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Colombia
Overview
Last reviewed - 22 July 2024Colombia, 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 (%) |
35 |
| 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 (%) (Dividends/Interest/Royalties) |
Resident: Between 0% and 20% Non-resident: 20 / 20 / 20 * See the Withholding taxes section of Colombia's corporate tax summary. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
15 |
| Headline 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 15% flat rate (recapture rules are applicable). If the assets were held for less than two years, the gain will be taxed as ordinary capital income (up to 39% for FY 2023). |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
1.5% until 2026; 1% 2027 onwards |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
15 |
| Headline gift tax rate (%) |
15 |
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