Taxes in Colombia
In Colombia, there are both national and regional taxes. National taxes (income, VAT, excise) apply to all individuals or legal entities with fiscal residency in the country. Regional taxes (industry and commerce, property) are determined by each department or municipality within the parameters established by law.
Below is a brief description of the main taxes levied in Colombia.
| TAX TYPE | DEFINITION | RATE |
|---|---|---|
| Income, Occasional Gains and Dividends | National tax levied on profits derived from a company’s ordinary operations. Occasional gains tax is complementary to the income tax and is levied on profits derived from activities not included in ordinary operations. | Income tax: 35% for 2022. Free trade zones users (with the exception of commercial users): 20% Occasional Gains: 10% Dividends 10% |
| Value Added Tax (IVA) | An indirect national tax on services rendered and the sale and import of goods. | Three rates based on types of goods or services: 0%, 5%, and 19% |
| Consumption Tax | Indirect tax levied on the vehicles, telecommunications, and food and beverage sectors. | 2%, 4%, 8%, and 16% |
| Financial Transactions Tax | Tax on all withdrawals from checking and savings accounts, and on cashier’s cheques. | 0.4% per operation |
| Industry and Commerce Tax | Tax on industrial and commercial activities, or services rendered in municipal or district jurisdictions by a taxpayer with or without a commercial establishment. This tax is determined and collected by the corresponding local authorities. | From 0.2% to 1.4% of company income |
| Property Tax | Tax levied annually on the right of ownership, usufruct, or possession of real property in Colombia. This tax is determined and collected by the municipalities or districts where the property is located. | From 0.5% to 1.6% |
For more information about taxes in Colombia, visit Chapter 7 of our Legal Guide for doing business in Colombia.
