Bolivia's personal income tax is unique: a flat 13% rate on employment income, linked to the VAT system. Employees can reduce their tax by presenting consumer invoices (facturas) from purchases. This is called the "RC-IVA" regime. Social security contributions are also deducted.
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📌 RC-IVA 2026 — Unique Invoice Deduction System:Flat rate 13% on employment income (salary + bonuses). Invoice deduction: Employees can present consumer invoices (facturas con NIT) for goods/services to reduce their taxable base. The IVA credit from invoices (13% of invoice value) is deducted from the 13% income tax. This creates a unique incentive to request receipts. CNS contributions (12.71%) are deducted before calculating RC-IVA. 13th salary (Aguinaldo): Mandatory Christmas bonus. 14th salary (Bono de Antigüedad): Seniority bonus based on years of service. Prima vacacional: Vacation bonus. Non-residents: 12.5% withholding on Bolivian-source income (1.5%-4% for partial operations).
📊 Bolivia Tax Rates Overview 2026
Tax Type
Rate
Details
RC-IVA (Personal)
13%
Flat rate on employment income
CNS Employee
12.71%
Social security total
CNS Employer
17.21%
Social security total
IVA (Standard)
13%
Most goods & services
IT (Transaction)
3%
Gross revenue tax
IUE (Corporate)
25%
Net profit (general)
IUE (Large cos.)
28%
Revenue > Bs 5M
IUE (SME)
20%
Revenue < Bs 2M
ITF (Financial)
0.3%
Bank transactions
ICE (Excise)
5-60%
Luxury, alcohol, tobacco
IDH (Hydrocarbons)
13%
Oil & gas production
Profit Remittance
12.5%
Profits sent abroad
Municipal (IT municipal)
3%
Municipal transaction tax
📌 Bolivia's Unique Tax Structure:
Bolivia has a distinctive tax system shaped by its socialist-oriented economic model. Key features: RC-IVA (13%): Personal income tax is essentially a complement to VAT — employees pay 13% on salaries but can deduct IVA credits from consumer invoices. IT (3%): Transaction tax on gross revenue, similar to a gross receipts tax. It's considered a prepayment of corporate income tax (IUE). IUE (25%): Corporate income tax on net profit, with IT payments credited against it. IDH (13%): Direct tax on hydrocarbons — unique to Bolivia, reflecting its large natural gas reserves. Fixed exchange rate: Bolivia has maintained a relatively stable exchange rate (Bs 6.91 = USD 1) since 2011, though parallel market rates differ significantly.
👥 CNS Calculator (Caja Nacional de Salud)
Bolivian social security via CNS (Caja Nacional de Salud) and AFPs (pension funds). Employee total: ~12.71%. Employer total: ~17.21%. Combined: ~29.92%.
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📌 CNS 2026:Employee (~12.71%): Short-term insurance (health, maternity) 4.81% + Long-term insurance (pension via AFP) 4.81% + Solidarity fund 0.5% + Professional risk 2.59% (employer pays, but shown in total). Note: Employee's direct deduction is ~10.12% (short-term 4.81% + long-term 4.81% + solidarity 0.5%). Employer (~17.21%): Short-term 4.81% + Long-term 7.1% + Professional risk 2.59% + Solidarity 1.5% + Housing fund 1.21%. Aguinaldo (13th salary): Mandatory Christmas bonus — one full monthly salary, paid in December. Prima vacacional: Vacation bonus equal to one monthly salary. Bono de Antigüedad: Seniority bonus — 5% (2yr) to 85% (25yr+) of base salary. Licencia por maternidad: 14 weeks paid leave (prenatal + postnatal).
🧾 IVA + IT Calculator
Bolivian VAT: 13% (standard). Plus unique IT (Impuesto a las Transacciones): 3% on gross revenue — a prepayment of corporate income tax.
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📌 IVA + IT 2026:IVA (13%): Most goods & services. Note: Bolivian IVA is a price-inclusive tax (价内税), unlike most countries where it's added on top. The 13% is calculated within the final price. 0% (Exempt): Exports, basic unprocessed food, medical services, education, residential rent. IT (3%): Impuesto a las Transacciones — tax on ALL gross revenue from economic activities. It's a prepayment of IUE (corporate income tax). Monthly filing. ICE (Impuesto a Consumos Especiales): Excise tax — alcohol (20-60%), tobacco (40-60%), vehicles (varies), fuel, luxury goods. ITF (0.3%): Impuesto a las Transacciones Financieras — tax on bank deposits and foreign currency exchanges.
🏢 IUE (Impuesto Único a las Empresas)
Corporate income tax: 25% (general) / 28% (large companies) / 20% (SMEs). IT (3%) payments are credited against IUE. Plus IDH hydrocarbons tax and profit remittance tax.
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🏠 IDH + IT + Remittance Tax
Hydrocarbons tax (IDH): 13%. IT gross revenue tax: 3%. Profit remittance abroad: 12.5%. Property tax varies by municipality.
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📌 Corporate & Other Tax Notes:IUE (25%/28%/20%): Corporate income tax on net profit. IT payments (3% of gross revenue) are credited against IUE. Loss carry-forward: up to 5 years. IDH (13%): Impuesto Directo a los Hidrocarburos — unique to Bolivia, applied to hydrocarbon production value. Replaced the former royalty system in 2005. IT (3%): Monthly tax on gross revenue from all economic activities. Considered a prepayment of IUE. Profit remittance (12.5%): Tax on profits sent abroad by foreign companies. Partial operations: 1.5%-4%. SET (Servicio de Impuestos Nacionales): National tax authority. Electronic invoicing mandatory since 2025. Municipal taxes: 3% transaction tax + property tax.