Investment Promotion Law

Original Language Title: LEY DE PROMOCIÓN DE INVERSIONES

Read the untranslated law here: http://www.gacetaoficialdebolivia.gob.bo/index.php/normas/verGratis_gob2/152131

Act No. 516 Act of April 4, 2014 EVO MORALES AYMA President constitutional of the PLURINATIONAL State of BOLIVIA, by how much, the plurinational Legislative Assembly, has sanctioned the following law the Assembly Legislative PLURINACIONAL, D E C R E T A: law of promotion of investments chapter I object and general article 1. (OBJECT). The object of this law is to establish the legal framework and institutional general for the promotion of investments in the plurinational State of Bolivia, in order to contribute to growth and economic and social development of the country, to live well.
This law is founded on the precepts laid down in the political Constitution of the State and its application and interpretation should conform to these.
Article 2. (SCOPE OF APPLICATION). This law applies to the Bolivian and foreign investments carried out in the territory of the plurinational State of Bolivia.
Article 3. (PRINCIPLES). Investments carried out in the country must conform to the following principles: sovereignty and dignity. The State leads the process of economic and social planning, runs the economy and exercises the control and direction of the strategic sectors established in the political Constitution of the State, within the framework of the economic and social planning in the country. He State, being promoter and protagonist of the development economic and social of the country, orients them investments in sectors strategic to activities economic that boost the development and contribute to the eradication of the poverty and to the reduction of inequalities economic, social and regional.

Change of the productive matrix. The State promotes the investment with sovereignty and dignity, the development of productive sectors in non-traditional economic activities that contribute to the change of the primary standard exporter and boost industrialization processes on a large scale.

Respect mutual and equity. The investment contributes to the implementation of the production economic model plural, where the State directs, controls, regulates and participates in the economic development of the country, interacting with investors in conditions of independence, mutual respect and equality, within the framework of the sovereignty and dignity of the State in a context of legal security.

Plural economy. Forms of State, private, social, cooperative and community economic organization comprising the plural economy, are articulated in the framework of the principles of complementarity, reciprocity, solidarity, redistribution, equality, legal security, sustainability, balance, justice and transparency. Investments carried out in the country contribute to the development of forms of economic organization.

Legal certainty. The legal relations of the State with Bolivian and foreign investors, as well as the legal relationship between investors acting on the forms of economic organization recognized in the political Constitution of the State, are based on certainty, subject to specific, precise and clear rules. All forms of economic organization shall enjoy legal equality before the law.

Mother Earth. Investments carried out in the country, must ensure the development of economic activity in harmony and balance with mother earth, ensuring the sustainability of biodiversity.

Simplicity. The State establishes procedures simple and short deadlines for processing and consolidation of the investment.

Prioritization. The State prioritize Bolivian investment over foreign investment as a mechanism for strengthening the national productive apparatus and supply of goods and services.

Transparency. Forms of economic organization established in the political Constitution of the State, as well as the Bolivian investment or foreign, are based essentially on transparency and fighting corruption.
Article 4. (DEFINITIONS). For the purposes of this law, shall mean: investment. All placement of contributions from investment in the different mechanisms of investment according to stated in this law, for the development of economic activities and the generation of revenues that will contribute to the growth and economic and social development of the country.
Investor. It is the natural or legal, Bolivian or foreign, public or private person that makes an investment in the plurinational State of Bolivia.

Bolivian investment. It is the investment of national origin by Bolivian natural or legal, public or private persons or foreign natural persons with permanent residence or definitive obligating in Bolivia. Bolivian legal persons are incorporated in Bolivia and whose majority of capital is owned by natural persons Bolivian, reflecting on the direction and control of the legal person. When the Bolivian investment with public resources and private resources national or foreign, shall be considered joint investment.

Preferential investment. Quality granted by the Ministry of development planning of investment projects that develop productive activities of strategic interest for the country, which are identified in the present law. This quality allows the investment to access specific incentives.

Productive state investment. It is a modality of Bolivian investment. Productive state investment is carried out within the framework of the country's economic and social development planning, is earmarked for productive activities classified as preferential investment, using public resources and has advantages laid down in this law.

Joint investment. It is a form of investment, comprised the productive state investment on the one hand, and national private investment or foreign on the other, in which the State maintains control and management of productive economic activity.

Investment foreign. It is the investment of foreign origin, of a private or public nature, carried out by natural persons or legal foreign or Bolivian natural persons resident abroad with one stay not less than two (2) years.

Transfer pricing. They are those resulting from transactions or transactions between related companies, whereas those made between the matrix, affiliates and/or subsidiaries or between branches or between subsidiaries, of which at least one is domiciled in the country; for payment of goods or services or other operations that may be different from the agreed between independent undertakings.

Legislation in force. Any legal rule issued by the national competent authority relating to the investment in the country, under the political Constitution of the State.

Incentives. They are benefits or temporary tax or financial advantages granted by the State, as well as promoting policies that encourage investment in the country, with the aim of contributing to economic and social development. Benefits or advantages concerned, may consist in reduction or tax exemption of tariff charges, granting of incentives for the production and others.

General incentives. They are those temporary incentives approved by express standard. Your application cannot create advantageous conditions to an investor or group of investors against others in the same sector.

Specific incentives. They are those incentives granted to preferential investment and which must be approved by express standard that established conditions, the scope and the timing of its application.
Chapter II treatment to investments article 5. (INVESTMENTS).
I. the State in its role as promoter and protagonist of the economic and social development of the country, through the Ministry of development planning and the head of sector ministries, directs investments towards economic activities that promote economic and social development, generating decent employment and contribute to the eradication of poverty and the reduction of economic inequalities social and regional.
II. the investment may be used for any economic sector of the country and will be implemented through business and contractual forms permitted by laws, noting the particularities referred to the exclusivity of the State and the principles of sovereignty and dignity, mutual respect and equity, and other principles set out in this law.
Article 6. (EXCLUSIVE OF THE STATE).
I. the State directs, controls and regulates the strategic sectors of the economy of the country established in the political Constitution of the State, through public institutions and the exercise of its powers and duties.
II. the State reserves the right to develop strategic sectors for the economic and social growth of the country with equity, and exercises its right to participate as an investor, through productive state investment, within the framework of the provisions of the present law.
III. investors can develop economic activities in strategic sectors, subject to the rights that the State grant for the effect in the framework of the rules and policies of the country's economic and social development.
Article 7. (INVESTMENT WITH SOCIAL COMMITMENT).

I. the investment made by the private sector, as well as their associations and activities, should contribute to the economic and social development, and strengthening the economic independence of the country, so the State recognizes it and respects.
II. all third-party action that harm the normal development of the investment activities, shall be liable to criminal and civil penalties as appropriate.

Article 8. (RELATIONS WITH MUTUAL RESPECT AND EQUITY). Emerging relationships between investors and the State investment, are subject to the principles of sovereignty and dignity, legal security, mutual respect and equality, established in article 3 of this law.
Article 9. (INVESTMENT MECHANISMS).
I contributions of investment placement is carried out through: commercial companies;

Businesses public;

Enterprises of mixed capital where the State has a majority shareholding;

Contracts or other instruments of joint investment.
II. all them mechanisms of investment referred in the paragraph earlier, must observe them precepts constitutional and hold is to the present law, to the code of trade and others regulations applicable and existing.
III. sectoral legislation will establish specific mechanisms to make the investment in your sector, preserving the interests and strategic objectives of the country; the sectoral regulations should be held to the regulations relating to the treatment of investments, productive state investment, incentives to investment, to the settlement of disputes and other provisions laid down in this law.
Article 10. (CONTRIBUTIONS OF INVESTMENT).
I all investor may make contributions of investment through: national or foreign currency of free convertibility;

Real and personal property on which there is property rights;

Reinvested earnings;

Rights of intellectual property, intangible technological contributions and other rights over intangible assets;

Acquisition of shares registered or listed in the Bolivian stock of companies operating in the country, in accordance with the applicable legislation;

Industrial plants, machines or equipment new or reconditioned, spares, parts and parts;

Commodity raw materials and intermediate products;

Others established by law.
II. the State makes contributions of investment mainly with rights of use and exploitation of natural resources, in the framework of the constitutional precepts.
Article 11. (CONDITIONS FOR INVESTMENT).
I. the investments made in the plurinational State of Bolivia should be considered: that the transfer of capital from abroad is channelled through the national financial system;

Foreign investments to comply with the regulations established in the country transfer pricing;

That the profitability of the investment proposals seeking to be qualified as preferred, is not conditioned to incentives granted by the State;
That the State does not endorse or guarantee of external or internal credit contracts concluded by natural or legal persons of private law, Bolivian or foreign;

That the transfer technology is carried out according to it established in the article 14 of the present law;

That labour relations arising from the effect of investments set out in the framework of this law, shall be subject to the General Labour Act and its regulations;

Which investments laid down in the framework of this law, shall be subject to the normative tax, customs, environmental and other legislation of the country that is applicable to you.
II. measures to encourage investment should respond to the objectives of economic policy and consider the fiscal sustainability of the country.
Article 12. (GRANNACIONALES).
I business Grannacionales will be formed by Bolivian State support and State contributions of countries members of the Bolivarian Alliance for the peoples of our America - Treaty of Commerce of the peoples ALBA-TCP.
II. the creation, administration, supervision, control and oversight, as well as the reorganization, dissolution and liquidation of the companies Grannacionales, are subject to law No. 466, public enterprise, December 26, 2013.
Article 13. (REGISTRATION OF FOREIGN INVESTMENT).
I. the Central Bank of Bolivia will be responsible for the registration of foreign investment and shall grant a certificate of income from contributions for investment in the plurinational State of Bolivia, which will accredit foreign resources entering the country.
II. the registry must be in specific formats that ensure the capture of information on the origin, destination, contributions and mechanisms of investment and reinvestment, according to the provisions of the present law.
III. the Central Bank of Bolivia will dictate the required standard for the implementation of the registry of foreign investment.
Article 14. (TECHNOLOGY TRANSFER).
I according to the needs of development of the productive sector, technology transfer must also see at least one of the following modalities: generation of capacities and skills in the Bolivian staff from technical institutes, technological institutes, technological colleges and universities of the multinational educational system, in the technical areas developed by the investment. The incorporation of the Bolivian staff must contemplate areas operational, administrative and Executive, noting policies of promotion linked to the skills and abilities acquired;

Transfer of machinery and team of avant-garde technological to institutes technical, institutes technological, schools upper technological, universities of the system educational plurinational and entities public linked to the area of investment, through conventions with objectives and goals clearly defined according to the interest of the parties;

Develop research applied to the inside of the company oriented to improve the process industry or that contributes to the welfare public.
II. the application of the provisions of paragraphs a) and c) of the previous paragraph it must occur during the process of investment, and in the case of the provisions of subsection b) parties should conform to the agreements signed.
Article 15. (TRANSFERS ABROAD).
I foreign investors, prior fulfilment of tax obligations and others set out in current regulations, may be transferred abroad in freely convertible currency through the banking system, the following: capital from the total or partial liquidation of the companies in which foreign investment registered is completed, or by the sale of the shares, participations or rights acquired by reason of foreign investment;

The generated net profits of registered foreign investment;

Income arising from the settlement of disputes;

Payments to suppliers or creditors domiciled outside the country directly linked to investment, within the framework of existing and applicable regulations;

Other payments that was entitled, within the framework of existing legislation.
II. the Central Bank of Bolivia shall record the transfer abroad of the currencies referred to in paragraph I of this article.
Chapter III State productive investment article 16. (PRODUCTIVE STATE INVESTMENT).
I. the State in the exercise of its role of investor, implements the productive state investment orientation to the development of the productive circuit of strategic natural resources and productive activities that contribute to the change of the productive matrix.
The contributions of State productive investment are destined to public enterprises and enterprises of mixed capital where the State has a majority shareholding, as well as productive projects of non-traditional economic activities. Receiving the contribution of investment companies shall be liable for the use of resources allocated and results achieved, within the framework of the rules governing its operation.
II. the State can be associated with other investors for the development of economic activities qualified as preferential investment, primarily for the joint development of certain activities of the production chain of strategic natural resources. The State shall control and direction in the mechanisms of investment used for the development of productive activity, referred to in article 9 of this law.
This joint investment will be considered joint investment and because of its strategic importance the article 18 of this law shall apply.
III. the investment of them entities territorial autonomous, may attend with the investment State productive for it implementation of enterprises economic, with the purpose of strengthen and consolidate the development of the region.
Article 17. (REGISTRATION OF THE INVESTMENT STATE PRODUCTIVE).
I. the Ministry of planning of the development will have to his charge the registration of the investment State productive with purposes statistical and of follow-up integral to the project of investment.
II. the record must capture information on origin, destination, contributions and mechanisms of the investment and must include the contributions of investment of them entities territorial autonomous, if appropriate; as well as, the contributions of the investment private Bolivian and of the investment private or public foreign.
Article 18. (PROCESSING OF PRODUCTIVE STATE INVESTMENT). Productive state investment will be taken care of in a timely and agile by competent public authorities, concerning the elaboration, approval, financing and implementation of the investment, within the framework of this law, with social and environmental rules, and other applicable regulations.
Article 19. (PROHIBITION OF PRIVATISATION). Assets and investments recovered as a result of nationalization processes carried out by the State for the recovery of the natural resources and strategic sectors, will not be privatized under any modality.

Article 20. (EFFICIENCY AND ECONOMIC EFFICIENCY). Productive government investments must be made according to criteria of efficiency and economic efficiency, in strict compliance with current legislation.
Chapter IV investment incentives article 21. (INCENTIVES GENERAL AND SPECIFIC).
I. the status may be granted incentives General and specific incentives to all investments carried out in the country, under the conditions laid down in this law.
The General incentives will be awarded to the sectoral productive activities that are framed in the planning of the economic and social development of the country, and will have general application in the sector.
Specific incentives will be granted to investment projects that are classified as priority investment.

II. for the fulfilment of the provisions of the previous paragraph incentives will be determined in the following manner: the General incentives will be proposed by the head of sector ministries to the Ministry of development planning, enclosing the study of identification and justification, including indicators that will measure the economic effects on the country. The Ministry of development planning, prior analysis, may recommend to the Council the application or not of the incentive, which shall be adopted by law or decree, as applicable;





Specific incentives will be proposed by the head of sector ministries to the Ministry of development planning, with the investment project and the evaluation carried out by the proponent Ministry, as well as a report on alignment with the provisions of article 22 of this law. The Ministry of planning of the development, prior analysis, can qualify or not, as investment preferential to the project of investment; It qualify as preferred investment, the Ministry of development planning will recommend the application of specific incentives that must be approved by law or decree, as appropriate to the Council of Ministers.
III. measures to encourage investment will have a temporary effect, and may apply in an interval between one (1) to twenty (20) years depending on economic activity and investment recovery time.
(IV. the Ministry of planning of the development will recommend to the Council of Ministers the suspension or cancellation of them incentives General to requirement informed of the Ministry head of sector corresponding, based on the assessment referred in the subsection to) of the article 23 of the present law. The suspension or withdrawal be approved by law or decree, as appropriate.
The General incentives will maintain its validity and application for those carried out investments that had fulfilled the objectives that determined its granting.

V. The Ministry of development planning shall recommend to the Council suspension or cancellation of specific incentives granted to proven breach of obligations for the implementation of the investment, according to the contractual documents or those who grant rights of use and exploitation of natural resources. The suspension or withdrawal be approved by law or decree, as appropriate.
Contractual documents and those who grant rights of use and exploitation will contain specific provisions laying down clearly and accurately the substantial obligations, where non-compliance will result in the suspension or termination of the incentives granted.
VI. the autonomous territorial entities, within the framework of its powers, may grant incentives for investments concurrent to that referred to in paragraph III of article 16 of this law.
VII. contracts linked to strategic sectors will include specific incentives and these will become effective once the contracts are approved by the plurinational Legislative Assembly.
Article 22. (PREFERRED INVESTMENTS).
I investment intended to the development of the production of strategic natural resources circuits and economic activities that contribute to the change of the productive matrix developed in the framework of the country's economic and social development planning, will acquire preferential investment quality when it is assigned to any of the following activities specific activities of the production chain of strategic natural resources in areas of hydrocarbon mining, energy, transport, which contribute to creating added value;

Economic activities in the areas of tourism, agro-industry, textiles, and others that provide added value, with high innovative potential and strengthening of capacities and expertise in human capital;

Economic activities that generate poles of development in areas of interest to the country, and that are geared to reducing economic and social inequalities of the regions in the country.

II. investment projects, related to the activities referred to in the preceding subparagraphs, should contemplate the technology transfer and the generation of decent employment.
III. the ministries responsible for strategic sectors, must perform actions to the attraction of investments classified as preferred.
IV. the identification of investors interested in the activities referred to in paragraph I of this article, will take place through receipt of proposals and/or official mechanisms for wide dissemination.
Priority will be given to the proposal of the Bolivian investor against the proposal of the foreign investor, when the proposal present similar or better features. This prioritization must ensure the greatest benefit for the country.
Article 23. (FOLLOW-UP TO INVESTMENT). Head of sector ministries held regular monitoring investments carried out in their sector and in particular to productive activity as the preferred investment, which should: evaluate the fulfilment of the objectives that determined the granting of General incentives and their contribution to the sector, on the basis of the expected economic effects;

To assess the fulfillment of goals and specific objectives in projects qualified as a preferred investment, within the framework of the timetable for implementation of the project;

Refer to the Ministry of development planning, the information referred to in subparagraphs a) and b) of this article.
Chapter V competent authority for the promotion of investment article 24. (COMPETENT AUTHORITY). The Ministry of development planning constitutes the competent authority at the central level of the State for the promotion of investment, within the framework of the provisions of the present law.
Article 25. (POWERS).
I. for compliance as referred to in the preceding article, the Ministry of development planning is empowered to: recommend to the Council of Ministers the adoption of policies and regulations to encourage investment in the country;

Recommend to the Council of Ministers the adoption of incentives General and specific to the investment and its suspension or cancellation, in the framework of the policies of economic and social development of the country, and of the provisions of the present law;

Qualify as a preferred investment proposals for projects submitted to his knowledge, when these will confine the provisions in article 22 of this law, prior selection where two or more proposals are submitted for the same economic activity;

Require information to the ministries responsible for strategic sectors, on the procedures to be performed for the identification of investors interested in developing projects of preferential investment;

Require information to ministries, head of sector, referred to follow-up investments, as well as information on incentives to existing investments in their sector;

Require public and private institutions, information related to the investment in the country;

Other inherent to the fulfillment of their powers, to be established by Decree Supreme.
II. the Ministry of development planning, evaluate administrative procedures to make investment in the country, and where appropriate recommend modification and/or simplify them, safeguarding the legality and transparency of the Act.
Chapter VI settlement of disputes article 26. (SETTLEMENT OF DISPUTES). Conflicts arising from relationships between investors, will be solved in the forms and conditions laid down in the regulations.
ADDITIONAL PROVISIONS FIRST.
I concerning treaties to foreign investment that are renegotiated pursuant to the provision transient ninth of the political Constitution of the State, must comply with the regulations laid down in the aforementioned constitutional rule and present law and formalized through agreements investment framework.
II. starting from the publication of this law, any agreement framework of investment or international trade agreement on investment that the country shall be based on the provisions laid down in this law.
III. treatment to investments subject to supra-national integration agreements shall be governed, as long as they have been ratified by the plurinational State of Bolivia and framed in the constitutional precepts.

THE SECOND. Regulations accounting and auditing that attaches the investments carried out, will be all that apply in the country, same must regularly adapt to international accounting and auditing standards.
THIRD.

I contracts involving investments must be recorded in the register of Commerce; for this purpose the Ministry of productive development and Plural economy, adopt specific procedures that must be applied by the trade registry.
II. in the case of joint investments between private national or foreign investors, registration must capture, as a minimum, information on the parties involved, the contract, origin of investment, investor contributions and term of the contract.
III. in the case of joint investments involved the State, in which registration must capture, as a minimum, information on the parties involved, the contract, origin of investment, contributions from investors, contract term, instance of the contract management and grounds for resolution.

PROVISIONS TRANSITIONAL FIRST. The Ministry of economy and finance, within a period of ninety (90) days from the publication of this law, shall draw up the norm that regulates the prices of transfer referred to in subparagraph (b)) of article 11 of this law.
THE SECOND. Within a period of three (3) months from the publication of this law, the competent public authorities whose powers are linked to the treatment of investments in the country, should develop, adapt and publish regulations in its sector when so appropriate for the fulfilment of the provisions of this law and the political Constitution of the State.
The normative before referred must regulate procedures with deadlines brief and simple, in the framework of the principle of simplicity.
THIRD.
I. the Ministry of Justice and the Attorney General of the State, within a period of three (3) months from the publication of this law, to draw up the new standard of conciliation and arbitration which will include specific regulations for the resolution of disputes in the field of investment.
II. the new standard of conciliation and arbitration, shall observe the provisions of the present law and framed within the generally accepted principles for the settlement of investment disputes: fairness, accuracy, good faith, confidentiality, impartiality, neutrality, legality, speed, economy and mutual acceptability.

III. insofar as approval of the aforementioned standard and arise a dispute, the parties to the conflict shall apply provisions of the law No. 1770, arbitration and conciliation, of 10 March 1997, in everything that does not run counter to the political Constitution of the State and the present law.
-FOURTH. The Ministry of planning of the development, within a period of three (3) months from the publication of this law, shall draw up the specific regulations for the registration of the productive state investment.
QUINTA. The Central Bank of Bolivia, will be developed within a period of three (3) months from the publication of this law, the rule governing the registration of foreign investment, for information.
FINAL PROVISIONS FIRST. The ministries of Economics and public finance, and development planning, develop and/or put in place the standards referred to budgetary management and registration procedures, to make the contribution of public resources allocated to productive state investment or joint investment, ensuring access to resources for investment according to the conditions established in the respective legal documents.
THE SECOND. Investments made in the country prior to the entry into force of this law, are subject to the rules and legal instruments that established them in everything what does not contradict to the political Constitution of the State. To qualify for the incentives set out in this law, new investment contributions must be attached to sectoral legislation and regulations established in this.
THIRD. State investments in sectors that are not strategic, may be transferred to other forms of economic organization of the plural economy actors, only when the State pursue social objectives. This transfer must be approved by express Act of the plurinational Legislative Assembly.
-FOURTH. The Ministry of planning of the development, in coordination with the relevant ministries, will prepare a proposal for a special law regulating the application of the first paragraph of the article 262 of the political Constitution of the State. This law special must repeal the law No. 1961, of runners of export of energy, hydrocarbons and telecommunications of need national, of 23 of March of 1999.
QUINTA. The Ministry of development planning, incorporate into its structure an organizational area dedicated to the fulfillment of the provisions of this law.
6TH. This law applies to all forms of economic organization of the plural economy, in the terms and conditions set forth in this.
The Executive Body shall regulate this law by Supreme Decree.

SOLE ABROGATION AND REPEAL PROVISION.
I will appeal the following regulatory provisions: Law No. 1182, of investments, on September 17, 1990.

Law No. 1330 of privatisation, of 24 April 1992.

Law No. 1544, capitalization, 21 March 1994.

Decree No. 23230-A Supreme, of 30 July 1992.
II. appeal and repealing all provisions contrary to this law.
Refer to the Executive Body for constitutional purposes.
Two thousand fourteen is given in the room of sessions the Assembly Legislative plurinational, twenty-five days of the month of March of the year.
FDO. Eugenio Rojas Apaza, Marcelo William Elio Chavez, Marcelo E. Antezana Ruiz, Roxana Camargo Fernandez, Nelson Virreira Meneces, Angel David Cortés Villegas.
I therefore enacted it is and meets as a law of the plurinational State of Bolivia.

Government Palace of the city of La Paz, to the four days of the month of April of the year two thousand fourteen.
FDO. EVO MORALES AYMA, Juan Ramón Quintana Taborga, Elba Viviana Caro Hinojosa, Luis Alberto Arce Catacora, Elizabeth Sandra Gutierrez Salazar, Ana Teresa Morales Olivera, Amanda Davila Torres.