Bolivia's tax authority will automatically forgive debts for 252,000 taxpayers under Law 1733 from 25 June 2026, eliminating principal, fines and interest accrued through 31 December 2017 and fiscal year 2020, with no paperwork required. A separate regularisation programme offers flexible payment terms for remaining obligations.
Bolivia is rolling out an unprecedented tax relief programme under Law 1733, with automatic debt forgiveness requiring no paperwork or office visits.
The National Tax Service (SIN) announced on 16 June 2026 that 252,000 taxpayers will have debts eliminated outright—including principal, penalties, interest and surcharges—for obligations accrued through 31 December 2017 and for 2020 (pandemic relief).
The move targets overwhelmingly small and medium enterprises, which account for 99.17% of beneficiaries.
How the tax debt forgiveness works
Starting 25 June 2026, the SIN will process forgiven debts through its computer systems, allowing taxpayers to check their status online without visiting tax offices. This differs sharply from previous “forgiveness” schemes, which only waived ancillary charges and left the underlying tax intact.
Regularisation and payment options
For remaining tax periods (2018–2019, 2021–2025), Law 1733 introduces a regularisation mechanism available from 25 June onwards. Roughly 173,000 taxpayers are expected to use it. The programme eliminates 100% of fines, penalties and property value adjustments on unpaid taxes. Those settling in a lump sum receive an additional 50% discount on property adjustments. Flexible payment plans extend up to 36 months for those unable to pay immediately.
Structural reforms
The law also shortens the tax audit window from eight years to four, improves invoice clarity by itemising VAT separately (yielding a technical 2% consumer saving), and permanently abolishes the Gaming Authority’s tax on retail promotions, intended to stimulate commerce.
