Depreciation is calculated on the cost of acquisition or production of goods, which include expenses incurred in connection with the purchase, transport, introduction to the country, facilities, assembly, and similar which are necessary to place the property in condition to be used.

As a general rule, depreciation and amortization are allowed under the straight-line method at the following rates:

Buildings	40 years	2.5%
Office furniture and fixtures	10 years	10.0 %
General machinery	8 years	12.5 %
Equipment and facilities	8 years	12.5 %
Banks and boats in general	10 years	10.0%
Motor vehicles	5 years	20.0 %
Planes	5 years	20.0 %
Used heavy	5 years	20.0 %
Agricultural machinery	4 years	25.0 %
Working animals	4 years	25.0 %
Tools generally	4 years	25.0 %
Widgets and female pure pedigree or crossbred	8 years	12.5 %
Computer equipment	4 years	25.0 %
Irrigation canals and wells	20 years	5.0 %
Ponds	10 years	10.0 %
Fences, gates	10 years	10.0 %
Staff housing	20 years	5.0 %
Furniture and fixtures in staff housing	10 years	10.0 %
Silos, warehouses and sheds	20 years	5.0 %
Sheds and wooden sheds	5 years	20.0 %
Sheds and metal sheds	10 years	10.0 %
Facilities electrification and rural telephony	10 years	10.0 %
Roads inside	10 years	10.0 %
Sugarcane	5 years	20.0 %
Vines	8 years	12.5 %
Fruit	10 years	10.0 %
Oil wells	6 years	20.0 %
Pickup linesthe oil industry	5 years	20.0 %
Field equipment oil industry	8 years	12.5 %
Processing plants the oil industry	8 years	12.5 %
Pipelines oil industry	10 years	10.0 %

Amortization of intangible assets with an actual cost, including the cost actually paid for oil and mining rights, from the time the company started its operation to generate taxable income, will be amortized over five (5) years. The cost on which amortization is computed shall be equal to the purchase price plus costs incurred to put the intangible property in the service of the company.

Start-up expenses, not exceeding 10% of paid-up capital, may be deducted in the first year or may be written off over a period of 4 years.

COVID-19 Emergency Measures

Bolivia announced economic recovery measures from the COVID-19 pandemic, whereby corporate taxpayers (excluding mining and hydrocarbon extractive enterprises) are allowed to voluntarily apply an accelerated depreciation method for fixed assets acquired between 1 April and 31 December 2020. The accelerated depreciation method allows a reduction in the standard useful life of the asset to its half, which is to be applied from the asset first put to use.

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