Bolivia's National Tax Service has launched a sweeping tax relief programme under Law No. 1733, offering automatic debt forgiveness for pre-2018 liabilities and a 120-day regularisation window for obligations through 2025, alongside structural reforms to audit timelines, VAT invoicing rules, and the scope of gambling taxes.
Bolivia’s National Tax Service (NTS) has announced the implementation of Law No. 1733 of 27 May 2026, which introduces a tax relief programme to help taxpayers settle outstanding historical tax liabilities through automatic full debt forgiveness and tax regularisation measures.
The law mandates the extraordinary pardon of tax debts and fines incurred prior to 2018 for most taxpayers, while also offering a specific amnesty for the year 2020. Individuals with more recent liabilities from 2018 through 2025 are granted a 120-day window to settle their obligations with significant reductions in interest and penalties. Beyond immediate relief, the statute introduces structural reforms to the Tax Code, notably shortening the statute of limitations for government audits and collections to four years.
The key measures are as follows:
Automatic full forgiveness
The law establishes an extraordinary, one-time forgiveness of tax debts, as well as fines for tax and customs offences, under the following conditions:
- Periods before January 2018: Full forgiveness is granted for tax debts and fines corresponding to fiscal periods before January 2018. This includes debts currently in administrative or judicial challenge, as well as those in the tax execution or coercive collection stage, provided they have not yet reached the point of asset disposal or auction.
- Exclusion for large debts: This forgiveness does not apply to taxpayers whose accumulated omitted tax as of 31 December 2017 was equal to or exceeded BOB 10,000,000.
- 2020 fiscal year: Full forgiveness is also granted for tax debts and fines specifically for the 2020 fiscal year (associated with the COVID-19 pandemic), regardless of the amount of the omitted tax.
Tax regularisation (2018ā2025)
For outstanding debts from fiscal periods starting 1 January 2018 through 31 December 2025 (excluding the already forgiven 2020 period), taxpayers have a 120-day window from the law’s effective date (27 May 2026) to settle their accounts. This period may be extended by the Executive Branch until 31 December 2026.
The two primary regularisation options are:
- Cash payment: Taxpayers can pay the omitted tax with a 50% reduction in value maintenance. Under this option, the remaining value maintenance, all interest, and all fines (including those for tax fraud or failure to fulfil formal duties) are fully forgiven.
- Payment plan: Taxpayers may opt for a payment plan of up to 36 monthly instalments. In this case, interest and fines are forgiven, but the omitted tax must be updated to the date the law was published.
Participation of large debtors
Taxpayers who were excluded from the automatic full forgiveness because their debt as of 31 December 2017 was equal to or greater than BOB 10,000,000 are explicitly permitted to take advantage of these regularisation options.
Additional forgiveness provisions
The law also provides specific forgiveness for those who have already paid their principal debt:
- Fines only: Taxpayers who, by 27 May 2026, have paid their omitted tax and interest but still owe fines for tax or customs offences have those fines fully forgiven.
- Contraband and formal duties: Fines for contraband offences committed up to 31 December 2025, and various fines for non-compliance with formal duties (not linked to determination processes) are also forgiven.
Beyond the forgiveness and regularisation measures, Law No. 1733 introduces significant structural changes to the Bolivian tax system, including adjustments to the statute of limitations, invoicing requirements, and the scope of gambling taxes.
Reduction in the statute of limitations
The law modifies the Bolivian Tax Code (Law No. 2492) to significantly reduce the timeframe in which the tax administration can take action against taxpayers.
- General rule (4 years): The powers of the Tax Administration to audit, investigate, determine tax debt, and impose administrative sanctions now prescribe in four (4) years. This same four-year period applies to the execution of determined tax debts.
- Extension for registration issues: This period is extended by two (2) additional years (for a total of six years) if a taxpayer fails to fulfil the obligation to register in the appropriate tax registries or registers in an incorrect tax regime.
- Execution of sanctions: The power to execute already imposed sanctions expires in two (2) years. The prescription period begins on 1st January of the calendar year following the year in which the tax obligation’s payment deadline occurred or the offence was committed.
VAT (IVA) invoicing requirements
The law amends Law No. 843 to change how VAT (IVA) is presented to consumers, establishing that the tax sits outside the net price of any sale, service, or taxable provision. As a result, businesses must show IVA as a separate line item on sales invoices rather than absorbing it into a single gross figure. The taxable base is defined as the net sales price ā the true value of the good or service before any tax is applied.
Business promotions and gambling tax
Law No. 1733 narrows the scope of the Lottery and Gambling Tax (Law No. 060) by repealing Article 7 and related provisions, effectively excluding standard business promotions from the Impuesto al Juego. The tax now applies specifically to games of chance and draws, simplifying compliance for companies running routine marketing campaigns.
Detailed eligibility for regularisation
The law specifically defines which taxpayers in which situations can access the regularisation options for the 2018ā2025 periods. These include those who:
- Are under audit: Taxpayers currently undergoing determination processes, even if they have already been issued a “Vista de Cargo” (charge sheet), a Determinative Resolution, or a Title of Tax Execution.
- Have unfiled or incorrect returns: Those who never presented their tax returns or those who presented incorrect ones and wish to rectify them.
- Are currently being audited: Those undergoing fiscalization or control processes that have not yet reached the “Vista de Cargo” stage.
- Have existing payment plans: Taxpayers with payment facilities already in progress or those who have defaulted on previous payment plans can regularise their remaining balances.
Forgiveness of specific fines
Beyond general relief, the law fully forgives fines for contraband offences and fines for non-compliance with formal duties ā provided the offences occurred by 31 December 2025. The latter applies only where the violation is not connected to an active debt determination process.
Consequences of default
If a taxpayer fails to fulfil the requirements of their new payment plan, they lose all benefits granted by the law. The remaining debt will then be recalculated using the standard interest and penalty formulas found in the original Tax Code (Article 47 of Law NĀ° 2492).
While most of the law is effective immediately, the new VAT invoicing requirement (separating the tax from the net price) has a specific timeline. It will enter into force on the first day of the month following the publication of the regulatory Supreme Decree that governs its implementation.
