Invierta en Colombia - Trabajo, Compromiso e Ingenio

TAX

DEFINITION

TARIFF

Income and Windfall Tax

The income tax in Colombia is a national tax and it is considered a single tax, although it has two components: income and windfall.

33%

Sales Tax (VAT)

This is a national tax on supplied services and on sales and imports of physical goods.

The average tariff - 16% can range between 0% and 25%.

Wealth Tax

This tax is payable by individual and corporate taxpayers whose net worth at January 1 of 2011 was equal to or more than COP 3.000.000.000 (2010 base figure), equivalent to approximately US$ 1.5 million, based on a $2,000 rate of exchange for 2011.

The yearly tariff is:

-    2,4% if the net worth is between COP $3.000 million and COP $5.000 million (US$ 1.5 – US$ 2.5 million)

-    4,8% if the net worth exceeds COP $5.000 million (US$ 2.5 million)

Tax on Financial Transactions

The tax is accrued on every transaction aimed at withdrawing resources from checking, deposit or savings accounts, and cashier checks.

Four per thousand (0.4%) of the financial operation value.

Industry and Commerce Tax (Regional)

This tax is levied on industrial, commercial or service activities carried out within the jurisdiction of a municipality or district by a taxpayer with or without a business establishment, and it is collected and managed by the municipality or district where the activity is carried out.

Ranges between 2 per thousand (0,2%) and 10 per thousand (1%)

Property Tax (Regional)

This tax in Colombia is levied annually on the ownership, usufruct or possession of real estate property located in Colombia, and it is collected and managed by the municipality where the property is located.

Ranges between 1 per thousand (0,1%) and 16 per thousand (1,6%)