Tax & Accounting

RC-IVA and Form 110: What Bolivian Employers Must Withhold, and How Employees Offset It

Your best-paid employees owe a monthly tax most of them never see, because you withhold it. Or because their invoices cancel it out. Either way, the responsibility for getting it right sits with you.

By Contably · October 5, 2026 · 7 min read

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RC-IVA (Régimen Complementario al IVA) is the tax on personal income in Bolivia, and for salaried employees it works through the employer. You calculate it, you withhold it, and you pay it to the SIN. Your employees can reduce or eliminate it by presenting invoices for their personal spending on Form 110.

1. Who actually owes it

The calculation gives every employee a deduction equal to two national minimum wages, plus a further credit equal to 13% of two minimum wages. In practice, only employees whose salary after social-security contributions exceeds about four minimum wages end up owing anything.

With the 2026 Salario Mínimo Nacional set at Bs 3,300 (DS 5516), two minimum wages are Bs 6,600 and the practical threshold is around Bs 13,200 of net salary. Use the current minimum wage in every month's calculation, not last year's.

2. The monthly calculation

Example: one employee, one month
Salary after labour contributionsBs 15,000
Less: two minimum wages (2 × 3,300)− Bs 6,600
Taxable amountBs 8,400
RC-IVA at 13%Bs 1,092
Less: 13% of two minimum wages− Bs 858
Less: 13% of Form 110 invoices (Bs 1,800)− Bs 234
To withhold this monthBs 0

Without the Bs 1,800 in invoices, you would withhold Bs 234 from this employee's pay. If the invoices exceed what's needed, the employee carries a balance in their favour to the following months, updated by the UFV.

3. Form 110: the invoices that count

Employees present Form 110 with invoices for their own purchases. For an invoice to be accepted, it generally has to:

Since SFE, most invoices are electronic and the SIN can verify them directly, so "creative" invoices are easier to catch than ever.

The employer is the withholding agent. If an employee's Form 110 is wrong or late and you withhold too little, the SIN comes to the company for the difference, plus interest and penalties. Set an internal cutoff each month for Form 110 submissions, and don't run payroll on invoices you haven't seen recorded.

4. Your monthly checklist as employer

1
Identify who's above the thresholdReview after every raise, bonus month or change to the minimum wage.
2
Collect Form 110 by your cutoffPublish a fixed internal date so payroll isn't held up waiting for invoices.
3
Calculate and withholdPer employee, carrying forward any balance in their favour.
4
Declare, pay and send the payroll tax reportFile the withholding return and the planilla tributaria by your due date, which depends on the last digit of your NIT.
5
Watch DecemberThe aguinaldo is not subject to RC-IVA, but other bonuses paid in December are taxable income. Keep them clearly separated in the payroll.
How Contably helps: Contably's payroll module calculates RC-IVA per employee with the current minimum wage, tracks each employee's balance in their favour with UFV updates, and produces the planilla tributaria ready to submit, so withholding errors don't land on the company.

This article is general information for Bolivian businesses, not tax or legal advice. Rules and rates change; confirm how they apply to your business with your accountant or the SIN before acting.

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