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Business-friendly environment:
Colombia requires all companies to comply with International Financial Reporting Standards (IFRS), also known as NIFF, to ensure compliance is crucial, and violations may result in substantial fines.
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Tax incentives:
Colombia offers a variety of tax incentives, including reductions in taxable base, deductions from payable taxes, and refunds of paid taxes to taxpayers. These incentives involve income tax or value-added tax (VAT), which are the main taxes collected by the Colombian government.
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Specific tax regimes:
In addition to corporate income tax, Colombian companies may also face carbon tax and registration tax. The carbon tax is based on the carbon content of fossil fuels. The registration tax rates vary depending on the circumstances, with rates for documents registered with the Chamber of Commerce ranging from 0.3% to 0.7%, and rates for documents registered at the notary's office ranging from 0.5% to 1%.
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Tax rate reductions for specific companies or sectors:
Certain companies, such as state-owned and mixed economy companies, publishing companies, hotels and theme parks, and non-profit entities, enjoy a 9% income tax rate incentive. Qualified enterprises within free trade zones benefit from a 20% reduced tax rate. Additionally, income from Colombia's rural development, unconventional energy sales, and technological value-added industries and creative activities is exempt from tax.
Tax Info
Enter Dynamic Page- General CIT Rate
- 35 (surcharges may apply)
- CIT Return Due Date
- Between April and May, depending on the tax ID of each taxpayer.
- CIT Payment Due Date
- Large taxpayers pay in three installments, in February, April (with the CIT return) and June. Other companies pay in two installments: the first in May with the CIT return, the second in July.
- CIT Estimated Payment Due Date
- Big taxpayers: 3 installments. Other taxpayers: 2 installments.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 10/0-20/0-20
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 20/20/20
- General VAT Rate
- 19
- General Capital Gain Tax Rate
- 15
- Composite Effective Average Tax Rate
- 32.93%
- Composite Effective Marginal Tax Rate
- 32.59%
Administrative Regions
- AMA - Amazonas Department
- ANT - Antioquia Department
- ARA - Arauca Department
- ATL - Atlántico Department
- BOL - Bolívar Department
- BOY - Boyacá Department
- CAL - Caldas Department
- CAQ - Caquetá Department
- CAS - Casanare Department
- CAU - Cauca Department
- CES - Cesar Department
- CHO - Chocó Department
- COR - Córdoba Department
- CUN - Cundinamarca Department
- GUA - Guainía Department
- GUV - Guaviare Department
- HUI - Huila Department
- LAG - La Guajira Department
- MAG - Magdalena Department
- MET - Meta
- NAR - Nariño Department
- NSA - Norte de Santander Department
- PUT - Putumayo Department
- QUI - Quindío Department
- RIS - Risaralda Department
- SAN - Santander Department
- SAP - Archipelago of Saint Andréws, Providence and Saint Catalina
- SUC - Sucre Department
- TOL - Tolima Department
- VAC - Valle del Cauca Department
- VAU - Vaupés Department
- VID - Vichada Department
Belonging Jurisdiction
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CO - Colombia
Republic of ColombiaLearn MoreRepublic of Colombia -
USAN - Union of South American Nations
Union of South American NationsLearn MoreUnion of South American Nations -
WORLD - Global
EarthLearn MoreEarth
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