This article provides a focused overview of the corporate tax regime for companies operating in Bolivia as of 2025. Key features, specific regimes for certain sectors, and practical tax considerations are summarized below to support informed decision-making.
Overview of Corporate Taxation in Bolivia
The Bolivian corporate income tax (CIT) system applies a flat-rate approach. Companies are taxed on profits earned within Bolivia at a standard rate, with specific surtaxes targeting particular industries. The official currency for tax assessments is the Bolivian Boliviano (BOB).
Flat Corporate Income Tax Rate
For the 2025 tax year, the primary corporate tax rate in Bolivia is charged at a flat 25%. This applies broadly to resident companies on profits considered of Bolivian source.
| Tax Type | Rate (%) | Basis | Currency (BOB) |
|---|---|---|---|
| Standard Corporate Income Tax | 25% | Corporate profits | BOB |
Surtaxes for Specific Sectors
Bolivia imposes sector-specific surtaxes, mainly on financial institutions and companies engaged in extractive activities relating to non-renewable natural resources. Further surtaxes apply within the mining sector, depending on the company’s area of operation. Below is a table summarizing all applicable surtaxes in 2025.
| Surtax Description | Rate (%) | Application Condition | Currency (BOB) |
|---|---|---|---|
| Financial sector and insurance/reinsurance sector | 25% | Return on equity index > 6% (excluding development banks) | BOB |
| Extractive industries (mining, oil/gas) | 25% | Non-renewable resource extraction activities | BOB |
| Mining (exploitation activities) | 12.5% | Taxable net profits, in addition to CIT and extractive surtax | BOB |
| Mining (manufacturing activities with value-added processing) | 7.5% | Taxable net profits, in addition to CIT and extractive surtax | BOB |
Where applicable, surtaxes are applied in addition to the standard corporate income tax. For example, a mining company active in exploitation (not just value-added processing) will face the 25% standard CIT, 25% extractive surtax, and potentially the 12.5% mining-specific surtax—leading to a significantly higher effective tax rate on profits.
Basis of Assessment and Currency
Corporate tax in Bolivia is assessed on net corporate profits, as determined under Bolivian tax rules. The assessment basis does not reference specific holding periods; accordingly, there is no preferential tax treatment for long-term or short-term gains at the corporate level in the published data.
Sector Highlights
- Financial institutions (excluding development banks) and all insurance/reinsurance companies face an extra 25% surtax if their annual return on equity index exceeds 6%.
- All non-renewable extractive activities—including mining, oil, and gas—are subject to an additional 25% surtax on top of the general CIT.
- Within mining, distinction is made between companies involved in exploitation (resource extraction) and those adding value (manufacturing). Additional surtaxes of 12.5% and 7.5%, respectively, are applied to each segment’s net profits.
Pro Tips for Navigating Bolivian Corporate Taxes in 2025
- Review your sector: Entities in finance or extractives should carefully assess whether specific surtaxes apply, as effective rates can be much higher than the standard 25%.
- Plan for cumulative tax rates: In mining, several layers of surtax may be imposed in addition to CIT. Conduct modeling to understand the full impact before finalizing business projections.
- Maintain detailed records: Accurate calculation of taxable profits is key, given sector-specific rules and potential for combined tax rates. Proper documentation will support compliance under BO’s corporate regime.
- Monitor sector definitions: The line between value-added manufacturing in mining versus resource extraction determines which (if any) additional surtaxes your business may face. Clarify this with local advisors when setting up your operations.
Official Resources
For the most recent updates and official regulations, always refer to the Bolivian National Tax Service main website.
Bolivia’s flat 25% corporate tax rate is straightforward for most businesses, but companies in finance and resource extraction should pay close attention to the cumulative effect of surtaxes, which can dramatically increase the overall tax burden. Careful sector analysis and documentation are crucial to ensure compliance with the 2025 tax requirements.