GUIA_LEGAL_CHAPTER_7_COLOMBIAN TAX REGIME.pdf

TO DOING
BUSINESS IN
COLOMBIA
LEGAL
GUIDE

This document reflects the valid Colombian
legislation at the date of its development and it seeks
to provide general and basic information of the
Colombian law. This message does not represent or
replace legal counsel of a specific or particular
matter. Such legal counsel must be obtained from
specialized legal services. To that effect, we suggest
that you contact any of the law firms that can be
found in the Investor’s Services Directory located in
the webpage of ProColombia
LEGAL
GUIDE
TO DOING BUSINESS
IN COLOMBIA
www.procolombia.co

02
• Under the Colombian Tax System, the only body who
can create taxes is the Congress of the Republic. There
are taxes at the national level such as income tax for
both corporations and individuals, VAT, GMF, among
others. At the territorial level (departmental and
municipal) there are multiple taxes, which may vary
depending on the jurisdiction in some elements such as
the rate, of which the ICA, the real estate tax (property
tax), and some others that affect certain sectors such as
the consumption of alcohol and tobacco, or state
contracting, are the most important.
• VAT is caused in the import, sale of goods in
Colombia, in the sale or assignment of rights over
intangible assets linked to industrial property, and in
the rendering of services in Colombia or from abroad.
In general, VAT paid on taxable transactions may be
discounted against VAT generated by the responsible
party.
• The accounting under IFRS adopted in Colombia is
the starting point for the determination of the taxable
income tax bases for legal entities and individuals
required to keep accounting records. In any case, tax
rules prevail over accounting rules and establish certain
exceptions to accounting recognition.
• Dividends distributed to non-resident shareholders by
national companies will be subject to a 20% taxation
(in a second tranche) and 35% (in a first tranche) if the
profits from which they come have not been subject to
taxation at the level of the company. Dividends
distributed among national companies are not taxed,
but in the first distribution to another national company
they are subject to a withholding at the source at a rate
of 10%1
transferable to the shareholder, individual or
non-resident, who is the taxpayer of the tax.
• As of 2024, a "mixed taxation" is established for
industrial users of free trade zones, distinguishing two
scenarios for the application of the 20% rate and the
general income rate for legal entities (35%). The 20%
rate is applicable with respect to income obtained from
the export of goods and services, and the general
income rate (35%) is applicable with respect to income
other than that obtained from the export of goods and
services.
However, the Constitutional Court, through release 36
of October 2nd, 2023, indicated that the ruling C-384
of 2023 was promulgated, in which it decided on the
constitutionality of the rule that introduced this treatment
for free trade zones.
COLOMBIAN
TAX
REGIME
Chapter 7
Basic information on the Colombian
tax system for foreign investors.
1
Profits distributed within the business groups, which are in a situation of
control or CHC are not taxed with this withholding tax.

Although the ruling has not been published, and
without prejudice to what it indicates, the Court decla-
red the conditional constitutionality of this new regime
on the understanding that the 20% rate will continue to
apply to those taxpayers who, as of December 13th,
2022, have fulfilled the conditions for obtaining the
benefit. This is a way to protect the constitutional
principles of legitimate trust and good faith and to
promote legal certainty.
However, discussions persist on the reading that
should be given to this rule and its constitutionality, as
well as the effects that will be derived for free zone
users, which should be analyzed once the ruling is
known in its entirety and in the cases of the affected
taxpayers.
• Colombia can be used as an investment platform for
other countries, since it has a CHC regime for which
neither capital gains nor dividends from investments in
foreign companies are taxed, as well as the distribution
of dividends to non-residents.
• The transfer pricing regime is applicable to
transactions that residents have with non-resident
related parties, free zone users, and non-related
parties’ resident in non-cooperative, low or no tax
jurisdictions. In general, the transfer pricing regime
follows the OECD guidelines on this matter.
03
For the purposes of this document, a table of defined terms is presented in the following table.
The following table provides an overview of the main attributes of the Colombian system.
DEFINED TERMS
Income Tax IT
Financial Transaction Tax GMF
National Tax and Customs Directorate DIAN
Value Added Tax VAT
Foreign Controlled Entities FCE
Colombian Holding Corporation CHC
Industry and Commerce Tax ICA
International Financial Reporting Standards IFRS
Organization for Economic Cooperation and Development OECD
National Consumption Tax NCT
Free Trade Zones FTZ
Local Taxes
CONCEPT GENERAL TAX INFORMATION
IT and supplementary capital
gain tax
Taxation
Resident individuals are taxed on their worldwide source income, non-residents are taxed
exclusively on their local source income.

IT and supplementary
capital gain tax
Tax Collection
Tax collection for non-residents is made through withholding tax. In cases where withholding tax
is not applicable, the non-resident is obliged to file an income tax return.
Differential rates*
*Provided that the company complies with the legal conditions.
* From 2023 to 2027, financial entities, insurance companies and stock market commission agents that obtain
taxable income more than COP. 5,000 million will be subject to a 5% surtax on the income tax rate.
Dividends
They are subject to two tax brackets according to the taxation borne by the distributing company;
(i) First bracket: 35%; (ii) Second bracket: varies according to the beneficiary shareholder; (iii)
Second bracket: varies according to the shareholder.
* Entitled to a credit of up to 19%.
NATIONAL TAXES
IT and supplementary
capital gain tax
Capital Gains
It is applicable to any gratuitous act, inheritance, and the sale of fixed assets owned for more
than two years. Rate 15%.
Mechanisms for the avoidance of international double taxation
Colombia has a direct and indirect credit or discount for companies as a unilateral mechanism to
eliminate double taxation on foreign source income obtained by residents.
Agreements to avoid double taxation on income (DTAI) in force
with
Spain, Chile, Switzerland, Canada, Mexico, South Korea, India, Portugal, United Kingdom,
Czech Republic, France, Japan, Italy, and the Andean Community of Nations (Bolivia, Ecuador,
and Peru).
Signed agreements in the process of internal approval
United Arab Emirates (UAE), Brazil, Luxembourg, Netherlands, and Uruguay.
Sector
Financial
Extractive
Hidroelectric
Turism
Exporters (TZF)
%
40%
40% - 50% - 55%
38%
15%
20%
Beneficiary
Individuals
Legal Entity
Permanent Establishments
and non-residents
0%-39%*
0%
20%
Withholding
Tax
10%2
0%-15%
20%
04
2
The withholding is only assumed on the first distribution of dividends and is transferable to the individual or non-resident that ultimately receives the dividends.
This withholding will not be applicable to Colombian holdings nor to distributions between entities that have a situation of control or registered group.

Wealth tax
Tax on Financial
Movements (acronym in
“GMF”)
VAT
National Consumption Tax
(NCT)
National Carbon Tax
Property Tax – Real Estate
Tax
Registration tax
NATIONAL TAXES
• It is payable by individuals, unliquidated estates and foreign companies or entities that do not
file income tax returns.
• It is caused by the possession of liquid assets equal or higher than 72,000 UVT (approx. USD
864,459) as of January 1st of each year.
• From 2023 to 2026, the marginal rate will range between 0.5% and 1.5%. As of 2027, the
maximum rate will be 1%.
• In principle, non-residents are not taxed on direct investments held in Colombia, such as those
held in companies, but they are taxed on investments in real estate.
The following events are taxed (normally at 19%), without prejudice to express exclusions:
• The sale of movable and immovable tangible property.
• The sale or assignment of rights over intangible assets associated with industrial property
(trademarks, patents, and industrial designs).
• The rendering of services in Colombia or from abroad.
• The importation of tangible goods.
• The circulation, sale or operation of games of chance, with the exception of lotteries and
games of chance operated exclusively by internet.
The deductible VAT is established by the VAT paid which is carried against the VAT generated,
for the goods and services acquired necessary to carry out the taxable activity.
VAT paid on the acquisition of fixed assets does not give rise to deductible VAT.
Taxes the provision of mobile telephony, internet and mobile navigation services, data services,
the sale and importation of vehicles, the sale of food and beverages prepared in restaurants,
cafeterias, self-service stores, ice cream parlors, greengrocers, pastry shops and bakeries for
on-site consumption.
Taxes the sale, withdrawal, importation for own consumption or importation for sale of fossil fuels
(including all petroleum derivatives and all types of fossil gas).
The rate is determined depending on the carbon dioxide (CO2) emission factor for each given
fuel, expressed in volume unit (kilogram of CO2eq) per energy unit (Terajoules) according to the
volume or weight of the fuel given in ton, gallons or cubic meters for rates varying between COP
$36 and COP $238.
Industry and Commerce
Tax (ICA)
It is generated by the development of industrial, service, and commercial activities in the
respective municipal or district jurisdictions.
The rates vary depending on the activity developed and established by each municipality.
The taxable base is formed by the gross income received by the taxpayer.
It taxes financial transactions at a rate of 0.4%.
It is collected through financial entities that manage deposit accounts in Colombia.
LOCAL TAXES
This municipal tax is levied annually on the ownership, usufruct, or possession of real estate in
Colombia. The rate is between 0.5% to 1.6% of the value of the property, depending on the
municipality in which the property is located.
This is a departmental tax generated by the registration of acts, contracts, and legal business in
the Public Instruments Registry Offices and/or in the Chambers of Commerce. The rate and
taxable base vary according to the type of act to be registered.
05

The following table summarizes the tax rates and, where applicable, the withholding tax rates for foreign payments:
Income tax
(Corporate)
Tax Rate Foreign payment witholding
35%3
0%-19%-28%-33%-35%-37%-39%
Income tax
(Individuals)
15% 10%
Capital Gains
0%-5%-19% 19%5
VAT
0,4 % 0,4%6
GMF
0,2% to 1,4% --
ICA
4%, 8%, 16% --
Consumption Tax
1%-5%-10%-15%-20%-33%-35%4
0,5% to 1,6% --
Property Tax – Real
Estate Tax
0,1% to 1% --
Registration tax
0% to 3% --
Stamp Tax
The main elements that you should consider as a foreign
investor will be further elaborated below.
7.1. Income Tax
This tax is calculated on the net income obtained by taxpayers
in the taxable period from 1 January to 31 December of each
year, except in extraordinary cases in which a shorter period
is accepted by law.
Unless the tax regulations establish a different recognition, the
determination of the taxable base of the income tax for compa-
nies and individuals obliged to keep accounting records must
consider the value of assets, liabilities, equity, income, costsnd
expenses, in accordance with the technical accounting regula-
tory frameworks in force in Colombia.
7.1.1. Personal taxation criterion
(residence)
A legal person shall be deemed to be resident when
it meets any of the following requirements in
Colombia:
i. Incorporation
ii. Principal place of business; or
iii. Effective place of administration in Colombia.
The effective seat of management of a company is the place
where the business and management decisions necessary to
carry out the company's day-to-day activities are taken.
A resident for tax purposes is a natural person who meets
any of the following conditions:
• Remaining in the country continuously or discontinuously
for more than 183 calendar days, including days of entry
into and exit from the country, during any period of 365
consecutive calendar days.
• Nationals who during the taxable year or period have their
center of vital, economic, or business interests in the country,
unless the majority of their income has its source in the
jurisdiction in which they are domiciled, or the majority of
their assets are located in this jurisdiction or:
- Having been required by the Tax Administration to do so,
they do not prove their status as residents abroad for tax
purposes; or,
- They have tax residence in a jurisdiction classified by the
National Government as a tax haven.
06
3
From 2023, surcharges of 3%, 5%, 10% and 15% were included for the financial and extractive sectors.
4
The rates may be reduced for transactions with residents of countries with which Colombia has signed double taxation treaties, provided they are in force.
5
The provision of services from abroad between companies (B2B) is subject to the collection mechanism known as the "reverse charge mechanism", whereby
the "withholding" is assumed by the resident-payer in Colombia without affecting the gross value of the payment.
6
GMF is debited by the bank from the account of the payer resident in Colombia, this withholding should not affect the flow received by the non-resident.

Accounting Income (Before Taxes)
(+) Permanent differences established in the law
that increase net income
(-) Income that does not constitute income or occasio-
nal profit.
(-) Income equity method income for the taxable year
(-) Income from capital gains net value
(-) Exempt income by application of treaties to avoid
double taxation - CAN, income received by the Colom-
bian holding companies’ regime -CHC and external
The concept and regulation of Significant Economic Presence
(acronym in Spanish “PES”) was introduced by Law 2277 of
2022 as a criterion of real subjection to income tax for legal
entities and individuals not resident in Colombia when they
meet certain conditions that make them have, precisely, a
significant economic presence in the country.
The conditions for the configuration of the PES are:
• That deliberate and systematic interaction is maintained in
the Colombian market, that is, with client(s) and/or user(s)
located in the national territory; and
• That during the previous taxable year or in the current
taxable year, it has obtained or obtains gross income of
thirty-one thousand three hundred (31,300) UVT (USD
$372,197) or more for transactions involving sale of goods
with client(s) and/or user(s) located in the national territory.
The consequence of having PES in Colombia for these foreig-
ners would be the obligation to pay income tax with respect
to the income from the sale of goods and/or rendering of
services in favor of clients and/or users located in the
The income tax of resident legal entities may not be less than
15% of the "Tax Rate Depurated" (TTD). In this sense, the TTD
refers to the minimum percentage on which legal entities
resident in the country must contribute, established at 15%.
For this purpose, the law establishes that the TTD is calculated
by dividing the Imputed Tax (ID) by the Imputed Profit (UD).
In general terms, to verify the TTD, the taxes paid by the legal
entity or the entities of the group in Colombia must be consi-
dered and divided over the accounting profit of the indivi-
dual or the consolidated financial statements of the corporate
group.The adjusted tax is made up of the income tax calcula-
ted by the companies, plus the discounts or tax credits
applied by virtue of Agreements to avoid double taxation
and article 254 of the ET practically, the taxes paid abroad.
In addition, the formula to establish the adjusted tax provides
for the subtraction of income tax on passive income from
controlled entities abroad, which will be calculated by
multiplying the net passive income by the general rate of
Article 240 of the ET (15%).
The tax thus obtained will be weighed against a prot,
which is not the same as the one used for the calculation
of the tax, but a weighted prot. The adjusted prot is equiva-
lent to the accounting or nancial prot before taxes with some
adjustments: However, the adjusted tax and the adjusted
profit are based on certain formulas, not on their natural
concept.
As a rule, Colombian legislation establishes the following as
income considered as income from national sources:
• Those derived from the exploitation of tangible and
intangible goods within the country.
• Those derived from the rendering of services within the
Colombian territory.
• Those obtained from the alienation of tangible and
intangible assets that are in the country at the time of their
alienation.
Likewise, there are other events that qualify as Colombian
source income:
• Interest from credits owned or economically linked to the
country.
• Income from the rendering of technical services, technical
assistance services, consulting services, administration or
management services rendered by related companies in
favor of a resident in Colombia, regardless of whether they
are rendered in the country or from abroad.
• Income from the sale of goods and/or rendering of
services made by non-resident persons or entities not
7.1.2. Income source taxation
7.1.2.1.Signiﬁcant Economic Presence – PES
7.1.3. Minimum tax rate
domiciled in the country with significant economic presence
in Colombia, in favor of clients and/or users located in the
national territory (as from the year 2024).
national territory. For this purpose, the foreigner with PES
would have the option of subjecting himself to the correspon-
ding withholding according to paragraph 8 of article 408
of the Tax Statute (as a general rule 10% on the total value
of the payment), or declare and pay a rate of 3% on the
gross income derived from the sale of goods and/or
provision of digital services, from abroad, sold or rendered
to users located in the national territory.
In addition, the entry into force of the PES may have conse-
quences for nationals who are withholding agents, since
they may be obliged to withhold the withholding tax.
07

income referred to in paragraphs a) and b) of numeral 4
and numeral 7 of article 235-2.
(-) Offsetting of tax losses or excess presumptive income
The permanent differences that increase the tax and the
temporary differences will be the decisive elements to
determine the decrease of the "Depurated Tax Rate"
below 15%. When a company or a group of companies
is below the minimum tax indicated, they must add the
necessary tax to reach the minimum indicated.
7.1.4. Corporate reorganizations,
mergers, and acquisitions M&A
Contributions in cash or in kind made to Colombian
companies, as well as mergers and spin-offs carried
out between Colombian companies, or in which the
beneficiary or acquiring company is Colombian, are
subject to the tax neutrality regime provided that the
legal requirements are met.
Mergers and spin-offs between foreign entities whose
value of assets located in Colombia is less than 20%
are also, as a rule, subject to the tax neutrality regime.
Transactions carried out under the tax neutrality
regime are not considered disposals for tax purposes
and, consequently, are not subject to income tax.
Since 2019, indirect disposals are taxed. Indirect
alienation is understood as the transfer of shares or
rights of foreign entities in any title that in turn own
assets in Colombia, the assets owned in Colombia are
considered indirectly alienated as long as the value of
the assets owned in Colombia represents at least 20%
of the book value or commercial value of the total
assets registered by the alienated foreign company.
The sale of shares in a stock exchange recognized by
a governmental authority is not considered as an
indirect disposal if they are not controlled by more
than 20% by the same beneficial owner.
7.1.5. Income not subject to income tax
The law establishes some special tax treatments that allow
the exclusion of certain income for the determination of
the taxable base.
Among such income are, among others: indemnifications
for damage insurance; indemnifications for destruction or
renewal of crops, and pest control; donations to political
parties, movements, and campaigns; profit in the sale of
shares listed in the Colombian Stock Exchange, owned
by the same beneficial owner, when such sale does not
exceed 3% of the outstanding shares of the respective
Notwithstanding the foregoing, the application of income
not constituting income or occasional gain must be
verified in each case to determine its applicability and
compliance with the tax requirements.
-Intangible assets arising from business combinations, in
general terms, may have limitations for their amortization.
Capital appreciation, goodwill, commercial goodwill, or
mercantile credit will in no case be amortizable for tax
purposes.
Costs and expenses are all expenditures that contribute to
the development of the taxpayer's taxable activities.
Despite their accounting recognition, some costs and
expenses are not accepted or have limitations for their
recognition for income tax purposes:
-Law 2277 of 2022 introduced the prohibition of
deductibility of royalty payments made in cash for the
exploitation of non-renewable natural resources, however
this rule was recently declared unconstitutional by the
Constitutional Court. Thus, there is currently the possibility of
deducting these payments but its application to the taxable
year 2023 and 2024 will have to be studied, taking into
account that the Court did not modulate the effects of its
ruling and a procedure to evaluate the decision based on its
economic impact on the country is currently before the Court.
-Interest is limited to the usury rate certified annually by the
Superintendence of Finance.
-Undercapitalization: only the interest generated by debts,
contracted directly or indirectly with economic related
parties, that do not exceed twice the taxpayer's net worth
determined as of December 31 of the immediately preceding
taxable year, are deductible.
-Costs and expenses abroad related to obtaining taxable
income of Colombian source limited to 15% of the
taxpayer's net income, computed before deducting such
costs or deductions.
-The deduction of royalty payments to foreign economic
partners and free trade zones for the exploitation of an
intangible formed in the Colombian territory is prohibited.
-Expenses originated in technology import contracts are
deductible as long as they are registered before the DIAN.
Amortization expenses not deductible for exceeding the limit
of 20% in the year or taxable period will generate a
difference that will be deductible in subsequent periods at the
end of the useful life of the intangible asset, without
exceeding 20% of the fiscal year cost of the asset.
7.1.6. Limitation on deductible costs and
expenses (corporations)
08

Constructions and Buildings 2,22%
Aqueducts, Silver, and Networks 2,50%
Communication Routes 2,50%
Fleet and Aircraft Equipment 3,33%
Fleet and Railway Equipment 5,00%
Fleet and River Equipment 6,67%
Armament and Surveillance Equipment
Electrical Equipment
10,00%
10,00%
10,00%
Concepts and Assets to Depreciate
Maximum Annual
Depreciation Rate
10,00%
10,00%
12.50%
20.00%
20,00%
20,00%
20,00%
Land Transport Fleet and Equipment
Machinery and Equipment
Furniture and Fixtures
Medical and Scientific Equipment
Bottles, Packaging, and Tools
Computer Equipment
Data Processing Networks
Communication Equipment
For income tax purposes, those who are required to keep accounting records may deduct reasonable amounts for depreciation
caused by the wear and tear of property used in business or income-generating activities, if they have rendered services in the
taxable year or period.
The tax cost of property, plant and equipment and investment property will be the acquisition price plus directly attributable costs
until the asset is available for use.
The annual depreciation rate will be the lower of the rate determined for accounting purposes and the rate established by the
National Government. In the absence of such regulation, the following annual rates shall be applied as the basis for calculating
depreciation.
7.1.7. Depreciation
09

7.1.8. Tax loss carryforwards
7.1.9. Tax Credit
7.1.10. Foreign Controlled Entities (FCE)
7.1.11. Colombian Holding Companies
Tax losses liquidated in a period may be offset with the
ordinary net income obtained in the following twelve (12)
taxable periods.
In the case of merger and spin-off processes, the absorbing
company or company resulting from these processes may
offset with the ordinary net income obtained, the tax losses
incurred by the merged or spun-off companies up to a limit
equivalent to the percentage of participation of the assets of
the merged or spun-off companies within the assets of the
absorbing company or company resulting from the merger
or spin-off process, provided that the entities carry out the
same economic activity.
The tax losses suffered by the absorbing or spun-off company
before the reorganization would also be limited according to
the percentage of participation of the assets and liabilities.
Finally, Colombian law establishes a limit of 3% per year of
the taxpayer's ordinary net income for the origin of certain
non-income income, special deductions, exempt income and
tax discounts.
Regime applicable to individuals and legal entities resident
in Colombia that have, directly or indirectly, an interest equal
to or greater than 10% in the capital of the foreign controlled
entity (FCE or ECE for its acronym in spanish) or in its results.
ECEs are investment vehicles such as companies,
autonomous patrimonies, trusts, collective investment funds,
among others, that meet the conditions to be considered as a
related party/related entity for purposes of the transfer
pricing regime and that are not resident in Colombia;
specifically, to be considered controlled by the Colombian
tax resident.
Taxpayers subject to the ECE regime must, for income tax
purposes, immediately recognize the profit derived from the
passive income obtained by the ECE, in proportion to their
participation in the capital of the ECE or in the results of the
ECE, without having to wait for any type of distribution to
Colombia.
For purposes of this regime, the following are considered
passive income:
• Dividends from companies or investment vehicle;
• interest and financial yields;
• income from the exploitation of intangibles;
• income from the sale of assets;
• income from the sale or lease of real estate;
• income from the rendering of technical, technical
assistance, administrative, engineering, architectural,
scientific, qualified, industrial and commercial services.
The Colombian resident who must recognize taxable income
in application of the ECE regime may request tax credit for
taxes paid abroad in relation to such income.
The Colombian Holding Companies (CHC) regime is
applicable to national companies that have as one of their
main activities the realization and administration of
investments in Colombian or foreign companies. To be
eligible for this regime it is necessary:
i. have direct investments representing at least 10% of the
capital of two companies;
ii. have sufficient human and material resources for the
realization of the corporate purpose; and
iii. communicate to the DIAN the intention to be included in
the regime.
The legislation has contemplated some concepts that can be
directly subtracted from the income tax. In each concept, the
scope of the discount must be reviewed and in no case may
tax discounts exceed the value of the basic income tax.
Some of the main discounts are the following:
• Resident individuals who receive foreign source income
subject to income tax in the country of origin, are entitled to
deduct IT in Colombia, the tax paid abroad, whatever its
denomination, liquidated on those same incomes.
• In the case of income from dividends received from
abroad, the tax to be deducted corresponds to the result of
multiplying the tax rate to which such profits have been
subject in the head of the entity that distributes them or in the
head of its subsidiaries when the company that distributes the
dividends in turn has received dividends from them (indirect
tax credit), by the amount of the dividends or profits at the
time of their distribution.
• The VAT paid on the acquisition, importation, construction
or formation of the aforementioned assets can be deducted
from income tax.
• Donations made to non-profit entities that have been
qualified in the special income tax regime and to
non-taxpaying entities referred to in Articles 22 and 23 of the
Tax Statute shall give rise to a discount of the income tax
equivalent to 25% of the value donated in the taxable year
or period. In no case shall the donations give rise to
deductions.
• Discount of 30% for investments in projects qualified by the
National Council of Tax Benefits in Science and Technology
in Innovation as research, technological development, or
innovation.
• Discount of 25% for investments made in the control,
conservation, and improvement of the environment.
10

Among the benefits of this regime are the following:
• Dividends received by CHC from foreign entities are
exempt from income tax.
• Dividends and premiums distributed by the CHC are
considered foreign source income for the shareholder,
provided they come from income attributable to activities
carried out by non-resident entities.
• Dividends received from investments in foreign entities and
covered by the CHC regime will not be subject to ICA.
However, other activities where the generating event takes
place within the territory of a Colombian municipality will be
subject to such tax.
• CHCs are Colombian residents for the purposes of the
Double Taxation Avoidance Agreements signed by
Colombia.
• Income derived from the alienation of foreign shares will be
exempt from income tax in Colombia.
• The profit obtained by residents in Colombia derived from
the alienation of shares of a CHC will be exempt in the
proportion equivalent to the activities carried out abroad. In
this same proportion, it will be considered foreign source
income for non-resident shareholders of the CHC.
i. Subordinates;
ii. Branches;
iii. Agencies;
iv. Permanent establishments; and
v. Other cases of economic linkage, which include cases
in which the operation is developed between related parties
through unrelated third parties, when more than 50% of the
gross income comes individually or jointly from their partners
or shareholders or when there are consortiums, temporary
unions, joint ventures, and other forms of association that do
not give rise to legal entities, among others.
The Colombian regulations on transfer pricing that came into
force as from taxable year 2004 follow in general terms the
OECD pricing guidelines.
Colombian law establishes that taxpayers may use any of the
following methods to determine the price or profit margin in
transactions between related parties:
- Comparable uncontrolled price
- Resale price
- Added cost
- Transactional operating profit margins
- Profit sharing
The selection of the method will depend on the most
appropriate method according to the functions, available
information, and degree of comparability. Notwithstanding
the foregoing, the legislation has established a particular
application of transfer pricing methods for the purchase of
used fixed assets, unlisted stock purchase and sale
transactions and commodity transactions.
Used fixed assets: The application of the comparable
uncontrolled price method is established through the
presentation of the invoice for the acquisition of the new asset
and the calculation of its depreciation up to the date of the
transaction must be applied, in accordance with the
accounting regulations applicable in Colombia.
Purchase and sale of unlisted shares: Colombian regulations
establish that commonly accepted financial valuation
methods must be used. Under no circumstances is the use of
equity value or intrinsic value as a valuation method allowed.
Commodities: The comparable uncontrolled price method is
established by reference to comparable transactions
between independent parties or national or international
quoted price references, considering essential elements such
as the date or period of quotation agreed between the
parties.
Taxpayers subject to the transfer pricing regime are income
taxpayers and complementary taxpayers who:
i.Carry out operations or transactions with foreign economic
related parties;
ii. Enter into operations with related parties located in a free
zone;
iii. Carry out operations with persons resident in
non-cooperating jurisdictions of low or no taxation or in
preferential tax regimes; and
iv. Permanent establishments of non-residents and branches
in operations or transactions with related parties.
Consequently, obligated taxpayers must determine their
income, costs, deductions, assets and liabilities considering
the conditions that would have been used in comparable
transactions with or between independent parties, i.e., their
transactions must respond to market value criteria and
comply with the arm's length principle.
For income tax and complementary tax purposes, and in
particular for purposes of the application of the transfer
pricing regime, the law considers that there is a linkage in the
following cases:
7.1.12. Transfer pricing
7.1.12.1. Analysis methods and
comparability criteria
11

Regarding penalties, the transfer pricing regime establishes
penalties with respect to the formal obligations of supporting
documentation (local report and master report) and
informative declaration.
In relation to the supporting documentation, penalties are
generated for: (i) untimely submission; (ii) inconsistencies in
the information submitted (errors, content that does not
correspond to what was requested or that does not allow
verifying the application of the regime); (iii) failure to submit;
(iv) omission of information; and (v) correction.
Regarding the information return, penalties are generated
for: (i) untimely filing; (ii) inconsistencies with respect to the
transactions subject to the transfer pricing regime; (iii)
omission of information; and (iv) failure to file.
Finally, non-compliances associated with the
country-by-country report and its notification will be
punishable in accordance with the provisions of article 651
of the Tax Statute in relation to the failure to submit
information within the established deadlines or the
submission of information whose content is incorrect or does
not correspond to what was requested.
It is caused by the possession of liquid assets, as of January
1 of each year, whose value is equal to or greater than
72,000 UVT (approx. USD 864,459).
The liquid patrimony, which is the taxable base of the tax,
results from taking, from the total gross patrimony of the
taxpayer owned on the same date, minus the debts payable
by the taxpayer in force on that date.
They are subject to this tax:
• Individuals and illiquid successions, taxpayers of income
tax and complementary taxes or income tax substitute
regimes.
• Individuals, nationals, or foreigners, who do not have
residence in the country, with respect to their assets owned
directly in the country, except for the exceptions provided for
in international treaties and in domestic law.
• Individuals, national or foreign, who do not have residence
in the country, with respect to their assets held indirectly
through permanent establishments in the country, with the
exceptions provided for in international treaties and domestic
law.
• The illiquid successions of deceased persons without
residence in the country at the time of their death with respect
to their patrimony owned in the country.
• Foreign companies or entities that are not income tax filers
in the country, and that own assets located in Colombia other
than shares, accounts receivable and/or portfolio
investments.
From the year 2023 to 2026, the rate of this tax will oscillate
between 0.5% and 1.5%. As of 2027, the maximum rate
will be 1%.
To determine the value of the net worth, the following rules
are highlighted:
• Shares or quotas of social interest listed on the stock
exchange: updated tax cost. If the intrinsic value is lower, this
value is taken.
• Shares or quotas of interest of companies or entities that
are not listed on the stock exchange: average market
quotation value.
• Shares in "ventures" or "innovative emerging companies":
tax cost, provided that the companies (i) have not been
incorporated for more than 4 years and have main R&D&I
activities, (ii) have received less than $4,400MM during the
7.1.12.2. Penalty regime
Taxpayers who meet the following conditions are considered
as self-withholding taxpayers for income and complementary
taxes:
• That they are national companies or permanent
establishments, and;
• That they are exempt from the payment of social security
contributions and parafiscal contributions, with respect to
their workers who earn a salary of less than 10 SMMLV.
This self-withholding must be liquidated on each payment or
payment on account made to the taxpayer liable for income
tax, and the rate may range between 0.55%, 1.1%, 1.9%,
2.2%, 3.6% and 4.5% according to the type of economic
activity.
Those responsible for the self-withholding must declare and
pay the self-withholdings made in each month, within the
deadlines established by the national government for such
purpose.
The self-withholding shall be applied independently of the
withholding tax.
7.2. Income Tax self-withholding
7.3. Wealth tax
12

the previous 4 years in exchange for at least 5%
participation, (iii) have no taxable net income in the previous
year, (iv) the tax cost of the shares of one or more
non-founding shareholders is at least three times their intrinsic
value based on the net worth of the previous year.
VAT is a national indirect tax levied on the following items,
without prejudice to those expressly excluded:
• The sale of real and personal property.
• The sale or assignment of rights over intangible assets
associated with industrial property.
• The rendering of services in Colombia or from abroad.
• The importation of tangible goods.
• The circulation, sale, or operation of games of chance,
except for lotteries and games of chance operated
exclusively through the internet.
Services rendered from abroad are subject to VAT when the
recipient and/or beneficiary is located in the national
territory, for which there are specific rules that allow
determining when the beneficiary is located in the national
territory.
VAT is not levied on the sale of fixed assets, with the
exception of automobiles and other fixed assets that are
habitually sold in the name and on behalf of third parties.
There are operations classified as exempt (0% rate) or
excluded (no VAT is levied, but VAT paid on inputs must be
treated as a higher value of the cost or expense of the input).
7.4. Value added tax
Persons who carry out sales, services rendered, or imports
operations are responsible for the payment of VAT, as
follows:
• In sales, traders, whether distributors or manufacturers.
• Whoever renders a service that is not catalogued as
excluded from VAT.
• Importers of movable tangible goods that have not been
expressly excluded.
• Service providers from abroad defined by resolution by the
Tax Administration
7.4.1. VAT Payers
Two VAT regimes are contemplated:
• Not liable, which contemplates natural persons: traders,
farmers, artisans and service providers, provided they meet
certain conditions of income, net worth and form of
operation established in the regulation, and,
• Responsible, which covers persons who cannot be
included in the non-responsible regime.
It is comprised of the total value of the transaction, including
the goods and services required for its rendering.
Additionally, there are special taxable bases for certain sales
or service rendering operations.
7.4.2. Taxable Income
The general VAT rate is 19%, but there are reduced rates of
5% and 0% for certain goods and services.
7.4.3. Rate
The person liable for VAT may deduct from the VAT
generated on the provision of taxable goods or services, the
VAT paid on the acquisition of goods, services or imports
other than fixed assets (deductible VAT) that give rise to the
recognition in income tax of costs and/or expenses.
The VAT paid may be deducted:
• In the case of taxpayers who must declare bimonthly,
deductions and deductible taxes may only be accounted for
in the tax period corresponding to the date of their causation,
or in one of the three immediately following bimonthly
periods, and requested in the declaration of the period in
which their accounting has been made.
• In the case of taxpayers who must file quarterly returns,
deductions and deductible taxes may only be accounted for
in the tax period corresponding to the date of their causation,
or in the immediately following quarterly period, and
requested in the return of the period in which they have been
accounted for.
VAT credit balances arising from excess of deductible taxes
due to rate difference that have not been imputed to VAT
during the taxable year or period in which they were
generated, may be requested in compensation or refund
once the obligation to file the income tax return
corresponding to the taxable income tax period in which the
excesses were generated is complied with.
7.4.4. VAT Recovery
13

Most live animals of species used for human
consumption, vegetables, seeds, fruits, and other
agricultural products, fresh or frozen.
Goods such as cereals, flour, cocoa, artisanal
products, salt, natural gas, vitamins.
Certain machinery for the primary sector,
some medical items, among others.
Personal computers of less than 50 UVT (approx.
USD 498) and smart mobile devices (cell phones,
tablets) whose value does not exceed 22 UVT
(approx. USD 2019).
Domestic or imported equipment and elements for the
construction, installation, assembly and operation of
control and monitoring systems necessary to comply
with environmental regulations and standards in
force.
Foodstuffs for human and animal consumption
imported from countries neighboring the
departments of Vichada, Guajira, Guainía
and Vaupés, provided they are intended
exclusively for local consumption in those
departments.
7.4.5. VAT Exclusions
In the case of taxpayers who carry out exempt operations
(0% rate), the balances in favor determined in their VAT
return may be requested in refund every two months.
The VAT paid for the acquisition or importation of capital
goods may be taken as a deduction in the IT, in the period of
acquisition or importation, provided that such benefit is not
used concurrently as a discount in the IT (article 258-1 of the
E.T). It also applies to goods acquired under the financial
leasing modality with exercise of the purchase option at the
end of the contract.
The person obliged for the collection and payment of the tax
is the one who performs any of the generating events, even
when the final consumer is the one who economically
supports this tax.
The following transactions do not cause the tax, but do not entitle to deductible VAT on purchases:
(i.) Excluded goods
Food for human consumption donated to legally
constituted food banks, in accordance with the
regulations issued by the National Government.
Real Estate Sales
14

Food for human and animal consumption,
clothing, toiletries, and medicines for human or
veterinary use, construction materials; bicycles
and their parts; motorcycles and their parts; and
motorcycles and their parts that are introduced
and marketed in the departments of Amazonas,
Guainía, Guaviare, Vaupés and Vichada,
provided that they are intended exclusively for
consumption within the same department and the
motorcycles and motorcycles and motorcycles are
registered in the department. The national
government will regulate the matter to ensure
that the VAT exclusion applies to sales to the final
consumer.
Aviation fuel supplied for domestic passenger
and cargo air transportation services to and
from the departments of Guainía, Amazonas,
Vaupés, San Andrés Islas y Providencia,
Arauca, and Vichada.
Products purchased or introduced to the
department of Amazonas within the framework
of the Colombian-Peruvian agreement and the
agreement with the Federative Republic of Brazil.
Public or private, national, and international
cargo transportation.
Agricultural activities related to the adaptation of
land for agricultural exploitation or related to the
production and commercialization of its
by-products.
Transportation of gas and hydrocarbons.
Public passenger transportation in the
national territory, by land, sea or river.
Domestic air transportation of passengers to
domestic destinations, where there is no
organized ground transportation.
Interest and financial yields from credit
operations and leasing or financial leasing.
(ii.) Excluded services
15

(iii.) Excluded imports
Imports excluded from the tax are specifically indicated by law. Imports not subject to VAT include the import of
machinery for waste treatment and environmental control and monitoring, imports to special customs regime zones,
arms and ammunition for national defense and those mentioned in paragraph a) above.
Medical, dental, hospital, clinical and laboratory
services for human health. Public utilities of energy,
water and sewage, public cleaning, garbage
collection and household gas.
Hotel and tourism services rendered in the
municipalities that are part of certain special
customs regime zones.
Virtual education services for the development of
digital content, in accordance with the regulations
issued by the ICT Ministry, provided in Colombia or
abroad.
Acquisition of software licenses for the commercial
development of digital content, in accordance with the
regulations issued by the ICT Ministry.
Residential internet connection and access
services for strata three.
Education services provided by preschool, primary,
middle, and intermediate, higher, special or
non-formal education establishments, recognized as
such by the Government, and education services
provided by individuals to such establishments.
Provision of web pages, servers (hosting) and
cloud computing.
Repair and maintenance services for vessels and
naval artifacts, both maritime and fluvial, under
the Colombian flag.
7.5.5. Exempt Operations
7.5.6. Tax assessment
There are operations that have a 0% VAT and, therefore,
grant the right to deductible VAT on the acquisition of taxed
goods or services that are directly associated with such
exempt operations. The following are highlighted:
• The export of goods and services, with the conditions
established in the law and regulations, including goods sold
to international marketing companies.
• Tourist services rendered to residents abroad that are used
in Colombia, sold by agencies or hotels registered in the
National Tourism Registry.
• Raw materials, parts, inputs and finished goods that are
sold from the national customs territory to industrial users of
goods or services of free zone or among them, if they are
necessary for the development of the corporate purpose of
such users.
• Internet connection and access services from fixed
networks of residential subscribers of strata one and two.
• The sale of bovine, pork, ovine, caprine meat, certain
poultry, eggs, milk, fish, fresh or refrigerated, carried out by
the producers of such goods.
Likewise, services rendered in Colombia to be used or consu-
med exclusively abroad by companies or persons with no
business or activities in the country are considered exempt
from VAT. Certain substantive and formal requirements must
be met to access the exemption.
The tax is determined by the difference between the tax
generated by the taxable operations and the legally authorized
deductible taxes, as follows:
16

Income from taxable operations by rate
Tax generated (limited to the same rate as VAT generated)
(-) Taxes deductible
= Tax determined as payable
7.6. National Consumption Tax
7.7.2.
Complementary tax on notices and
boards
7.8. Uniﬁed property tax – Real Estate
Tax
7.7. Industry and commerce tax and
complementary tax on notices and
billboards
7.7.1.
Industry and Commerce Tax
The NCT has as a generating event the rendering or sale to
the final consumer or the importation by the final consumer of
the following services and goods:
• The provision of mobile telephony service, internet and
mobile navigation, and data services.
• Sales of some movable tangible personal property domes-
tically produced or imported (automobiles).
• The sale of food and beverages prepared in restaurants,
cafeterias, self-service stores, ice cream parlors, greengro-
cers, pastry shops and bakeries for consumption on site, to
be taken by the buyer or delivered at home, food services
under contract, and the sale of food and alcoholic beverages
for consumption in bars, taverns, and discotheques.
• The INC is caused now of the nationalization of the impor-
ted good by the final consumer, of the material delivery of
the good, of the rendering of the service or of the issuance of
the collection account, cash register ticket, invoice, or equiva-
lent document by the responsible party, to the final consumer.
The following are responsible for the NCT: the mobile
telephone service provider, the food and beverage service
provider, the importer as final user, the seller of the goods
subject to the consumption tax and in the sale of used
vehicles the professional intermediary.
The national consumption tax does not generate taxes deduc-
tible in the VAT.
The rates range between 4%, 8% and 16%, depending on
the corresponding activity or the good sold.
It is a territorial tax levied on gross income obtained from
industrial, commercial, and service activities carried out,
directly or indirectly, by individuals, legal entities or partners-
hips in the respective municipal jurisdictions. There are rules
to determine when an activity is understood to be carried out
in a territorial jurisdiction.
The ICA taxable base is constituted by the total ordinary and
extraordinary income received in the respective taxable
year. Income corresponding to exempt, excluded or non-sub-
ject activities, as well as refunds, rebates and discounts,
exports and the sale of fixed assets are not part of the taxable
base.
The rate of this tax is defined by each of the municipalities
within the following ranges, delimited by law:
• For industrial activities, from 0.2% to 0.7%.
• For commercial and service activities, from 0.2% to 1.4%.
This tax is 100% deductible, if it has a causal relationship
with the taxpayer's income-producing activity.
It is a territorial tax, complementary to the ICA, whose
generating fact is the placement of billboards, notices, and
boards in the public space. The tax is liquidated and collec-
ted from all individuals, legal entities or partnerships that
carry out industrial, commercial, and service activities in the
corresponding municipal jurisdictions, who use public space
to advertise or publicize their business or trade name through
billboards, notices, or boards.
The taxable base of this tax is the amount payable for ICA
and the rate is 15%.
This tax is levied on the ownership, possession or usufruct of
real estate located in urban, suburban, or rural areas, with or
without buildings.
Owners, possessors or usufructuaries of real estate in the
respective municipal jurisdiction must pay this tax.
The taxable base of the Unified Property Tax will be the
cadastral appraisal, or the self-assessment when the annual
declaration of the unified property tax is established.
The applicable rate depends on the conditions of the proper-
ty, which in turn depends on factors such as its built area,
location, and destination. The rate ranges between 0.5%
and 1.6%, considering the economic destination of each
property.
This tax is 100% deductible, if it has a causal relationship
with the taxpayer's income producing activity.
17

Be a natural person that develops a
business activity or a legal entity whose
shareholders are natural persons,
national or foreign, who are tax
residents in Colombia.
If one of the individual person shareholders
has one or several companies or
participates in one or several companies,
registered in the Tax, the maximum income
limits will be revised on a consolidated basis
and in proportion to its participation.
To have obtained in the previous taxable year
gross ordinary or extraordinary income of less
than 100,000 UVT (approx. - USD 1,200,637).
If one of the individual shareholders has a
shareholding of more than 10% in a company
registered in the Unified Tax, the maximum income
limits will be revised on a consolidated basis and in
proportion to its shareholding.
7.9. Registration Tax
This tax is levied on the registration of acts, contracts or legal
business before the chambers of commerce and before the
offices of registration of public instruments.
Generally, the taxable base corresponds to the value
incorporated in the document containing the act, contract or
legal business. However, this may vary depending on the
act. For example, in the case of acts that imply the increase
of the subscribed capital of a company, the taxable base is
constituted by the total value of the respective increase.
On the other hand, in documents containing acts without
amount, such as the consolidation of branches of foreign
companies, the taxable base is determined according to the
nature of the act to be registered. Likewise, in the case of acts
involving real estate, particular rules will be followed depen-
ding on the act and the value, having as a rule, as a
minimum value, the cadastral appraisal.
The tax rate depends on the type of act (with or without
amount) and the entity where the registration is made (Public
Instruments Registry Office or Chamber of Commerce). Thus,
the rates are in the range of 0.1% to 1%.
When an act, contract or legal business must be registered
both at the public instruments registry office and at the cham-
ber of commerce, the tax must be settled and paid at the
public instruments registry office and will be imputed to the
tax payable for the commercial registry administered by the
Chamber of Commerce.
7.10. Stamp tax
The stamp tax is caused by the subscription of documents
elevated to public deed inwhich the sale of real estate whose
sale value exceeds 20,000 UVT (approximately USD
$240,127 for 2024) is recorded.
The tax establishes rates of 0%, 1.5% and 3%, depending
on the value of the sale of the real estate, and its taxable
base is comprised by the value of the real estate, from
20,000 UVT (approximately USD $240,127 for 2024)
onwards.
7.11. Uniﬁed tax under the simple
taxation regime – SIMPLE REGIME
To boost formality and simplify compliance with tax obliga-
tions, Law 2010 of 2019 created the Unified Tax under the
Simple Taxation Regime - SIMPLE ("Unified Tax").
The Unified Tax is an optional system of integral determina-
tion that replaces the income tax and complementary taxes,
consumption tax, industry and commerce tax and comple-
mentary taxes, for taxpayers who voluntarily join this regime.
Companies and individuals who decide to apply the Unified
Tax must make the request before February 28 of each year
by updating their RUT.
Taxpayers of the Unified Tax are individuals and legal
entities that obtain income susceptible of increasing their
equity and that meet all of the following conditions:
18

Additionally, taxpayers of the Unified Tax may be
liable for VAT or NCT.
Taxpayers of the Unified Tax are not subject to
withholding at the source and are not obliged to make
withholdings and self-withholdings, except for
withholdings for labor payments, and must pay a
bimonthly advance payment of the Unified Tax.
7.12. GMF
The GMF is a tax that is caused by the realization of financial
transactions through which resources deposited in checking
or savings accounts, as well as in deposit accounts in the
Banco de la República and the drawing of cashier's checks
are disposed of. Since it is an instantaneous tax, it is caused
at the moment in which the resources subject to the financial
transaction are disposed of and it is directly debited by the
bank or financial entity that manages the bank account.
The rate is 0.4% of the total value of the financial transaction
through which the resources are disposed of.
The GMF is deductible from the taxpayer's income tax at
50% of the amounts paid for this tax, regardless of whether
or not they have a causal relationship with the taxpayer's
income-producing activity.
The collection of this tax is made through withholding at the
source, which oversees Banco de la República and the
entities supervised by the Financial Superintendence of
Colombia or of Solidarity Economy, in which the respective
checking, savings, deposit, collective portfolio accounts are
located or where the accounting movements that imply the
transfer or disposition of resources are made.
The law establishes a series of operations or transactions that
are exempt from this tax, therefore the analysis must be
individualized.
If a shareholder is a director of other
companies, the maximum income limits will
be reviewed on a consolidated basis with the
companies managed by the shareholder.
Foreign legal entities or their permanent
establishments, companies engaged in
factoring, asset management, financial
consulting, certain energy activities, among
others, are not eligible for this system.
The company must be up to date with its national,
departmental, and municipal tax obligations and its
obligations to contribute to the comprehensive social
security system. They must also be registered in the
Single Tax Registry (acronym in Spanish “RUT”) and
have electronic signature and electronic invoice
mechanisms.
The Unified Tax rate would depend on the annual
gross income and the business activity as
observed, ranging between 2.0% and 14.5% on
the gross, ordinary, and extraordinary income
received during the corresponding taxable year.
The rate will depend on the activity developed
and the level of income.
19

STANDARD SUBJECT
National Tax Statute
(Extraordinary Decree 624 of 1989).
It establishes the elements of the tax (active subject, passive
subject, taxable event, taxable base, rate, tax exemptions).
Income and Complementary Tax: regulates the admissible
deductions; tax residence; the transfer pricing regime; the
occasional gains regime, among others.
Value Added Tax VAT: establishes the persons responsible for
VAT, the rate applicable to certain goods and services,
exemptions and exclusions, the requirements to present
deductions, the common regime, the simplified regime, the
regime for import and export of goods, the calculation of
proportionality, among others.
Tax on financial movements GMF: determines the generating
events, applicable exemptions and withholding agents.
It also contains the main formal (procedural) aspects
associated with compliance with tax obligations:
• Withholdings
• Tax procedure
• Penalties for non-compliance with tax obligations
Law 223 of 1995
Law 14 of 1983
Law 14 of 1983
It establishes detailed rules on the essential elements of the main
territorial and departmental taxes, such as:
• Property Tax.
• Industry and Commerce Tax (ICA).
• Excise tax on liquor.
• Cigarette tax
Law 84 of 1915
Regulates the powers granted to the Municipal Councils and
Departmental Assemblies in the management of territorial
taxes.
Law 633 of 2000 Modifies national taxes (income tax, VAT, GMF).
Regulatory Framework
It contains the main rules related to tax rationalization,
pointing out among others:
• Goods that do not cause VAT;
• Goods that are excluded from VAT;
• Imports exempt from VAT.
20

STANDARD SUBJECT
Law 788 of 2002
Establishes modifications to the tax procedure regime (tax
regimes, penalty procedures, VAT exempt goods, tariffs,
among others).
Law 1430 of 2010
Modifies the generating event and the GMF exemptions.
Modifies aspects related to taxpayers in territorial taxes.
Law 1607 of 2012
Introduces several changes to the entire National Tax Statute.
It modifies the registration tax; creates the consumption tax and
modifies the gasoline and ACPM tax regime, among others.
Decree 3026 of 2013
Introduces regulations on permanent establishments in
Colombia.
Decree 3027 of 2013 Introduces thin capitalization regulations in Colombia.
Decree 3028 of 2013
It introduces the regulations regarding tax residency for
individuals and foreign entities considered nationals because
they have their effective administrative headquarters in
Colombia.
Decree 3030 of 2013 Introduces amendments to the transfer pricing regulations.
Law 1739 of 2014
Introduces some modifications to the GMF; creates the wealth
tax; introduces some modifications to the income tax.
Law 1753 of 2015
Whereby the National Development Plan 2014-2018 "Todos
por un Nuevo País" (All for a New Country) is issued.
Decree 1050 of 2015
By which errors in articles 21,31,41,57,70 of Law 1739 of
2014 are corrected.
21

STANDARD SUBJECT
Decree 1123 of 2015
Whereby Articles 35, 55, 56, 57 and 58 of Law 1739 of
2014 are regulated, for application before the U.A.E.
National Tax and Customs Directorate (DIAN).
Decree 2452 of 2015
Whereby Articles 53 and 54 of Law 1739 of 2014 are
regulated.
Decree 1625 of 2016
Sole regulatory decree on tax matters (it has been amended and
supplemented by nearly 27 decrees to date).
Some relevant amending decrees are:
• D. 2201/2016: New special income self-withholding.
• D. 1998/2017: Regulates tax reconciliation, the purpose of which
is to control the differences that may arise between the new accounting
frameworks and what is provided for in the Tax Statute.
• D.2150/2017: Special tax regime and tax benefit for donations.
Law 1819 of 2016
Whereby a structural tax reform is adopted, the mechanisms
for the fight against tax evasion and avoidance are
strengthened, and other provisions are enacted.
Law 2010 of 2019
Whereby rules are adopted for the promotion of economic
growth, employment, investment, strengthening of public
finances and the progressiveness, equity, and efficiency of the
tax system, in accordance with the objectives that on the matter
drove Law 1943 of 2018 and other provisions are enacted.
Law 2155 of 2021
Whereby the social investment law is enacted, and other
provisions are enacted.
Law 2277 of 2022
Whereby a tax reform for equality and social justice
is adopted and other provisions are enacted.
22

STANDARD SUBJECT
Decree 2147 of 2016, Decree 1165 of 2019 and Decree 278
of 2021.
Decree 780 of 2008 Whereby Article 97 of Law 489 of 1998 is regulated.
FREE TRADE ZONES
The Ministry of Commerce, Industry and Tourism issued
Decree No. 2147 of December 23, 2016, whereby the free
zones regime is modified and other provisions on customs
matters are issued. This new regulation repeals Decrees
1767 of 2013, 753 of 2014, 2682 of 2014, 1300 of 2015,
2129 of 2015, 1275 of 2016 and 1689 of 2016, as well as
several articles of Decree 2685 of 1999.
It points out the special procedures for users within the free
zones.
It establishes the necessary requirements for the declaration
of existence of free zones, among other provisions.
23

Address:
Phone:
Web page:
Calle 92 #11- 51 Piso 4, Bogotá Bogotá, D.C. Colombia
+57 (601) 326 6999
https:/
/www.garrigues.com
24

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