Fines for non-compliance with tax obligations in Bolivia

January 14, 2021

Tax infractions in Bolivia are called unlawful tax acts constituting actions or omissions that contravene the different tax regulations, whether material or formal, typified in the Tax Code thereof or general tax law and other regulations on the same subject.

According to Article 148 of the Code, these unlawful acts can be classified into contraventions and crimes.

This article explains the main aspects of the contraventions and the tax penalties entailed therein.

What types of tax infractions or contraventions exist in Bolivia?

According to Article 160 of the Bolivian Tax Code, the following are considered contraventions subject to a tax sanction by the Tax Administration:

  • The omission of registration in the tax records.
  • Failure to issue payment vouchers, such as invoices, tax notes, or any other equivalent document.
  • When there is an omission in the payment of a tax.
  • Smuggling as per the last paragraph of article 181.
  • Non-compliance with the formal duties imposed.
  • Those typified in special laws.

What are the types of tax penalties for contraventions?

According to Article 161 of the Tax Code, there are 6 types of tax penalties for infringements, and these are the following:

  • Fine.
  • Closure.
  • Loss of concessions or tax benefits.
  • Prohibition to contract with the State.
  • Definitive confiscation of merchandise.
  • Temporary suspension of activities.

In case of the contraventions mentioned in the previous paragraph, the following penalties are applicable, which may be serious or very serious:

Non-compliance with Formal Duties (Art.162 CT)

The infraction for those not complying with the formal duties indicated in the tax regulations will be sanctioned with a tax fine ranging from 50 UFV (Unidades de Fomento de Vivienda – Housing Promotion Units) to 5000 UFV.

Omission of Inscription in the Tax Records (Art.163 CT)

Taxpayers who are not registered in the tax records or are registered in a different tax regime will be sanctioned with the closing of their establishment and fined 2,500 UFV.

Non-issuance of Invoice, Tax Note, or Equivalent Document (Art.164 CT)

The taxpayer will be sanctioned with the closing of the establishment for 6 continuous days with a maximum of 48 days, according to the recidivism thereof in the infraction.

Omission to Pay (Art.165 CT)

If the taxpayer by action or omission does not pay, underpay the tax debt, or does not make withholdings or obtain benefits, the penalty will be 100% of the tax debt.

Contraventions in Customs Matters (Art.165 Ter)

These contraventions will be sanctioned with a fine ranging from 50 UFV to 5000 UFV and with a temporary suspension of activities from 10 to 90 days.

Can tax penalties be reduced?

Penalties for unlawful tax acts, including contraventions, may be reduced except for smuggling unlawful acts according to the following:

  • When the payment of the tax debt is made between the audit or notification of the Tax Administration and the resolution of determination or penalty thereof, the penalty will be reduced by 80% of this.
  • When the payment is made between the determination or penalty resolution and the filing of an appeal, the tax debt may be reduced by 60%.
  • When the tax debt is paid between the notification of the Regional Tax Superintendency’s Resolution and the filing of the appeal before the STN (Sistema de Transmisión Nacional – National Transmission System), it will be reduced by 40%.