{"id":11166,"date":"2026-03-10T17:06:32","date_gmt":"2026-03-10T17:06:32","guid":{"rendered":"https:\/\/rojas-lawfirm.com\/?p=11166"},"modified":"2026-03-10T17:10:04","modified_gmt":"2026-03-10T17:10:04","slug":"bolivia-introduces-tax-incentives-for-reinvestment-and-economic-reactivation-supreme-decree-no-5563-key-tax-measures-for-businesses","status":"publish","type":"post","link":"https:\/\/rojas-lawfirm.com\/en\/bolivia-introduces-tax-incentives-for-reinvestment-and-economic-reactivation-supreme-decree-no-5563-key-tax-measures-for-businesses\/","title":{"rendered":"Bolivia introduces tax incentives for reinvestment and economic reactivation Supreme Decree No. 5563 \u2013 Key tax measures for businesses"},"content":{"rendered":"

Bolivia introduces tax incentives for reinvestment and economic reactivation<\/u><\/strong><\/p>\n

Supreme Decree No. 5563 \u2013 Key tax measures for businesses<\/strong><\/p>\n

On 2 March 2026, the Bolivian Government enacted Supreme Decree No. 5563, introducing a set of tax measures aimed at encouraging reinvestment of profits, stimulating productive activity and supporting economic recovery.<\/p>\n

The decree regulates Article 10 of the 2025 General State Budget Law, as incorporated into the 2026 General State Budget, which establishes a tax exemption for shareholders or partners who reinvest profits generated in Bolivia.<\/p>\n

The regulation defines the conditions under which foreign shareholders or branches of foreign companies may benefit from reduced withholding rates under the Corporate Income Tax applicable to Beneficiaries Abroad (IUE-BE).<\/p>\n

Incentives for reinvestment of profits<\/strong><\/p>\n

Under the new framework, profits or dividends generated in Bolivia may benefit from reduced withholding tax rates if they are reinvested through capitalisation in the same company or branch.<\/p>\n

The applicable withholding rates depend on the level of reinvestment:<\/p>\n\n\n\n\n\n\n
Reinvestment level<\/strong><\/td>\nWithholding on non-reinvested profits<\/strong><\/td>\n<\/tr>\n
75% or more<\/td>\n3.13%<\/td>\n<\/tr>\n
50% \u2013 74.99%<\/td>\n6.25%<\/td>\n<\/tr>\n
25% \u2013 49.99%<\/td>\n11.25%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

To qualify for the incentive, the reinvested profits must be allocated to activities such as:<\/p>\n

    \n
  • acquisition of fixed assets<\/li>\n
  • working capital and inventories<\/li>\n
  • expansion, diversification or modernisation of operations.<\/li>\n<\/ul>\n

    These investments must be linked to the economic activity of the company operating in Bolivia.<\/p>\n

    Accelerated depreciation for investments in 2026<\/strong><\/p>\n

    As part of a broader economic stimulus package, the decree introduces a temporary accelerated depreciation regime.<\/p>\n

    Assets acquired between 1 January and 31 December 2026 may be depreciated over half of the standard useful life established under the Corporate Income Tax regulations.<\/p>\n

    This measure allows companies to recognise depreciation expenses more rapidly, potentially reducing taxable income in the short term and improving cash flow.<\/p>\n

    The regime does not apply to mining and hydrocarbons extractive companies, which remain subject to sector-specific regulations.<\/p>\n

    Adjustments to excise tax and deductibility rules<\/strong><\/p>\n

    The decree also introduces several tax adjustments affecting specific sectors.<\/p>\n

    Among them:<\/p>\n

      \n
    • modifications to the Excise Tax (ICE) rates applicable to alcoholic and non-alcoholic beverages;<\/li>\n
    • temporary adjustments to ICE applicable to certain diesel-powered vehicles;<\/li>\n
    • expanded deductibility rules for certain expenses incurred by independent professionals.<\/li>\n<\/ul>\n

      These measures form part of a broader fiscal policy effort to stimulate consumption, investment and economic activity.<\/p>\n

      Practical implications for businesses<\/strong><\/p>\n

      Although framed primarily as an investment incentive, the decree may have several implications for companies operating in Bolivia:<\/p>\n

      Investment planning<\/strong><\/p>\n

      Companies may reassess dividend distribution strategies in light of the reinvestment incentives.<\/p>\n

      Tax optimisation<\/strong><\/p>\n

      Accelerated depreciation may improve short-term tax efficiency for capital-intensive projects.<\/p>\n

      Corporate structuring<\/strong><\/p>\n

      Foreign investors may consider capitalisation strategies to benefit from reduced withholding rates.<\/p>\n

      Sector-specific impact<\/strong><\/p>\n

      Companies in the beverage, automotive and professional services sectors may need to review the new tax parameters introduced by the decree.<\/p>\n

      Strategic perspective<\/strong><\/p>\n

      Supreme Decree No. 5563 reflects the Government\u2019s intention to promote reinvestment of profits and strengthen domestic productive capacity.<\/p>\n

      By linking tax benefits to the capitalisation of profits and the acquisition of productive assets, the regulation seeks to channel corporate earnings toward investment rather than distribution abroad.<\/p>\n

      For companies operating in Bolivia, the new framework presents both tax planning opportunities and compliance considerations, particularly regarding the structuring of reinvestment strategies and the application of accelerated depreciation rules.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Bolivia introduces tax incentives for reinvestment and economic reactivation Supreme Decree No. 5563 \u2013 Key tax measures for businesses On 2 March 2026, the Bolivian Government enacted Supreme Decree No. 5563, introducing a set of tax measures aimed at encouraging reinvestment of profits, stimulating productive activity and supporting economic recovery. The decree regulates Article 10 […]<\/p>\n","protected":false},"author":21,"featured_media":11158,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"0","ocean_second_sidebar":"0","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"0","ocean_custom_header_template":"0","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"0","ocean_menu_typo_font_family":"0","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"0","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[36],"tags":[],"class_list":["post-11166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","entry","has-media"],"acf":[],"_links":{"self":[{"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/posts\/11166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/comments?post=11166"}],"version-history":[{"count":1,"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/posts\/11166\/revisions"}],"predecessor-version":[{"id":11167,"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/posts\/11166\/revisions\/11167"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/media\/11158"}],"wp:attachment":[{"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/media?parent=11166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/categories?post=11166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rojas-lawfirm.com\/en\/wp-json\/wp\/v2\/tags?post=11166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}