Colòmbia flag Colòmbia: Entorn econòmic

Impostos a Colòmbia

Tax Rates

Consumption Taxes

Nature of the Tax
Impuesto al Valor Agregado (IVA) - Value Added Tax (VAT)
Tax Rate
19%
Reduced Tax Rate
5% on toasted coffee; wheat; sugar cane; cotton seeds; soy; rice; prepaid health services; health insurance; storage of agricultural products.
0% on tourism, if rendered to nonresidents in Colombia used in the country for the benefit of a company that is registered in the National Tourism Registry and promotes tourism by engaging in certain qualified activities; exports and services rendered exclusively in Colombia and used exclusively abroad by companies or individuals who are not engaged in business in Colombia.
Exempt items include: interest and financial income from credit operations; education services provided by preschool, primary, middle and intermediate, higher and special or non-formal education establishments, recognized as such by the national government; energy and public energy services based on gas or other inputs; water for the provision of public water supply and sewerage services, public water supply and sewerage services, public sanitation services and public garbage collection services.
Other Consumption Taxes
Excise duties levied on cigarettes and certain alcoholic beverages (beverages with more than 35% alcohol) at rates ranging from 20% to 55%.
A tax of COP 50 applies to each plastic bag. Medicinal cannabis is subject to a tax of 16% that cannot be credited against VAT.
An indirect consumption tax is levied on mobile phone services at 4%, vehicles and aircraft at 8% or 16% and on restaurant and cafeteria services at 8%.
It should be noted that Colombia is divided into 32 departments which can affect some tax policies.
 
Find out more about Taxes and Accounting in Colombia on GlobalTrade.net, the Directory for International Trade Service Providers.
 

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Corporate Taxes

Company Tax
31% (as of tax year 2021 - it will be reduced to 30% by 2022).
A 20% rate applies to non-commercial companies located in a free trade zone.
Tax Rate For Foreign Companies
Resident companies are taxed on their worldwide income whereas non-resident companies are only taxed on their Colombia-source income.
Worldwide income earned by non-resident entities that is attributable to branches and permanent establishments in Colombia will be taxed at 31% for 2021 (or 10% in case of capital gains). Profit remittances taxed at the branch level are subject only to the 10% rate.
Capital Gains Taxation
Capital gains are generally taxed at 10%.
Capital gains from the sale of assets held for two years or more, or on the liquidation of a company incorporated for two years or more, are taxed separately at a rate of 10%.
Main Allowable Deductions and Tax Credits
As a general rule, expenses that are necessary, proportional, have a cause-effect relationship with the income-producing activity, and have been realised during the relevant tax year under the accrual method of accounting are tax-deductible.
Amortisation of tangible and intangible assets can be deducted at rates ranging from 2.22% to 20% (the International Financial Reporting Standards (IFRS) apply to the amortisation of assets acquired after December 31, 2016). Depreciation rates can be increased for companies that operate on 16 hour-shifts (25% per each 16 hour-shift). Goodwill cannot be amortised for tax purposes (any goodwill generated since 2017).
Start-up expenses give rise to a tax deduction. Bad debt and interest expenses are generally tax-deductible (conditions apply).
Donations to charities give rise to a tax credit instead of a deduction from the tax base. Fines are not tax-deductible. Expenses incurred abroad for the purpose of earning income in Colombia are deductible up to 15% of the taxpayer's net income.
Most taxes, except for equity and standardisation taxes, are 100% deductible. 50% of the industry and trade tax and its complementary tax can also be deducted (will be credited at 100% as of 2022). 50% of the financial transactions tax can be deducted.
Further deductions/credits include: 100% of fixed assets acquisition; 25% of the investments made for the control and improvement of the environment (tax credit); 120% of the salary payments made to employees who are under 28 years; 100% of the investments made in certain scientific and/or technological projects or in professional training projects.
Tax losses can be carried forward up to 12 years (for those incurred since 2017, indefinitely for losses incurred before). The carryback of losses is not permitted.
Other Corporate Taxes
Until 2021, businesses were subject to an alternative minimum tax of 0.5% (calculated from the net worth of the business in the year immediately preceding the current fiscal year). Some assets, like holdings in Colombian companies, could be excluded from the calculation of net worth. This tax has been abolished as of 2021.

The equity tax (CREE by its acronym in Spanish) was abolished in 2017; however, base excesses (CREE income less CREE minimum base) from previous years continue to be offset against taxable income.

Employers are subject to a payroll tax of 9% on behalf of their employees that make more than ten minimum monthly wages. Social security contributions amount to 28.5% of the gross salary, with approximately 20.5% being borne by the employer. Employers also need to pay a contribution for professional risks, at rates ranging between 0.522% and 8.7% of the monthly salary.

Registration fees apply to documents registered with the Chamber of Commerce (at variable rates between 0.3% and 0.7%) or the Register of Public Deeds (between 0.5% and 1%). Partial exemptions are provided for documents that are subject to both registration and stamp duties or that must be registered simultaneously with both institutions.

An industry and trade tax is applied at municipal level, with rates ranging from 0.2% to 1% of gross receipts derived from carrying out industrial, commercial, and service activities within a municipal territory in Colombia (50% of the tax is deductible as of 2020). Real estate is subject to a municipal tax at rates varying based on the value of the property (and not according to the number of owners or the personal wealth of the taxpayer), usually ranging from 0.5% to 1.2%.

A 0.4% bank transaction tax is levied on withdrawals from chequing and savings accounts and from accounts opened with the Central Bank.

Companies also may be subject to a carbon tax.

Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Colombia Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 10.0 28.2 10.6 9.0
Time Taken For Administrative Formalities (Hours) 255.5 327.5 175.0 218.0
Total Share of Taxes (% of Profit) 71.2 46.8 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Income Tax Progressive tax rate from 0% to 39%. The Colombian tax system is expressed on Tax Value Units, UVT.

For fiscal year 2021, the value of each tax unit is equivalent to COP 36,308.

Up to UVT 1,090 0%
UVT 1,091 to 1,700 19%
UVT 1,701 to 4,100 28%
UVT 4,100 to 8,670 33%
UVT 8,670 to 18,970 35%
UVT 18,970 to 31,000 37%
Over UVT 31,000 39%
Allowable Deductions and Tax Credits
Residents can deduct from compensation mortgage interest paid in Colombia (up to 1,200 UVT tax units in 2021 or COP 43,570,000).
Employees may deduct prepaid medical assistance (up to COP 6,971,000 per year in 2021) and interests paid on educational loans granted by ICETEX (up to COP 3,631,000).
Donations made to certain institutions dedicated to the development of health, education, culture, religion, sports, scientific and technological research, ecology and the protection of the environment, or to social development programmes of general interest are deductible (limits apply).
Deductions are available for dependents, capped at 10% of gross labour income until a maximum of COP 13,942,000 for 2021.
Special Expatriate Tax Regime
There is no special tax regime for expatriates. Non-residents are taxed only on their Colombian-sourced income.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Visit the website of the Ministry of Foreign Affairs for the full list of Double Taxation Agreements
Withholding Taxes
  • Dividends for residents: 7.5% (for profits taxed at corporate level in Colombia) / 31%+7.5% (for profits that have not been taxed at corporate level in Colombia) ;
  • Dividends for non-residents: 10% (for profits taxed at corporate level in Colombia) / 31%+10% (for profits that have not been taxed at corporate level in Colombia)
  • Interest: 4% (residents) ; for non-residents: 5% (on loans granted for the development of infrastructure programs) / 15% (interest related to a loan with a term of one or more years) / 20%
  • Royalties: 2.5% (residents) / 20% (non-residents)
Bilateral Agreement
Spain and Colombia are bound by a Double Taxation Agreement signed in Bogota, on March 31st 2005.
Withholding tax rates under the treaty are: 0/5% for dividends, 0/10% for interest and 0/10% for royalties.
Download the treaty in Spanish.

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Find out more about Taxes and Accounting in Colombia on GlobalTrade.net, the Directory for International Trade Service Providers.

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Actualitzacions: April 2022

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