Colombia: Business Environment
0% on tourism, if rendered to non-residents 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. A "three days without VAT campaign" also applies: each taxable year, during three days, certain groups of goods (such as clothing, appliances and school supplies) are VAT-free. This applies to domestic purchases and is subject to certain conditions, such as the method of payment, supported by an electronic invoice, price and number of units per buyer.
An industry and trade tax is applied at the 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. 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. Furthermore, taxes are levied on plastic bags (COP 50) and on the sale, freely or onerously, of transformed products based on psychoactive or non-psychoactive cannabis (16%).
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.
Income Tax | Progressive tax rate from 0% to 39%. The Colombian tax system is expressed on Tax Value Units, UVT. For fiscal year 2022, the value of each tax unit is equivalent to COP 38,004. |
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% |
Dividends subject to tax at the corporate level will be subject to the following rates on the individual's tax return | UVT 0 to 300: 0% Abobe UVT 300: 10% |
Dividends not subject to tax at the corporate level | 35% flat rate + the net income resulting from subtracting such tax from the gross income will be subject to an additional tax according to the above table |
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Latest Update: May 2024