Extension for tax obligations filing of Corporate Income Tax

July 30, 2021

On July 28, 2021, the Servicio de Impuestos Nacionales – SIN (National Tax Service) of Bolivia has granted an extension for the tax obligations filing of theImpuesto sobre las Utilidades de las EmpresasIUE (Corporate Income Tax) for those taxpayers with fiscal year-end as of March 31, 2021.

1. What is the Corporate Income Tax (IUE)?

First, it is important to point out that profit is the interest, benefit, or result obtained from something associated with earnings achieved from a good or an investment.

En primer lugar, es importante señalar que la utilidad es el interés, beneficio o fruto que se obtiene de algo, el cual está asociado a la ganancia lograda a partir de un bien o una inversión.

Second, the amount of that profit is reflected in a company’s Financial Statements.

In this sense, the Corporate Income Tax (IUE) is applied throughout the country on the profits resulting from the Financial Statements (generated by the companies) at the end of each year.

This tax has a rate of 25% applied on the net taxable Profit obtained in the management, the difference between income, and expenses and presumed income.

2. Regulatory background

Pursuant to the powers granted to the Tax Administration by the Código Tributario Boliviano (Bolivian Tax Code, hereinafter, CTB), the Board of Directors issued a Normative Resolution No. 101800000004 regulating the form, means, and deadlines for the tax information filing related to the IUE.

Likewise, in the operational framework of compliance with IUE obligations, the Board of Directors issued Regulatory Resolution No. 10-0008-15, which regulated, among others, the requirements, deadlines, and penalties related to the information to be filed on transactions with related parties.

To contribute to the correct and timely compliance with the tax obligations of IUE taxpayers, the SIN provides for the extension of the filing of the tax obligations of the Corporate Income Tax by virtue of the power granted by numeral 7 of article 66 of the CTB.

3. Extension

Therefore, through the sole article of the Normative Resolution of the Board of Directors No. 102100000009, the SIN provides for the following extension:

“It is extended until August 31, 2021, the deadline for the Financial Statements filing (physical and/or digital sending), Annual Report, External Audit Opinion, Tax Opinion, Minimum Tax Procedures Report, Complementary Tax Information and/or Transfer Pricing Study, as well as the information submitted through electronic forms 605 and 601, as applicable, for taxpayers or third parties responsible for the Corporate Income Tax (IUE) with fiscal management closing as of March 31, 2021.”

4. Validity

This resolution is effective as of July 28, 2021.

Source: Impuestos Gob. 30/07/21