Colombia New 15% minimum taxJanuary 2023
A substantial tax reform enacted in Colombia in December 2022 includes measures that affect both resident and nonresident companies.
Although most of the changes apply as from 1 January 2023, some measures have a later effective date.
Colombia Italy Tax AgreementNovember 2021
The 2018 double tax agreement, DTA, between Colombia and Italy entered into force on October 6, 2021 applying from January 1, 2022.
According to the DTA the tax withholding rate for dividends is 5% when the recipient holds at least 20% of the paying company, 15% in most other cases.
The withholding rate for payments of royalties is 10%. For payments of interest the rate is 0%/5%/10%.
Colombia Electronic InvoicesMay 2018
Starting January 1, 2019 companies using at present paper invoices will have to switch to issuing electronic invoices.
Companies defined by the Colombia/n tax office as giant companies will have to use the electronic invoices earlier, starting September 1, 2018.
Colombia Ra Withholding 2017January 2017
Starting January 1, 2017 the new tax withholding rate for payments of interest and royalties to nonresident companies by Colombian companies was reduced from previous 33% to 15%.
Colombia New Tax Heavens ListOctober 2014
The Colombian ministry of treasury published on October 6, 2014 the new list of tax heavens.
10 countries and jurisdictions were excluded from the previous list of tax heavens due to participating in effective exchange of tax information treaties.
The list of the 10 excluded includes inter- alia Cyprus, Bermuda, BVI, Guernsey and Isle of Man.
Colombia Tax Heavens ListingNovember 2013
The finance ministry issued on October 7, 2013 a new list of tax heavens.
The list does not include seven countries, e.g. Qatar and UAE due to present negotiations to sign exchange of tax information treaties.
If such an agreement is not signed by any of the seven countries by October 7, 2014 the country would be added to the Colombian tax heaven listing.
Colombia Mexico Tax TreatyAugust 2013
The double tax treaty of 2009 between the two countries entered into force on July 14, 2013.
The treaty will apply in Mexico starting 1.1. 2014. In Colombia the treaty will apply starting 1.1.2014 for income tax matters and from 11.7.13 for other tax matters.
According to the treaty The tax withholding rate for interest is 5%/10% and 10% for payments of royalties.
Dividends are taxed only in the residence country of the recipient.
In general double tax treaties between two countries are boosting mutual investments between the countries offering reduced tax withholding rates from payments of dividends, interest and royalties.
The tax treaty often includes an exchange of tax information clause and definition of a permanent establishment for activities carried in the other country.
It also clarifies certain cross border tax issues.
E.g the treaty would define in what country tax is to be paid when a service supplier/consultant from country A provides services in country B.
In some treaties there is a tax credit under certain terms. E.g. an exemption to a consultant from country A of X dollars per each day of staying in country B in order to supply the taxable services.
Colombia Switzerland DTA Entry into ForceJuly 2011
The original double tax treaty which was signed on September 26, 2007 has been approved by both countries and will be applicable from January 1, 2012.
The DTA includes reduced tax withholding rates for payments of interest, dividend and royalties between the two countries. At present the DTA has a restricted article on the exchange of tax information. New negotiations are planned to revise the administrative assistance in tax matters in line with international standards.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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