Bolivia's sports sector awaits crucial incentive law

A proposed "Law of Incentive to Sport" in Bolivia is generating concern among various sports stakeholders due to its delayed approval. This legislation is viewed as a critical tool to tackle persistent economic, tax, and labor challenges that hinder the development of sports across the nation.

The bill aims for a structural overhaul of the national sports system, intending to create more favorable conditions for sports federations, clubs, associations, and individual athletes. A significant focus is placed on attracting greater private sector investment into sports activities, which are often underfunded.

Key elements of the proposed law include the establishment of a "Sports Tax Regime" with a 0% tax rate for non-profit sports entities, offering exemptions from various taxes like VAT and income tax. It also proposes a "Sports Tax Amnesty" to forgive penalties and interest on outstanding tax debts from 2006 to 2024, potentially allowing many organizations to regularize their financial status. Furthermore, a "Sports Patronage" mechanism is designed to incentivize private companies by offering tax deductions of up to 100% on corporate income tax for investments in certified sports initiatives.

The Bolivian Football Federation (FBF) has been a proponent of the law, with its president, Fernando Costa, collaborating with President Rodrigo Paz on the proposal. The initiative also drew inspiration from recommendations by CONMEBOL, the South American football confederation, which emphasized the need for stronger financial mechanisms for sports institutions. Despite these efforts, the law's promulgation remains pending, leaving sports leaders anxious about its future.