Fines for non-compliance with tax obligations in Bolivia

The tax infractions in Bolivia are called tax illegality and constitute actions or omissions that contravene the various tax rules whether material or formal, which are classified in the Tax Code of that country or general tax law and other rules on the same subject.

According to article 148 of the Code, these illicit acts may be classified as contraventions and crimes.

The purpose of this article is to inform about the main aspects of the contraventions and the tax sanctions that these entail.

What type 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 the inscription in the tax registers.
• Failure to issue proof of payment, such as an invoice, tax bill or other equivalent document.
• The omission of the payment of a tax.
• Contraband according to the last paragraph of Article 181.
• Failure to comply 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 up to 6 types of tax penalties for contravening conduct and these are as follows:

• Fine.
• Closing.
• Loss of tax concessions or benefits.
• Prohibition to contract with the State.
• Permanent confiscation of goods.
• Temporary suspension of activities.

In case of the contraventions indicated in the previous paragraph, the following sanctions are applied, which may be serious or very serious:

Breach of Formal Duties (Art.162 CT)

The infraction for those who do not comply with the formal duties set forth in the tax regulations will be sanctioned with a tax fine ranging from 50 Unidades de Fomento de Vivienda (hereinafter, UFV) to 5000 UFV.

Omission of Registration in the Tax Registries (Art.163 CT)

For those taxpayers who are not registered in the tax registries or who register in a different tax regime, there will be a penalty of closing their establishment, as well as a fine of 2,500 UFV.

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

For this contravention, the taxpayer will be sanctioned with the closure of the establishment for 6 continuous days with a maximum of 48 days, according to the repetition of the taxpayer’s infraction.

Omission of Payment (Art.165 CT)

In case the taxpayer by action or omission does not pay or pays in lesser amount the tax debt, or does not make the withholdings or obtain benefits, it will be sanctioned with 100% of the tax debt.

Contraventions in Customs Matters (Art.165 Ter)

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

Can tax penalties be reduced?

Sanctions for tax illegality, among which contraventions, can be reduced except for smuggling illegality according to the following:

• When the payment of the tax debt is made after the inspection or notification of the Tax Administration has begun but before the resolution of the determination or sanction of the same, the sanction will be reduced by 80% of the same.
• When the payment is made after the determination or sanction resolution, but before the filing of an appeal, the tax debt may be sanctioned by 60%.
• When the tax debt is paid after notification of the Resolution of the Regional Tax Superintendence and before the filing of the appeal before the STN, it will be reduced by 40%.