2. Bilateral Investment Agreements and Taxation Treaties
As mentioned earlier, potential investors should note that Bolivia has abrogated the Bilateral Investment Treaties (BIT) it signed with the United States and 22 other countries. The Bolivian Government claimed the abrogation was necessary for Bolivia to comply with the 2009 Constitution. Companies that invested under the U.S.–Bolivia BIT will be covered until June 10, 2022, but investments made after June 10, 2012 are not covered.
The BIT with Bolivia was the first to be terminated by a U.S. treaty partner. In a related action, in October 2007, Bolivia became the first country to withdraw from the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). Bolivia has had a signed BIT with Peru since 1993.
Bolivia does not have a bilateral taxation treaty with the U.S. However, Bolivia has several agreements with other countries aimed at avoiding double taxation. Those countries include: Argentina, France, Germany, Spain, Sweden, the United Kingdom, and Andean Community countries. The Bolivian Government is currently assessing the possibility of agreements with several additional countries.