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Tax incentives applicable to industrial sectors

Tax incentives applicable to industrial sectors

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Through Supreme Decree No. 4579, the Executive Office of the Bolivian Government regulated Law No. 1391 of August 31, 2021, establishing tax incentives for the agricultural, industrial, construction, and mining sectors.

1. Import Tax Exemption

The regulation states that in compliance with the provisions of Article 2 of Law No. 1391, the import of capital goods, industrial plants, high volume and tonnage capacity freight vehicles for the agricultural and industrial sectors, including refrigerated vehicles, and heavy machinery for the construction and mining sectors will be exempted from the payment of the Value Added Tax (VAT).

Likewise, industrial plants, new or used not older than ten (10) years, shall be considered functional units, including their peripheral systems forming an integral part for the productive operation of the plant at the time of customs clearance for consumption.

It should be noted that the age of the used industrial plants shall be accredited through an Affidavit signed by the importer, according to the format established by the National Customs.

2. Age of the goods

In specific terms, according to the provisions of Article 5 of Law No. 1391, the age for the importation of:

  1. Capital goods for the industrial and agricultural sectors, shall be less than or equal to ten (10) years.
    • In the case of refrigerated vehicles and freight vehicles of high capacity in volume and tonnage for the industrial and agricultural sectors, the age will be five (5) years. If a change in the structural characteristics of the imported refrigerated vehicle is verified, it will lose the benefit and must pay the import taxes, including fines and accessories.
  2. Heavy machinery for the construction and mining sector, shall be less or equal to ten (10) years.
    • The merchandise indicated in Paragraph I of this Article must file the documentation supporting its age. When this documentation is not available, the age shall be accredited through an Affidavit signed by the importer, according to the format established by the National Customs.

Separately, in the case of public institutions and companies where the central level of the State has absolute participation, capital goods, industrial plants and freight vehicles of high capacity in volume and tonnage, and heavy machinery may be imported within the framework of the provisions of Law No. 1391, as long as they are new goods (of the current or the following management) under the responsibility of the MAE (Máxima Autoridad Ejecutiva – Highest Executive Authority).

Source: La Gaceta 06/09/21

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