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Colombia

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Tax authorities

Dirección de Impuestos y Aduanas Nacionales (DIAN)
Carrera 8 No 6 – 64 Edificio San Agustín
Bogota
Tel: + 57 1 325 6800
Website: www.dian.gov.co

Tax rates at a glance

(As of September 2012)

Corporate income tax rate 33%
Capital gains tax 33% (a)
Branch tax 33% (b)
Withholding tax
  Dividends 0% 33% (c)
  Interest 0% 14% 33% (d)
  Royalties 33% (e)
  Branch remittance tax 0%
Net operating losses (years)
  Carryback 0
  Carryforward Unlimited
  1. Capital gains derived from the sale of assets held for two years or more are subject to capital gains tax. Otherwise, gains are treated as ordinary income.
  2. Branches are taxed at the same rates as domestic companies. There is no branch remittance tax.
  3. Dividends paid to a foreign company or entity not domiciled in Colombia may be remitted abroad free of tax if the profits from which the dividends are paid already have been taxed at the corporate level. Otherwise, tax is imposed at the 33% corporate tax rate.
  4. The rate is 33% if the loan term does not exceed 12 months; otherwise, the rate is 14%. Interest derived from the following is exempt: short-term import credits and overdrafts; credit to finance or pre-finance exports; credit obtained by financial corporations and authorized banks; credit for trade transactions obtained through financial corporations or authorized banks; and credit obtained by foreign, mixed or local companies whose activities are considered beneficial to national economic development under guidelines set by the National Council on Economic and Social Policy.
  5. Royalties paid for the exploitation of software are subject to a 33% withholding tax, but only on 80% of their amount.

Tax

Colombia's return to investment grade status, healthy economic growth and a safer and more stable environment would have meant smooth sailing for the South American country if it were not for the political infighting that is stalling key economic reforms, ... [more]

Led by Pedro Sarmiento, Deloitte's tax and legal departments comprise 152 professionals. The firm provides its clients, for example, companies from the energy, manufacturing and financial services sectors, a range of integrated tax services, including ... [more]

Ernst & Young's tax practice, which comprises more than 140 professionals, is headed by the highly respected adviser Andres Parra, who recently joined the firm. He also leads the transfer pricing group, which focuses on the mining and pharmaceutical ... [more]

Led by Juan Pablo Murcia and comprising seven partners, KPMG's tax practice advises several multinational companies such as General Motors, HP, Johnson & Johnson, Kimberly-Clark and Chevron on the full range of tax services. One highlight of the firm's ... [more]

Baker & McKenzie's tax practice, led by Jaime Vargas Cifuentes, has added more multinational clients such as Chevron, ExxonMobil, Endesa, Telefónica, and Abbott Laboratories. "Baker & McKenzie has come back with a dynamic tax practice after several years ... [more]

Arturo Sanabria, former vice president of legal for Allianz in Colombia, is Godoy & Hoyos Abogados' newest addition to its tax practice as of May 2012. The tax team, which is led by Catalina Hoyos and Juan Pablo Godoy, covers tax planning, tax compliance, ... [more]

Mauricio Plazas Vega Abogados is a firm mainly dedicated to tax law and has a 13-member team. The firm's practice, which is active in indirect tax, corporate tax, and tax disputes, advises a variety of industries but it is particularly focused on the ... [more]

Led by Martin Acero and Carolina Rozo, Prieto Carrizosa's tax practice is active in indirect tax, corporate tax, and tax controversy. The firm has also strengthened its transfer pricing practice, teaming up with Charles River Associates, the global economic ... [more]

Tax law firm Quiñones Cruz Abogados, headed by founding partners Lucy Cruz de Quiñones and Antonio Quiñones Montealegre and staffed with two other partners and nine fee earners, is one of Colombia's biggest tax teams. The firm counsels domestic and international ... [more]

Headed by founding partner Paul Cahn-Speyer, the tax practice of Cahn-Speyer Paredes & Asociados, is small but well-respected. The tax team provides indirect tax, corporate tax, transfer pricing and tax dispute advice to domestic and international clients. ... [more]

See also

Colombia
Latin America

Firm contact details