Bolivia Gazettes Decree on VAT Exemption for Specified Imports, Incentives for Reinvestment of Profits

The Bolivian Official Gazette Jan. 2 published Supreme Decree No. 5303. The decree establishes a VAT exemption for the importation of crude petroleum oil, gasoline for motor vehicles, and diesel oil. The decree also includes an incentive for the reinvestment of profits realized by partners or shareholders domiciled abroad in companies established in Bolivia or branches of foreign companies that reinvest all or part of their profits or dividends in the business. The company or branch must withhold the applicable tax on corporate profits distributed to partners or shareholders in the following percentages: 1) 3.125 percent if the reinvestment is ...