Chapter 7 provides an executive overview of the main regulatory areas that an investor or company should consider when structuring and operating businesses in Colombia, covering both tax and accounting matters, as well as customs and foreign trade matters.
From a tax perspective, the chapter explains the IFRS accounting framework and its reconciliation with taxable income, the main national and local taxes (income tax, capital gains tax, dividends tax, VAT, and wealth tax), formal obligations (RUT, electronic invoicing, exogenous information reporting, and ultimate beneficial owners), and Colombia’s network of double taxation agreements (DTAs), together with the rules governing permanent establishments and transfer pricing.
From a customs and foreign trade perspective, the chapter describes Colombia’s trade agreements currently in force, the competent authorities (DIAN, MinCIT, among others), the procedures and modalities for importing and exporting goods and services, special customs regimes and programs (free trade zones, Plan Vallejo, International Trading Companies, and Authorized Economic Operator), the foreign exchange implications of these transactions, and the trade defense measures available against unfair trade practices.
INCOTERMS, delivery terms, and the logistics of the transaction are defined.
The tariff subheading is identified to determine the applicable duties, taxes, and restrictions.
International shipment of the goods and notification to the customs authority upon arrival in Colombia.
The import declaration is filed with the customs authority, and the applicable duties and taxes are paid.
Customs inspection—physical and/or documentary—and release of the goods once they have been cleared through customs.
Colombia has an extensive network of trade agreements and double taxation treaties connecting the country with strategic economies across the Americas, Europe, and Asia, facilitating trade, strengthening competitiveness, and providing greater certainty and predictability for international investment.
In this chapter
Chapter 07 contents
7.1 Accounting Framework: IFRS and Tax Accounting
IFRS frameworks according to company size (Groups 1, 2, and 3) and reconciliation between accounting profit and taxable income.
7.2 Taxation in Colombia: Main Taxes
Income tax, capital gains tax, dividend tax, withholding tax, VAT, wealth tax, and local taxes.
7.3 Formal Tax Obligations
Taxpayer Registration (RUT), invoicing, filing of tax returns, exogenous information reporting, and ultimate beneficial ownership reporting.
7.4 Double Taxation Agreements (DTAs) and International Taxation
Overview of DTAs in force, permanent establishment, significant economic presence, and the transfer pricing regime.
7.5 Customs and Foreign Trade: Colombia’s Trade Integration
Trade agreements currently in force, competent authorities (DIAN, MinCIT), and key concepts related to origin, tariff classification, and customs valuation.
7.6 Import/Export Regimes and Procedures
Customs user registrations, procedures and modalities for importing, and modalities and requirements for exporting goods and services.
7.7 Special Programs and Regimes
Free Trade Zones, Plan Vallejo, International Trading Companies, and Authorized Economic Operator (AEO).
7.8 Foreign Exchange Reporting and Implications
Transactions subject to mandatory channeling through the foreign exchange market, repatriation of export proceeds, and sanction risks arising from non-compliance.
7.9 Trade Defense Measures
Anti-dumping duties, countervailing measures, and safeguards against unfair or subsidized imports.
Take This Chapter with You
Download Chapter 06 as a PDF, or download the complete guide
We are part of your team
PROCOLOMBIA is the entity in charge of promoting Exports, International Tourism, Foreign Direct Investment and the Country Brand, in order to position Colombia in the world. Get to know the national and international network of offices, where you will find comprehensive support and advice.