Employer Tax Contributions

Tax Type	Rate	Base
Social Security (Health)	10%	Gross Salary
Social Security (Pensions/AFPs)	4.71% - 7.51% (varies by sector)	Gross Salary
National Housing Fund (FONVIS)	2%	Gross Salary
Professional Risk Insurance	1.71% (approx., varies by industry)	Gross Salary

Filing & Compliance

• Monthly declarations for RC-IVA due by the 13th to 22nd of the following month, based on Tax Identification Number (NIT).
• Social security contributions paid monthly to respective administrators (CNS, AFPs, FONVIS).
• Employers must file monthly declarations through the SIN's SIAT en Línea platform.

In Bolivia, employers are responsible for deducting various taxes from employee salaries, including income tax and social security contributions. These deductions are submitted to the relevant Bolivian tax authorities.

Income Tax (Impuesto sobre las Utilidades de las Empresas - IUE)

Bolivian income tax, also known as RC-IVA (Régimen Complementario al Impuesto al Valor Agregado), is a flat rate of 13% of an employee's gross taxable income. As of 2025, there is no tax-exempt bracket or personal allowance. Employers withhold this tax and remit it to the National Tax Service (Servicio de Impuestos Nacionales - SIN). The tax period is quarterly, ending on March 31st, June 30th, September 30th, and December 31st.

Social Security Contributions

Employees earning above BOB 13,000 contribute to social security through several channels:

• Long-term Social Security (Disability, Old Age, and Death): 10% of gross salary

• Common Risk (Riesgo Común): 1.71% of gross salary

• Pension Fund Commission (Comisión de las AFPs): 0.5% of gross salary

• Solidarity Contribution for Pensions (Aporte Solidario): 0.50% of the gross salary. This contribution may also take the form of tiered rates for those making above Bs 13,000 as follows:

  • 1% for monthly earnings between Bs 13,000 and Bs 24,999
  • 5% for monthly earnings between Bs 25,000 and Bs 34,999
  • 10% for monthly earnings above Bs 35,000

• There is a cap of 60 times the national minimum wage on contributions for long-term, common risk, and pension fund contributions.

Employer Contributions

Employers also contribute to social security on behalf of their employees:

• Housing Fund (Fondo de Vivienda): 2% of the employee's gross salary
• Risk Premium (Prima de Riesgo Profesional): 1.71% of the employee's gross salary
• Healthcare (Caja Nacional de Salud): 10% of the employee's gross salary
• Solidarity Contribution (Aporte Solidario): 3% of the employee's gross salary.

Aguinaldo (13th-month Salary)

Employees are entitled to a 13th-month salary (Aguinaldo) paid in December. This payment is exempt from both income tax and social security contributions. There may also be a mandatory 14th-month salary if certain economic conditions are met, such as the national GDP exceeding 4.5%.

Deductions

While employees cannot deduct general expenses for income tax purposes, they can deduct their social security contributions and utilize VAT credits for personal consumption.

Other Considerations

• It is crucial for employers to register with the relevant tax authorities and adhere to all reporting and payment deadlines to avoid penalties.
• As tax laws and regulations can change, this information is based on the understanding of Bolivian tax regulations as of February 5, 2025. It is advisable to consult official sources or a qualified tax advisor for the most up-to-date information.