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Colombia

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Tax authorities

Dirección de Impuestos y Aduanas Nacionales
Ministerio de Hacienda y Crédito Público, Carrera 8 # 6 - 64 Bogotá D.C.
Tel: +57 1 3 81 17 00
Website: www.dian.gov.co

Tax rates at a glance

(As of September 2009) 

Corporate income tax rate (%) 33
Capital gains tax rate (%) 33
Branch tax rate (%) 33

Withholding tax (%)
Dividends 0/20/33(a)
Interest 0(b)
Royalties 33
Technical services, technical assistance and consulting services 10(c)
Branch remittance tax 0

Net operating losses (years)
Carryback 0
Carryforward Unlimited(d)

(a) Dividends paid to nonresidents on or after January 1 2007 are not subject to tax if the dividends were paid out of profits that were taxed at the corporate level. If the dividends were not taxed at the corporate level, dividends paid to nonresidents are subject to withholding tax at the regular corporate income tax rate of 33%. A 7% rate applies to dividends declared in the 2006 and prior tax years that were reinvested in Colombia and subsequently remitted to nonresidents within five years after the date of reinvestment. If such dividends are reinvested for a period of five years or more, they are not subject to tax. A 33% rate applies to dividends paid out of untaxed profits even if the dividends are reinvested. Dividends paid between domestic corporations are not subject to tax if the company generating the profits out of which the dividends are paid is taxed on these profits in Colombia (temporal differences can affect this calculation). Otherwise, the dividends are included in the income tax return of the recipient of the dividends and taxed at the regular corporate income tax rate of 33%. A 20% withholding tax is imposed on dividends paid to residents if the taxpayer is required to file an income tax return; otherwise, the withholding tax rate is 33%.
(b) Interest paid to qualified foreign financial entities on specified loans is deemed to be foreign-source income and is accordingly exempt from withholding tax.
(c) This withholding tax applies to consulting services, technical services and technical assistance services rendered by nonresidents in Colombia or from abroad.
(d) Beginning with the 2007 tax year, tax losses may be carried forward with no limitation. Restrictions apply to the transfer of losses with respect to spin-offs or mergers.

Source: Ernst & Young

Colombia

Ximena Zuluaga and Ricardo Ruiz
Ernst & Young
Colombia

Ximena Zuluaga and Ricardo Ruiz of Ernst & Young comment on the recent tax reform bill submitted to Congress, its impact on foreign investment and its interaction with existing investment incentives and protection measures.

[Show full article]

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See also

Colombia
Latin America (Regional Rankings)

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