Taxes - Accounting

Colombia

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: IVA Value Added Tax
Tax rate: 16%
Reduced tax rate: Reduced rates exist for commercial air transport (10%) and food products(7%).
Insurance products are exempt, products related to medical care, the lease-purchase of property for housing, and lease-purchase financing.
Other consumption taxes: A new tax, applied by the customs service is designated for imports from all countries except for those that have signed trade agreements with Colombia. The taxation is set at 1.2% of the FOB value of the imported products. There are also excise duties levied on cigarettes and certain alcohols.

Corporate taxes

Tax rate

Corporate income tax

33%
A 15% rate applies to companies located in free-trade zone.

Capital gains taxation: Capital gains in Colombia are normally subject to ordinary taxation except for a few items that may be subject to special taxation or exempt from income taxation.
Main allowable deductions and tax credit: Expenses are deductible for depreciation and depletion, net operating losses, payment to foreign affiliates, expenses abroad, certain taxes, certain exchange differences, and certain interests.
Other corporate taxes: Stamp duty, municipal tax, real estate tax, motor vehicle tax, tax on financial movements, equity tax, payroll tax, social security contributions, registration tax also exist.

Individual taxes

Tax rate

Income Tax	Progressive tax rate from 0% to 33%. The Colombian tax system is expressed on Tax Value Units, UVT.
Up to UVT 1,090	0%
UVT 1,091 to 1,700	19%
UVT 1,701 to 4,100	28%
Over UVT 4,100	33%

Allowable deductions and tax credit: Residents can deduct from compensation mortgage interest paid in Colombia; low income employees may choose to deduct either mortgage interest or prepaid medical assistance and educational expenses; some donations made to certain institutions dedicated to development of health, education, culture, religion, sports, scientific and technological research, ecology and the protection of the environment, or to social development programs of general interest are deductible.
Special expatriate tax regime: There is no special tax regime for expatriates.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the website for taxes
Withholding taxes: Dividends: 0/20%/33%, Interest: 0/33%, Royalties: 33%
Bilateral agreement: Colombia and Tunisia are bound by a double taxation treaty: no

Signed	Ratified	Enforced

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Ministry of Finance and Public Credit; Department of Tax and Customs
Other domestic resources: Information about taxes in Colombia

Accounting Rules

Tax year: The fiscal year begins on January 1st and ends on December 31st.
Accounting standards: Colombian GAAP. On 13 July 2009, the Congress of the Republic of Columbia enacted Law No. 1314 concerning accounting, financial reporting and assurance. This law is called the "Law of Convergence" and states an intention to converge Colombian GAAP with international standards beginning from the year 2014 (proposed start year).
Accounting regulation bodies: Contaduria
Accounting reports: The accounting structure should include:
- The balance sheet: Assets (current assets, liquid assets, bad debt allowance, salaries, other, income tax, inventories, expenses incurred, Total current assets), equipment (machinery property, Depreciation), and other assets ;
- The income statement: Revenues, Gross profit, Operating costs, Operating earnings, Total operating costs, Earnings before income taxes, Net income ;
- The operational balances; and
- The annexes.
Publication requirements: The Colombian Commerce Code does not detail the requirements for accounting and the certification of accounts. It is generally found in practice that companies maintain up-to-date ledgers and inventories also annually prepare the documents necessary for a financial analysis (balance sheet, income statement, operational balances, annexes).
Professional accountancy bodies: INCP
Certification and auditing: In Colombia all companies along with the subsidiaries of foreign companies are required to seek a statutory auditor to conduct an annual audit of the financial health of their organization. The auditors must be certified public accountants and must ensure the government the accuracy of the published accounting information. When signing the financial statements they certify that they have been informed of all the required information.
You can contact an external auditor: PricewaterhouseCoopers, Deloitte, KPMG, Ernst & Young.
Accounting news: See "News" on the website of the National General Accounting Office
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