Bolivia, one of the two inland countries of South America is bordered by Brazil, Paraguay, Argentina, Chile and Peru. Geography, Bolivia exhibits a great variety of terrains and climates. Whilst Sucre is the constitutional capital, La Paz is the largest city, politically and commercially focused, the administrative capital and seat of government. The population of Bolivia has significantly grown in the last few years. Spanish is the most common spoken language and there are over 35 indigenous languages, which are all constitutionally recognized as official languages. As far as literacy is concerned, Bolivia has, by Latin America standards, a high education system.
Bolivia has huge natural gas reserves. Industry is limited to mining and smelting, food processing, petroleum refining, tin, and small-scale manufacturing. Petroleum products, aircraft and parts, plastics, paper, foods, automobiles, and consumer goods are all imported. Bolivia also has extensive hydroelectric potential, which is underutilized.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Bolivia. Forward planning is of the essence to optimize costs. Bolivia has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Bolivia, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Bolivia, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.