Wealth Tax Law, is it a South American Trend?

Following Argentina’s trend, Bolivia – on December 28th, 2020 – passed a wealth tax intended to help with the adverse economic effects of the COVID pandemic.

While Argentina now has a one-time wealth tax that affects individuals that own assets valued at more than $2.4 million, the Bolivian wealth tax applies to all Bolivian residents with assets over around $4.2 million, independently where the assets are located, and to non-residents with assets in Bolivia. The Bolivian tax will be applied annually from 2020.

The Bolivian tax rate ranges from 1.4% to 2.4% over the asset present market value, and delinquencies will be fined up to 200%.

Other countries that include Brazil, Chile, and Peru are considering enacting wealth taxes also.

2021 TNTI 1-11