Taxes in Colombia


Colombia, like any other emerging economy, is facing an increasingly competitive international economic environment, characterized by certain advantages offered to foreign investors regarding taxes and incentives.

Taxes in Colombia can be of the National level or the Regional level. This means that the National taxes will be applicable to all the inhabitants of the country with the same tariffs, meanwhile regional taxes will be determined within a range as judged by the law. This range has a maximum and minimum tariff which authorities in the regions cannot increase. Here is a brief description of the most important taxes:

 

 

Taxes

Definition

Tariff

Income Tax
Income and Windfall Tax
The income tax in Colombia is a national tax and it is considered a single tax, although it has two components: income and windfall. 33%
Sales tax
Sales Tax (VAT)
This is a national tax on supplied sources and on sales and the importation of physical goods. Outside Free trade Zone: The average tariff - 16% can range between 0% and 25%.
Wealth tax
Wealth Tax
This tax is payable by individual and corporate taxpayers whose net worth as of January 1 of 2007 was equal to or more than COPS 3.000.000.000 (2007 base figure), equivalent to approximately US$ 1.3 million, based on a USD $2,200 rate of exchange for 2009. The yearly tariff is 1.2%
Transaction tax
Tax on Financial Transactions
This tax is accrued on every transaction involved with withdrawing resources from checking, deposit or savings accounts, and cashier's checks. Four per thousand (0.004%) of the financial operation value.
Industry and commerce
Industry and Commerce Tax
This tax is levied on industrial, commercial or service activities carried out within the jurisdiction of a municipality or district by a taxpayer with or without a business establishment. It is collected and managed by the municipality or district where the activity is carried out. Ranges between 2 per thousand (0,2%) and 10 per thousand (1%)
Property tax
Property Tax
This tax in Colombia is levied anually on the ownership, usufruct or possession of real estate property located in Colombia. It is collected and managed by the municipality where the property is located. Ranges between 1 per thousand (0,1%) and 16 per thousand (1,6%)


For further information about Taxes in Colombia please download the Chapter of our Legal Framework dedicated to the subject. In this document you will find detailed information about deduction, discounts and other benefits. Visit the following document to get more information on taxes.

 

 

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