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BOLIVIA – INVESTMENTS
Promoting Investments, Advantages of Investing in Bolivia
Bolivia offers investors the following advantages:
It has a democratic, representative system, with a stable political and economic system.
Economy has shown sustained growth.
Over the last 15 years, the rate of inflation is amongst the lowest in Latin America..
Bolivia is a member of the Latin American Association for Integration (ALADI), the Andean Community (CAN), and an associate member of the Southern Common Market (MERCOSUR). This implies access to a potential market of over 270 million people.
It is a member of the World Trade Organization (WTO)..
It has preferential access to American and European markets, with “most favored” country status through the Law of Preferential Customs Fees for Andean Countries (LPAA), and the Generalized Preference System (SGP)..
Foreign investors have the same rights, duties, and guarantees as the national investors, besides having the right to ownership.
A system of free exchange is guaranteed, there are no restrictions for capital to enter or leave, or for remitting dividends, interest, and royalties overseas for transfer of technology and/or other commercial concepts.
Freedom of production, sales, imports, and exports of goods and services, as well as the free determination of prices, are guaranteed.
Exporters of goods and services recover their internal taxes and the tariffs paid on supplies and goods incorporated into the merchandise to be exported.
Bolivia has a simple, attractive tax system.
Through reciprocal international agreements with many countries, income tax payment in Bolivia avoids double taxation overseas.
The most important taxes are:
VAT – Value Added Tax (13%)..
TT – Transaction Tax (3%, non-deductible)..
PT – Tax on Profits (25%, payable yearly)..
INVESTMENT LAW
The framework Law for private investments in Bolivia is the Investment Law. The objective of the Law is to encourage and guarantee national and foreign investments, promote Bolivia’s growth and social and economic development through a system that governs both national and foreign investments. The following are some outstanding points of the Law:
It guarantees the same treatment – the same rights, obligations, and guarantees – to national and foreign investors. Also, private investments do not require any prior authorization or registration before any kind of entity.
It guarantees the right to ownership without any limitations, except for those that are stipulated in the Constitution and/or laws.
There are no restrictions on capital entering or leaving the country, or on overseas remittances of dividends, interest, and royalties.
It guarantees free money exchange and the faculty to carry out all kinds of operations in local or foreign currencies.
It guarantees freedom to contract investment insurance in the country of overseas
It guarantees freedom to import and export goods and services.
It guarantees the freedom to determine prices and the freedom to produce and sell goods and services
It guarantees the freedom to submit contractual differences to arbitral tribunals.
It guarantees the freedom to negotiate and establish salaries and labor benefits between the parties (employers and workers.
It guarantees the freedom to make joint investments between national and foreign investors, under joint ventures.
There are industrial free zones oriented towards exports, commercial free zones, and storage terminals, as well as a temporary entrance system for exports, with the faculty to function under a customs and fiscal segregation system, with tax and tariff exemptions
CONTACT
Tel: (591) 708-39166
Fax: (591-3) 339-73-66
Santa Cruz de la Sierra – Bolivia |
