Key Benefits:
GRAL. RENÉ BARRIENTOS ORTUÑO
CONSTITUTIONAL PRESIDENT OF THE REPUBLIC
As soon as the National Congress has sanctioned the following Law:
THE H. NATIONAL CONGRESS,
DECRETA:
PERSONAL SERVICES INCOME
CHAPTER I
GENERAL PROVISIONS
Article 1. Income from personal services will be taxed under this Law.
Article 2. GROSS INCOME, for the effects of this Law is the total amount of cash received or in
species, during a tax period corresponding to a fiscal year, by a natural person in relation to his or her personal work, whether he or she is dependent on it, independently or temporarily, and occasionally.
will take the value of the market or its value at the date of its perception, in
national currency.
Article 3. EXCLUSIVE. Gross income is excluded:
Evictions and severance payments according to the General Labor Law.
The compensation for eviction and service time in the event of death of the worker.
Subsidies: pre-family, marital, birth, breastfeeding, family, and sepelium, received as family allowances.
The prizes coming from personal risk insurance contracts.
The sums collected by
The perceived food pensions.
Article 4. GROSS INCOME. It is the gross income minus the previous exclusions.
CHAPTER II
INCOME FROM PERSONAL SERVICES PROVIDED AS DEPENDENT
Article 5. GROSS INCOME, from personal services provided as a subsidiary, is the totality of
the ordinary and extraordinary remuneration received in the exercise of a function or employment in the service of persons governed by public law or private, natural or legal.
These are included in this type of income, in a simple and non-limiting manner: wages, salaries,
wages, bonuses, extraordinary remuneration, supplementary or to pay, percentage, categorizations, compensation, shares, commissions, rewards, prizes, bonuses of any kind or denomination, allowances, representation expenses, allowances, the consolidation of rights on free shares obtained by the provision of personal services, premiums, Social Security benefits consisting of maternity and professional risk benefits, invalidity, old age and death income, allowances and allowances paid by the employer.
Article 6. EXEMPTIONS. The following rents are considered exempt:
The remuneration received in the performance of their duties, by diplomats, consultants and other official representatives of foreign countries in Bolivia and the Bolivian President of the Republic of Bolivia, in the service of the previously appointed officials, on condition of reciprocal treatment of the diplomatic personnel and official representatives of the Bolivian State in these countries.
Remuneration received by foreigners in service of international organizations such as: United Nations, O.E.A., International Monetary Fund, World Bank, Inter-American Development Bank, originally designated by the
remuneration of the members of the Technical Assistance of foreign nationality shall be governed by the agreements to be concluded for this purpose.
The Bolivian Staff is not exempted from this tax.
20% Annual Gross Income-This exemption will not exceed $b. 30,000-This tax must be paid for the surplus.
Social Security benefits consisting of sickness, maternity, occupational risks and invalidity, old age and death income paid by the institution insurer and by the employer.
Article 7. CONCESSIONS, dealing with this income, are:
The contributions that the employer has to the employee or worker for work contributions to the social security agencies.
The contribution for school buildings established by Decree-Law No 7541 of 9 March 1966.
The $b fixed lien. 10.-monthly to the dependents included in the DL. No 7625 of 11 May 1966.
Article 8. NET INCOME, is the gross income minus the exemptions and concessions.
Article 9. FAMILY LOADS. Net income supports the following deductions for family charges:
a)? By the taxpayer? whatever your marital status is .................... $b. 2,400.-
b) By the spouse who does not receive income .......................................................? 1,000.-
c) For the child under 21 years of age or older up to the age of 25 years if you study
a profession and do not perceive income ..............................................................? 1,000.-
d) By ascendants who do not perceive rent and live at the expense of the
contributor ............................................................................................? 1,000.-
e) By family members, understanding themselves by such descendants, in
any degree, blood collateral relatives up to
the third degree (brothers, uncles, nephews) and by the like
to the second degree (father-in-law, son-in-law, brother-in-law,
stepdad, stepson), job incapacitors or older
aged 60, who perceive rent and live at the expense of the taxpayer ..........................................................................................? 1,000.-
Article 10. RULES FOR DEDUCTION OF FAMILY LOADS.
When both spouses receive rent for personal services:
Each will be entitled to the deduction? by the taxpayer? in their respective declaration.
The family charges laid down by points (c), (d) and (e) of Article 9º shall be deductible in the declaration of the husband only.
If by divorce or judicial mandate the children shall be left with only one of the parents or distributed among them, the tenure of the children will entitle to the deduction.
If the one who enjoys the possession of the children does not work and receives alimony alimony for these, the giver of the pension will deduct the corresponding family loads.
Is the deduction? for the spouse? even in the case of divorce, if the taxpayer is obliged to give his or her former spouse who is not in receipt of income a food pension.
In cases of widowhood, the survivor will have the right to deduct for children who are under their dependency.
Article 11. TAXABLE INCOME, is the amount on which the tax scale applies and is constituted
by the Net Income minus deductions for family charges.
Article 12. The taxpayer who receives remuneration for more than a function or employment should
consolidate them in their income statement.
CHAPTER III
INCOME FROM PERSONAL SERVICES PROVIDED IN
INDEPENDENT.
Article 13.- GROSS INCOME, from personal services, provided in an independent manner, is the totality of remuneration received in money or species by a natural person who does not have a relationship of dependency profession, trade, art or other activity of a similar nature.
These are included in this type of income, in a manner merely enunciative and not limited: the fees
professionals and in general the ordinary remuneration and (a) extraordinary benefits received by average technicians, artisans and auxiliary trade agents such as brokers, commission agents, carriers; the remuneration received by officers, number procurators, Notaries of Public Faith, Civil Registry Officers; the salaries assigned to the owners of companies and single-person businesses; members who provide personal services in a collective society, limited liability and the managers of the comanditarian societies within the limits established by Article 63º of the D.S. of 15 May 1929, as amended by the D. S Nº 7828 of 5 October 1966 and revenue from copyright or inven, provided that are personally perceived by these.
Article 14. Tax on capital income tax will be taxed by taxpayers who:
a) Have more than three dependent workers;
b) Poses more than one vehicle in public service;
c) Admit and exploit copyright or inventor.
Article 15. Deductions will be deducted from the Gross Income the following expenses for obtaining and
preservation of the Income:
renting the office, office, workshop, or local where the profession is exercised, art, or craft.
Electrical power consumption and telephone service in the office, office, workshop, or workplace.
Salaries up to of 3 employees including the Social Security contributions and the social benefits that correspond to them when they are cancelled, provided that the taxpayer acts as a Retention Agent of the respective taxes.
Patents Municipal for the exercise of the profession, art or craft.
Subscription of magazines
above deductions must be justified with legal documentation and may not exceed 25% of the Gross Income, although the amount of expenses incurred is higher.
The taxpayer, without the need for to credit it with legal documentation, will you be able to benefit from the? deduction of 10% of your Gross Income? which is supported in replacement of previous deductions.
Article 16. ADJUSTED GROSS INCOME, is the Gross Income minus the deductions that are detailed in the
article 15 °.
Article 17. CONCESSIONS, are the sums corresponding to:
The contribution for school buildings established by Decree-Law No. 7541 of March 9, 1966.
The $b fixed lien. 20.-monthly established by Decree Law No. 7625 of 11 May 1966 for those who freely exercise their profession.
Article 18. NET INCOME, is the Adjusted Gross Income minus the concessions.
Article 19. FAMILY LOADS. Articles 9th and 10th of this Act apply.
Article 20. TAXABLE INCOME is the amount on which the scale of the tax is applied and is constituted
by the Net Income minus the family charges.
Article 21.- CONSOLIDATION OF INCOME. The independent taxpayer who In addition, it receives remuneration as a subsidiary, will consolidate in its independent statement, the net income of all its income and this amount will be deducted the family charges. The tax thus calculated will subtract the sums retained by the Retention Agents, and must pay the balance within the time limits indicated by this Law.
Article 22. PRESUMPTION OF INCOME-Independent taxpayers are required to declare the
Gross Income actually obtained owing to this effect to carry a book of income and income recorded in the offices of the Income. In cases where this statement is omitted or missing, the General Income Diretion may determine the presumed taxable income by taking into account the following elements of judgment.
The activity developed by the taxpayer.
The invested capital.
The volume of operations.
The number of dependent workers.
The estate increase.
The taxpayer's standard of living.
Other items of judgment that contribute to this Presumption.
CHAPTER IV
PERSONAL SERVICES INCOME TAX SCALE BORROWED AS A DEPENDENT
OR INDEPENDENT
Article 23. TAX SCALE-The annual income tax on personal services as dependent or independent, will be paid according to the following scale:
From $b.
Up to $b.
Fixed $b.
About $b.
Percentage
1 3,000--3% 3,001 6,000 90 3,000 5% 6,001 18,000 240 6,000 7% 18,001 30,000 1,080 18,000 11%
30,001 60,000 2,400 30,000 15% 60,001 90,000 6,900 60,000 20% 90.001 forward 12,900 90,000 25%
CHAPTER V
INCOME FROM TRANSIENT OR OCCASIONAL WORK
Article 24. These are income from transient or occasional work:
Remuneration occasionally received in an independent manner from your work habitual, by residents in Bolivia.
They are considered residents for the purposes of this Law:
To those domiciled in Bolivia.
To those who remain in the country for more than 180 continuous or discontinuous days, within a fiscal year.
To those with employment contracts in the country, for more than 180 days.
Remuneration received by natural persons not resident in Bolivia.
In general, the remuneration received by persons not listed in Chapters II and III of this Law.
are expressly included in the scope of this article the remuneration received occasionally for public, theatrical, sports, taurines, radio or television, and other similar performances; non-resident professionals or technicians.
Article 25. On gross income under points (a) and (c) of the previous article, 8% and
on those of point (b) shall be taxed 12% without any deductions, exemptions, concessions or family burdens.
Article 26. Resident contributors registered to regularly tax your income taxes of
personal services, will consolidate your occasional or transitory income to the net income of your statement of income. The final settlement shall be carried out in accordance with the rules established for independent or dependent taxpayers as the case may be.
The payments made in accordance with the fees laid down in Article 25 Tax deducted
payable on consolidated income settlement.
CHAPTER VI
TAX RETURN AND PAYMENT
SECTION I-OF THE DEFINITIONS
Article 27. A WITHHOLDING AGENT, for the purposes of this Law, is any person governed by public law or
private, natural or legal who pays remuneration for Services received from natural persons and which is obliged to deduct, retain and pay, on behalf of of these personal services income taxes.
Article 28. REQUEST FOR DEDUCTIONS FOR FAMILY CHARGES, is the one formulated by the
taxpayer at the right end and must be credited with birth and marriage certificates. The deductions referred to in Article 9º (d) and (e) shall be tested in each tax period with legal certificates.
Retention agents may document the deduction of family charges from their dependents with a copy
of the family allowances plan duly endorsed by the Social Security institutions.
Deductions and modifications for family charges will be computed from the date on which the right is originated or ceased
.
Article 29. RETENTION DECLARATION is the monthly statement by the Retention Agent to the collecting offices about the background, circumstance, and individual and overall amount of withholding taxes.
Article 30. INCOME STATEMENT for the purposes of this Law, is that made by a natural person before
the tax offices or withholding agents detailing: (a) the entire income received as remuneration for their work under conditions of dependence, independence or occasionally. (b) Deductions, exemptions, concessions and family charges. c) The taxable amount of your income. d) The tax to be paid.
Article 31. RETENTION RELIQUIDATION is the annual practice by the Retention Agent on
the basis of the? statement of income? of their dependents, in order to establish differences in favor or against the tax resulting from the tax determined in that declaration and the total monthly deductions made.
SECTION II.-OF THE DEPENDENT TAXPAYERS
Article 32. The Retention Agent will have the following obligations:
Receive from its dependents, at the time of hiring them, and when the family composition is modified, the documentation that justifies them? Family loads?.
Browse the documentation, cause errors to be corrected, or reject it. In the latter case, the taxpayer will be able to complain to the Office of the Recaudator.
Submit to the office collecting, until the 10th day of the month, the? statement of retention? (four copies) for the previous month.
Pay the total amount of holds within the time limits set forth in this Law.
Require the Office to return the first copy of the? statement of retention? Payment voucher for your file. The second copy will remain in the Office of the Recaudadora and the last two will be sent by this to the General Income Diretion.
Require from its dependents that until the 31st of January of each year they deliver:
The request for deduction for? family loads?, (four copies): to which the Agent will attach the documentation; relative (a copy).
The? statement of income?, as set out in Article 31º (four copies).
To present to the Office of the Recauder until the 10th of March of each year, the reliquidation of holds (four copies) accompanied by the documentation that is detailed in the previous article.
To obtain from the Office return of the following documents: two copies of each request for deductions and each income statement and one copy of the withholding relief.
A copy of the deduction application and one of the income statement shall be delivered to each dependent worker, the remaining will be retained by the employer.
The Collector's Office will file a copy of each of these documents, the other copies will be forwarded to the General Directorate of Income.
Article 33. When the? income statement? the taxpayer sets balances against it must
be uncounted by the Retention Agent in the payment for the month of February (March 10). If the difference results in your favor, the Retention Agent will make up for the excess in future payments to be made.
The declaration of relief approved by the Office of the Recaudadora is sufficient credit document for the
future payments of this tax.
Article 34. The General Directorate of Income will establish the system for the calculation of holds.
SECTION III.-OF THE INDEPENDENT CONTRIBUTORS.
Article 35.- Independent taxpayers will have the following obligations for the payment of tax
on personal service income.
Submit 2 income statements annually (three copies) in the form specified in Chapter III of this Law. The first declaration, which is due to the first half of the year due on June 30, will be presented until July 31. The second term for the second semester due on December 31, will be filed until January 31 of the following year.
Attach to the first income statement the request for deduction for? family charges? (three copies) justified by the respective documentation.
Only when these charges are modified will a new application be made in the second half of the year.
Accompanying the second? statement of income? a statement of assets at 31 December of the year.
Attach to each of the half-yearly income statements, a copy of the documents justifying the deductions and concessions referred to in Articles 15 and 17.
Pay the tax within the deadlines set by paragraph (a) of this article.
Collect a copy of the application for deductions for? family charges? and another of the? statement of rent? The second copy, of each of these documents, must remain in the Office of the Recaudadora and the third one must be sent to the General Directorate of the Income.
Consolidate in the? declaration of income? for the second half of the year, all income from independent, dependent or occasional work as provided for in Articles 21 and 25 of this Law.
Determine, in the second half of the year, the annual tax on consolidated income, deducting the tax paid in the first semester, including the deductions made by the Agent and paid the resulting difference. If the settlement results in a balance in favour of the taxpayer, the taxpayer shall be paid by way of a tax discount which shall be paid for the following six months, without further formality than the presentation of the proof of previous management.
Tax payment forms and papers are not subject to payment of any tax.
SECTION IV.-OF CASUAL WORKERS.
Article 36. For the payment of income tax from occasional work, they shall act as Agents of Retention, with the obligations and attributions established by Article 27º of this Law, persons governed by public or private law or legal that:
Sponsors public performances.
Hire the services of professionals and technicians on an occasional or transient basis.
Pay for any concept fees or remuneration on an occasional basis.
CHAPTER VII
SPECIAL PROVISIONS
Article 37. CALCULATION OF TAX FOR INCOMPLETE PERIODS.-Taxpayers
dependent or independent who have worked for only a few months in a tax period, will calculate the proportional income equivalent to one year and will pay the tax imposed only for the months worked.
Article 38. PROHIBITION ON GRANTING RELEASES.-No authority may grant release to
the payment of this tax, extend the exclusions, exemptions or concessions referred to in Articles 3, 6 and 7 or grant other new ones by decrees or resolutions, except for cases of modification of this Law.
Article 39. Conventions that establish the employer's commitment to pay this tax on behalf of the
employee or dependent, will not have for that tax scope. The sums to be paid for this concept must be included in the salary or remuneration of the employee or dependent for the purposes of calculating the tax. Employer taxable profit deductible expense.
Article 40. PENALTIES AND PENALTIES. -Taxpayers or Retention Agents who omit the
presentation of statements or no longer pay the present tax, in the terms and conditions established by this Law will be subject to the sanctions and penalties established by the laws in force in the country.
Article 41. VALIDITY OF THE LAW.-This Law will apply to personal service income
received during the year 1969 and following.
Article 42. DEROGATIONS: The following legal provisions are hereby repealed:
The Law of May 3, 1928, Articles 3 to 13 and those relating to the withholding and payment of the personal services tax.
The Regulatory D.S. of May 15, 1929, Articles 21º to 49th and related provisions to the withholding and payment of the personal services tax.
D.S. of December 13, 1929, the unique article comprising the following items 21º, 24th, 43º, 48º, 75º, 83rd, 95º; additional articles: 48th and the first part of the article 69º b.
Decree Law of July 20, 1936, article 2nd to 6th.
Law of July 4, 1938, articles 2nd, 3rd and 5th.
D.S. of 7 October 1941, article 1 to 6, 8th and 9th.
Law of 25 November 1941.
Law of December 28, 1948.
D.S. Nº 4563 of 24 de eenro de 1957.
D.S. No. 4990 of July 10, 1958.
D S. Nº 5047 of 28 September 1958, article 2, only in the part that exempts from the payment of the income tax of personal services.
D.S. Nº 5049, of 1 ° October 1958, article 4 only in the part of exempts of the payment of the personal services income tax.
R.S. Nº 78530 of 21 October 1958, article 2, only in the part that exempts the payment of the income tax from personal services.
Supreme Resolution No. 97948 of October 7, 1960.
D.S. Nº 5719 of 3 March 1961.
D.S. No. 6511 of 28 June 1963, article 1, only point (a).
D.S. No. 6517 of July 5, 1963.
D.S. No. 6561 of August 30, 1963.
D.S. No. 6767 of 12 May 1964.
D.S. Nº 6797 of June 19, 1964, article 4, 5, and 7th.
Decree Law No. 7503 of 1 February 1966.
Any provision contrary to this Law.
Contact the Executive Branch for constitutional purposes.
Session of the H. National Congress.
La Paz, December 18, 1968
Fdo. Manfredo Kempff Mercado, President of the National Senate, Oscar Ortiz Avaroma, Senator Secretary,
German Vargas M., Deputy Secretary, Franz Ondarza Linares, President of the H. Chamber of Deputies, Alberto Salcedo Pizarroso, Senator Secretary, Ivan Angulo Deputy Secretary.
Therefore, it is enacted so that it has and will comply as the Law of the Republic.
Palace of Government of the city of La Paz, at the twenty-four days of the month of January of a thousand nine hundred and sixty and
nine years.
FDO. GRAL. RENÉ BARRIENTOS ORTUÑO, Rolando Pardo Rojas, René Baldivieso.
