January 1, 2023, 12:32 PM
January 1, 2023, 12:32 PM
As of today, Sunday, January 1, 2023, Law 1448 on Tax Modifications is in force, after the approval of Decree 4850 that regulates this norm. One aspect to highlight is that independent professionals they are reached by 13% of the Complementary Regime of the Value Added Tax (RC VAT) and no longer by the 25% of the Tax on the Profits of Companies (IUE).
“It is necessary to adapt the RC-VAT, for compliance with the tax obligations of natural persons who receive income from the exercise of the profession or trades freely or independently, as well as people not domiciled in the Plurinational State of Bolivia for their Bolivian source income”, cites Decree 4850, approved on December 28.
According to an analysis by the Moreno Baldivieso legal firm, the new form of declaration as of this month are: income from the exercise of the profession or trade freely or independently, minus the VAT tax debit and minus the social security contributions actually paid.
In addition, the liquidation will not be made annually, but quarterly.
Decree 4850 also “extends the power to withhold RC-VAT to sole proprietorships when they pay natural persons and undivided estates for rent, directors’ and trustees’ feeshabitual income not subject to the IUE, income from the exercise of the profession or trades freely or independently and the fees, remuneration or income from payments, whatever their denomination, of persons not domiciled in the Plurinational State of Bolivia, coming from the work developed in national territory”, explains the law firm.
They are not affected by this tax income of athletes and artists, not domiciled, for work in contest activities, competition or international tournaments.
Last July, after the promulgation of Law 1448, the Ministry of Economy and Public Finance reported that one of the modifications introduced by the norm puts taxpayers who exercise their profession or trade independently “on equal footing”so that they are covered by the RC-VAT as any natural person and not by the Corporate Income Tax (IUE), as was the case before Law 1448.
