Colombia

Overview

Last reviewed - 07 July 2020

Colombia, a constitutional republic in Northwest South America with coasts on the Pacific Ocean and the Caribbean Sea, was established in 1886. It is divided into 32 departments and one capital district. Colombia's capital is Bogotá. The official language is Spanish, and the currency is the Colombian peso (COP).

Colombia experienced an accelerated period of growth between 2002 and 2013, and such growth have been maintained until 2019, mainly due to improvements in domestic security, rising commodity prices, and favourable economic market policies. Foreign direct investment experienced an increase in the first semester of 2019 of 20.1%, reaching 4.9 billion United States dollars (USD). The Colombian government has entered into several free trade agreements with European and Asian partners. Currently, the United States and the European Union have been the most important trading partners in services and good exportation and reaching an important rise of foreign direct investment.

PwC began its professional activities in Colombia in 1947. In Colombia, PwC provides assurance, advisory, tax, and legal services. PwC Colombia is organised by industry, with a specific focus on telecommunications, technology, media and entertainment, banking and capital markets, insurers, energy, mining and utilities, pharmaceuticals, engineering and construction, industrial manufacturing, retail and consumer, transportation and logistics, and government.

PwC Colombia tax professionals focus on tax consulting, tax structuring, tax compliance, transfer pricing, trade and customs, as well as legal services, including corporate and commercial law, labour law, due diligence, intellectual property, and the exchange rate regime.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

The nominal rate for FY 2021 is 31%, this rate will decrease to 30% in 2022

Corporate income tax (CIT) due dates
CIT return due date

Between April and May, depending on the Tax ID of each taxpayer.

CIT final payment due date

Depending on the type of taxpayer, CIT payment may be due between April and May with the CIT return or in July as a third instalment.

CIT estimated payment due dates

Large taxpayers: Three instalments.

Other taxpayers: Two instalments.

Personal income tax (PIT) rates
Headline PIT rate (%)

39

Personal income tax (PIT) due dates
PIT return due date

The exact deadline is determined by the last two digits of the tax ID number of the taxpayer. Tax return deadlines start in August and end in October of the year following the taxable year.

PIT final payment due date

The due date for filing the return.

PIT estimated payment due dates

NA

Value-added tax (VAT) rates
Standard VAT rate (%)

19

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: between 1% and 20%

Non-resident: * / 20 /20

* See the Withholding taxes section of Colombia's corporate tax summary.

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

10

Individual capital gains tax rate (%)

If the assets were held for two or more years, the gain will be taxed as a capital gain at a 10% flat rate.

If the assets were held for less than two years, the gain will be taxed as ordinary capital income (31% for FY 2021)

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

1

Inheritance and gift tax rates
Inheritance tax rate (%)

10

Gift tax rate (%)

10

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.