- Overview: Bolivia
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Bolivia
Getting your business up-and-running in Bolivia can be challenging, especially if you do not speak the native language. Establishing your own business entity in Bolivia is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Bolivia, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Bolivia, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in Bolivia
Navigating the Bolivian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Bolivian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Bolivia without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Bolivia. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in Bolivia
Employment related taxes
Personal income tax (PIT). Employers have an obligation to withhold and pay to the tax authorities the RC-IVA on gross income after deduction of social contributions and other concepts established by tax law.
An employee is taxed on salaries, bonuses (except Christmas bonus), living allowances, housing allowances, tax reimbursements, benefits in kind and any other form of income/compensation earned as an employee for work carried out in Bolivia. There are no concessions to short-term foreign residents.
Tax Resident employees. Bolivia taxes individuals only on their Bolivian-source income, regardless of their nationality/residence. In this regard, income arising from goods/assets located or utilized economically within Bolivian territory and performance of any activity carried out within the country is considered Bolivian-source income. No Bolivian taxes are imposed on foreign-source income earned by individuals.
Non-tax resident employees. Bolivia doesn’t define the concept of residence.
Payroll Cycle in Bolivia
Salaries must be paid at the end of each month.
13th salary in Bolivia
A 13th salary is required at the end of the year and is equivalent to one month’s pay (Aguinaldo). The Christmas bonus is not subject to tax and social security contributions.
14th-month is also a mandatory bonus if GDP is over 4.50% or makes annual profits. All employees must receive one additional monthly salary, subject to a cap of 25.00% of the company’s profits (Profit bonus (Prima).
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Bolivia
Compensating your local and expat workforce in Bolivia and closely adhering to Bolivian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Bolivian labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Bolivia by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Bolivian laws. To get the latest updates on taxation in Bolivia and in 190 countries worldwide, contact Acumen’s team of global employment experts.