Bolivian President Luis Arce on Wednesday confirmed the country was facing an “attempted coup” after the “irregular mobilisation” of some army units in La Paz.
Heavily armed soldiers and armoured vehicles gathered in the capital's Plaza Murillo, according to videos shared on social media.
Live television feed also showed a military vehicle ramming into the front doors of the Bolivian Government Palace.
“Our country is facing an attempted coup,” Mr Arce, surrounded by his ministers, said in a video posted on Facebook.
“Once again, our country is facing interests that aim to topple democracy in Bolivia.”
He called on Bolivians to organise against the coup “in favour of democracy”.
“Long live the Bolivian people. Long live democracy,” he said, with the call repeated by those around him.
Mr Arce earlier appeared on live TV confronting the general commander of the army, Juan Jose Zuniga, in a hallway, saying: “I am your captain and I order you to withdraw your soldiers.”
Gen Zuniga was later heard demanding political prisoners, including members of the military, be released, and that democracy be re-established in Bolivia.
Troops eventually withdrew from the plaza, with local media reporting that Gen Zuniga had been arrested.
Bolivians flocked to petrol stations to fill up on fuel while others joined long queues to take money out of ATMs.
Mr Arce had previously denounced on X “irregular mobilisations of some units of the Bolivian Army”, adding that “democracy must be respected”.
AFP reported that the military has withdrawn from the plaza.
Leaders in South America, Europe and in the Organisation of American States have condemned the reported coup attempt.
Bolivian TV outlets showed soldiers and two tanks in the square, which is right outside major government buildings in La Paz.
“The three chiefs of the armed forces have come to express our dismay,” Gen Zuniga told a local TV station.
“There will be a new cabinet of ministers. Surely things will change but our country cannot continue like this any longer.”
Gen Zuniga later said he would recognise Mr Arce's authority “for the moment”.
Mr Arce has sworn in new leaders of the army, navy and air force, according to local media.
Former president Evo Morales, who has publicly split with Mr Arce even though both belong to the same socialist movement, called for a national mobilisation of his supporters to back democracy.
He also announced a general stopwork and called for roads to be blocked.
“I ask the people with a democratic vocation defend the homeland from some military groups that act against democracy and the people,” he said on X.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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