activity these statements are made quarterly, not to mention the annual return for the tax payable to 120 days after closure management.
Additionally, there are other obligations as displaying the sign «Demand Your Bill», preserve the form of enabling bills and certificate of registration to the National Register of Taxpayers.
3. What is a summons?
It is a written communication issued by the Tax Administration to notify taxpayers or liable for errors detected by the computerized filing system, filling and / or failure to file Affidavits of taxes.
May warrant the closing of the business or commercial premises and the resulting tax liability for payment of 100% of the tax, fines, interest and penalties. These might be avoided with proper advice.
4. When tax problems arise?
There are three types of Tax Problem:
- Tax Violations
- Tax crimes.
- Fraud.
A violation is a violation to formal tax provisions and are subject to sanctions examples of these behaviors are: evasion, blackberry and failure to formal duties.
A tax Crime refers to behaviors fraud and public incitement to not pay taxes, and the same legal sanctions for those who do not pay taxes, and these are precautionary measures as monetary fines, forfeitures, roots, closing suspension or dismissal from public office, loss of concessions, privileges and prerogatives.
The Fraud is all pretense, concealment, deception, misleading the Treasury, which proves to himself or a third party, a lower payment of the tax. Examples of these behaviors are: declare numbers or false, deliberately omit circumstances that influence the determination of tax liability, produce and market goods illegally taxed, no tax issue notes, misuse seals, stamps, seals and other control , concealment, forgery or false indication of origin of goods.
5. Benefit from certain tax advantages.
The tax, by law benefits to certain types of taxpayers and are required to pay taxes on exports, giving the benefit of Certified Tax Return (CEDEIM) by which to return to the tax paid by exporters in the country.
To benefit from the tax refund CEDEIM, exports only requires dealing with traditional or non-traditional products, but of national origin.
There are other benefits as accounting order «taxpayer credit balances», «tax breaks», «Benefits Tax Free Zones», among others, which may be useful in the management accounting of your company or business.
6. If international trade is known international taxation.
Taxation on international trade context, is global taxation measures which are applicable to contracts between persons having their place of business in different places or states, that even applies to the so-called e-commerce.
Your good knowledge and analysis will settle what should be the taxation of such operations performed in a crime. And the possibility of being forced to double taxation if you do not have appropriate counseling.
7. Perform tax planning.
The tax issues should be handled through planning that considers: highs and lows of NIT, tax payments, compliance with formal duties, defense in case of audits, post views, Resolutions determinative, CEDEIM back, third party financing versus equity, tax issues in business reorganization among others, issues that can be taken with proper accounting legal advice.
Online course for new Newton and Newton Specific
For those who want to declare their basic forms VAT, IT, VAT and Withholding tax RCA purchases without an invoice, we developed a methodology based on the practical basis of MASI card activation in the Virtual Office, taxes payable, prepared statements sworn, update balances, and sending digital files. Everything from a comprehensive array allows faster and more efficient process.
To view course details press on the image:
If you need tax or accounting assistance for doing business in Bolivia, we speak English and can cooperate with you online.
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Socio y fundador de boliviaimpuestos.com. Autor de artículos tributarios, investigador y consultor.
Especializado en la asesoría, planificación y defensa compleja en materia tributaria.
