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{{Short description|none}}
{{Copy edit|date=October 2010}}
{{GOCEinuse}}
:''See [[Government of Colombia]] for a broader perspective of Colombian government.''
:''See [[Government of Colombia]] for a broader perspective of Colombian government.''
{{Taxation}}
{{Taxation}}
'''Taxation in [[Colombia]]''' is determined by the [[Congress of Colombia]], the [[Departments of Colombia|Department of Colombia Assemblies]] and the [[Municipalities of Colombia|Municipalities of Colombia councils]], which determine what kind of taxes can be levied and which rates can be applied.
'''Taxation in [[Colombia]]''' is determined by the [[Congress of Colombia]], every [[Departments of Colombia|Department Assembly]] and every [[Municipalities of Colombia|City Council]], which determine what kind of taxes can be levied and which rates can be applied.
The country inherited a harsh and diffused [[taxation]] policy from the [[Spanish Empire]] characterized by a heavy reliance on [[customs]] duties, due to the relatively-low capacity for local production of goods.
The country inherited a harsh and diffused [[taxation]] policy from the [[Spanish Empire]] characterized by a heavy reliance on [[customs]] duties.
Both the national and local governments' budgets run significant [[Government budget deficit|deficit]]s.


==National taxes{{anchor|IVA|Stamp tax|Financial transactions tax|Patrimony tax|Income tax}}==
== National taxes{{anchor|IVA|Stamp tax|Financial transactions tax|Patrimony tax|Income tax}} ==
{{update|date=January 2021}}
National taxes are administered by the National Tax and Customs Direction (DIAN).<ref> [http://www.dian.gov.co DIAN National Tax and Customs Direction]</ref> Some of these taxes include:
National taxes are administered by the [[National Directorate of Taxes and Customs]] ({{langx|es|Dirección de Impuestos y Aduanas Nacionales}}, DIAN).<ref>{{Cite web|url=https://www.dian.gov.co/|title=Dirección de Impuestos y Aduanas Nacionales - DIAN|website=www.dian.gov.co}}</ref> Some of these taxes include:


===VAT===
;IVA:
The [[value-added tax]] (IVA) is a variant of the sales tax. This tax is 16 percent of the price of merchandise, goods and services with some exceptions: [[public transportation]], [[Water supply and sanitation in Colombia|water supply and sanitation]] and the transportation of [[natural gas]] and [[hydrocarbons]]. The DIAN recognizes two separate categories (''regimenes'') of IVA: common and simplified. The first refers to [[business]]es with estimated [[Property|patrimony]] over 68 million [[Colombian peso]]s (about 34,000 USD), and the second refers to those with patrimony less than that. Although both are obligated to pay the same percentage, the simplified taxpayers are not obligated to conduct separate [[bookkeeping]] for the IVA or to generate invoices.
The [[value-added tax]] (VAT) is the main indirect tax. This rose to 19 percent in 2017;<ref>{{Cite news|url=http://www.auxadi.com/en/tax-reform-in-colombia-2017/|title=Tax Reform in Colombia 2017|date=2017-01-25|newspaper=auxadi|language=es-ES|access-date=2017-02-01}}</ref> up to the end of 2016 the tax was 16 percent of the price of merchandise, goods and services with some exceptions: [[public transportation]], [[Water supply and sanitation in Colombia|water supply and sanitation]] and the transportation of [[natural gas]] and [[hydrocarbons]]. The DIAN recognizes two separate categories (''regimenes'') of VAT: common and simplified. The first refers to [[business]]es with estimated [[Property|patrimony]] over 68 million [[Colombian peso]]s (about 34,000 USD), and the second refers to those with patrimony less than that. Although both are obligated to pay the same percentage, the simplified taxpayers are not obligated to conduct separate [[bookkeeping]] for the VAT or to generate invoices.


===[[Financial transactions tax]]===
;Stamp tax:
A 0.4% tax rate is imposed on all financial transactions, including withdraw money from ATM, promissory notes, wire transfers, internet banking, bank drafts and bank checks, money on term deposit, overdrafts, installment loans, securities underwriting commitments and other forms of off-balance sheet exposures, safekeeping of documents and other items in safe deposit boxes, currency exchange or unit trusts.
The stamp tax ({{lang-es|impuesto de timbre}}) is a tax on the expedition of an official document (or on the validity of private documents), such as a [[contract]] or contractual modification.


=== Financial transactions tax ===
===Patrimony tax===
This tax requires the annual payment of 1% of the total patrimony of people with patrimony estimated over 5&nbsp;thousand million pesos (about 1,4&nbsp;million USD as of February 2021).
This is a tax imposed over the years 1998-1999 that covers all of the financial transactions including [[banknotes]], [[promissory notes]], processing of payments by way of telegraphic transfer, [[EFTPOS]], internet banking or other means, [[cheque|bank drafts]] and [[cheque|bank cheques]], money on [[term deposit]], [[overdraft]]s, installment loans, documentary and standby [[letters of credit]], guarantees, [[performance bond]]s, securities underwriting commitments and other forms of off balance sheet exposures, safekeeping of documents and other items in [[safe deposit box]]es, currency exchange, sale, distribution or brokerage, with or without advice, unit trusts and similar financial products.
In 1998-99 the tax rate was 0.2%.<ref>{{cite web |url=http://www.banrep.gov.co/documentos/presentaciones-discursos/pdf/aso4eng.pdf |title=TOWARDS MULTIBANKING IN COLOMBIA: FROM ‘PATCHWORK’ TO FINANCIAL HOLDINGS |page=7}}</ref>


=== Patrimony tax ===
===[[Income tax]]===
*''Corporations:'' Income tax ({{langx|es|Impuesto a la renta y complementarios}}) must be paid by all local and foreign corporations operating in Colombia, who are subject to a corporate tax of 30%.<ref name="Art240">[http://estatuto.co/?e=989 Estatuto Tributario colombiano. Art. 240], Estatuto Tributario Nacional</ref>
This tax requires the annual payment of 0.3% of the total patrimony of those people with patrimony estimated over 3000 million pesos (about 1.5 million dollars). It is a temporary tax to help the military.
*''Individuals:'' Colombian citizens and foreign nationals who have lived in Colombia for more than 183 days total in any 365 day period not necessarily a calendar year, are considered to be tax residents (residentes fiscales) and are thereafter subject to individual Income tax based on a system of graduated marginal tax rates.


The table below shows the tax rate in units of UVT (''Unidad de Valor Tributario''), in which 1 UVT = $33,156 COP for 2018.<ref name="Res2015" /> See [[Taxation in Colombia#Tax Value Unity|UVT]].
=== Income tax ===
::{| class="wikitable"
Corporations: Income tax (Spanish: "Impuesto a la renta y complementarios") must be paid by all local and foreign corporations operating in Colombia. They are subject to a corporate tax of 33%.<ref>[http://www.secretariasenado.gov.co/senado/basedoc/codigo/estatuto_tributario_pr010.html#240 Estatuto Tributario colombiano. Art. 240]</ref>
|-
! Income Range in UVT<ref>Unidad de valor tributario. See [[Taxation in Colombia#Tax Value Unity|UVT]]</ref> !! Tax Rate
|-
| 0 to 1,400 || 0%
|-
|>1,400 to 1,700 || 19%
|-
|>1,700 to 4,100 || 28%
|-
| >4,100 || 33%
|}


==== Income declaration ====
Individuals: Colombian citizens and foreign individuals who have lived continuously or cumulatively in Colombia, for a total of 5 years are thereafter subject to individual income tax based on a system of graduated marginal tax rates. See table below:
In Colombia the natural persons who must present income declaration are classified on the next table.<ref>Article 1.6.1.13.2.7 on Decreto 1625 de 2016</ref>
::{| class="wikitable"
|-
! Requisites !! Amount in UVT
|-
|
* Natural person with [[gross asset value]]
|| >4500
|-
|
* [[gross revenue]]
* [[incomes]] upper 3,868,166 COP /monthly or [[Earnings]]
* Consumes and [[purchases]]
* If consumes through [[credit card]]
* If cumulative value of banking deposits, [[wire transfer]] or [[financial investment]]
|| >1400
|}


For 2019 are:
{| class="wikitable"
* Natural person with [[gross asset value]] upper $149,202,000 COP. (4500 UVT)
* Natural persons with [[gross revenue]] upper $46,418,000 COP per year. (1400 UVT)
* Natural person with [[incomes]] upper 3,868,166 COP /monthly ([[Earnings]] $46,418,000 per year). (1400 UVT)
* Consumes and [[purchases]] upper $46,418,000 (1400 UVT)
* If consumes through [[credit card]] exceeds $46,418,000 (1400 UVT)
* If cumulative value of banking deposits, [[wire transfer]] or [[financial investment]], exceeds $46,418,000 COP. (1400 UVT)

See [[Taxation in Colombia#Tax Value Unity|UVT]].

=== Payroll taxes ===
Both the employer and the employee are subject to monthly payroll taxes from the employee's gross salary, as follows:<ref>{{Cite news|url=https://papayaglobal.com/countrypedia/country/co/|title=Colombia - CountryPedia - Papaya Global|language=en-US}}</ref>
* Employer:
** Health plan - 8.5%
** Occupational risk - 0.348% - 8.7%
** ICFB (''Instituto Colombiano de Bienestar Familiar;'' Family Welfare) - 3%
** CAJA (''Cajas de compensación familiar;'' Family compensation funds) - 4%
** SENA (National Occupational Training Service) - 2%
** Pension fund - 12%
** Vacation - 4.17%
* Employee:
** Health plan - 4%
** Pension fund - 4%

== Local taxes{{anchor|Local order taxes}} ==
The local taxes are fixed by Local Councils through Acuerdos. This group of taxes includes:
* ''Impuesto a ganadores de loterías:'' Tax on [[lottery]] winnings
* ''Impuesto a loterías foráneas:'' Tax on out-of-state lottery tickets
* ''Impuesto al consumo de cervezas, sifones y refajos:'' Tax on [[beer]]
* ''Impuesto al consumo de licores, vinos, aperitivos y similares:'' Tax on [[liquor]]
* ''Impuesto al consumo de cigarrillos:'' Tax on [[cigarettes]]
* ''Impuesto al consumo de gasolina:'' Tax on [[gasoline]]
* ''Degüello de ganado mayor:'' Tax on [[slaughterhouse]]s
* ''Impuesto de registro:'' Tax to register academic degrees, patents, names, etc.
* ''Impuesto sobre vehículos automotores:'' Tax on [[automobile]]s
* ''Impuesto de industria y comercio:'' Tax on industrial, services or commercial establishments
The local council on each city fix the rate between this parameters:<ref>Art. 33 Ley 43 de 1983</ref>
* From 2 up to 7 per mil (0.2-0.7%) for industrial activities
* From 2 up to 10 per mil (0.2-1.0%) for commercial and services.
* ''Impuesto de avisos y tableros:'' Tax on [[advertising]]
* ''Impuesto predial:'' [[Property Tax]]

== Tax Value Unit ==
UVT (Unidad de Valor Tributario) means Tax Value Unit. Instead of setting a range in Colombian pesos, DIAN has the UVT value which represents a variable amount of pesos, and is updated at least every year. The next table shows the variation of this index in Colombia per year.

::{| class="wikitable"
|-
|-
! Year !! Value per UVT (colombian pesos) !! Variation !! Resolution
! Income. Range in UVT<ref>UVT means "Unidad de Valor Tributario" - Tax Value Unit. Instead of setting a range in colombian pesos, DIAN has a UVT value that is updated at least every year. As per 2010, one UVT is equal to COP $24.555</ref> !! Tax Rate
|-
|-
| 2019 || 34,270 || 3,36% || <ref>{{Cite web | url=https://www.dian.gov.co/normatividad/Normatividad/Resoluci%C3%B3n%20000056%20de%2022-11-2018.pdf | title=Resolución Número 56 | date=2018-11-22 | website=www.dian.gov.co}}</ref>
| 0 to 1090 || 0%
|-
|-
| 2018 || 33,156 || 4,07% || <ref>{{Cite web | url=https://www.dian.gov.co/normatividad/Normatividad/Resoluci%C3%B3n%20000063%20de%2014-11-2017.pdf | title=Resolución Número 63 | date=2017-11-14 | website=www.dian.gov.co}}</ref>
|>1.090 to 1700 || 19%
|-
|-
| 2017 || 31,859 || 7,08% ||<ref>{{Cite web | url=https://www.dian.gov.co/normatividad/Normatividad/Resoluci%C3%B3n%20000071%20de%2029-11-2016.pdf | title=Resolución Número 71 | date=2016-11-21 | website=www.dian.gov.co}}</ref>
|>1.700 to 4100 || 28%
|-
|-
| 2016 || 29,753 || <ref name="Res2015">{{Cite web | title=DIAN - Resolución 115 | date=2015-11-06 | url=https://www.dian.gov.co/normatividad/Normatividad/Resoluci%C3%B3n%20000115%20de%2006-11-2015.pdf}}</ref>
| >4.100 || 33%
|}
|}

==Local order taxes==
This group of taxes includes among others:
* Impuesto a ganadores de loterías: Tax on [[lottery]] winnings
* Impuesto a loterías foráneas: Tax to allow the sale of out-of-state lottery tickets
* Impuesto al consumo de cervezas, sifones y refajos: Tax on [[Beer]]
* Impuesto al consumo de licores, vinos, aperitivos y similares: Tax on [[Liquor]]s
* Impuesto al consumo de cigarrillos: Tax on [[cigarettes]]
* Impuesto al consumo de gasolina: Tax on [[gasoline]]
* Degüello de ganado mayor: Tax on [[slaughterhouse]]s
* Impuesto de registro: Tax to register (academic degrees, patents, names, etc.)
* Impuesto sobre vehículos automotores: Tax on [[automobile]]s
* Impuesto de industria y comercio: Tax to allow the opening of industrial or commercial establishments
* Impuesto de avisos y tableros: Tax on [[advertising]]
* Impuesto predial: [[Real estate]] tax.


== References ==
== References ==
* [http://www.investincolombia.com.co/how-to-invest/taxes-and-deduction-example/taxes-in-colombia.html Taxes in Colombia] Official Investment Portal
* [http://www.dian.gov.co/DIAN/15Servicios.nsf DIAN official taxes services] DIAN, Dirección Impuestos y Aduanas Nacionales
{{Reflist}}
{{Reflist}}


== External links ==
* [http://www.investincolombia.com.co/how-to-invest/taxes-and-deduction-example/taxes-in-colombia.html Taxes in Colombia] Official Investment Portal
* [http://www.monografias.com/trabajos46/impuestos-colombia/impuestos-colombia.shtml Principales impuestos nacionales, departamentales, distritales y municipales (Colombia)] Impuestos en Colombia

{{South America topic|Taxation in}}
{{Colombia topics}}
{{Colombia topics}}


{{DEFAULTSORT:Taxation In Colombia}}
{{DEFAULTSORT:Taxation In Colombia}}
[[Category:Taxation in Colombia]]
[[Category:Taxation in Colombia| ]]
[[Category:Economy of Colombia]]
[[Category:Finance in Colombia]]

Latest revision as of 18:56, 3 November 2024

See Government of Colombia for a broader perspective of Colombian government.
Part of a series on
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Taxation in Colombia is determined by the Congress of Colombia, every Department Assembly and every City Council, which determine what kind of taxes can be levied and which rates can be applied. The country inherited a harsh and diffused taxation policy from the Spanish Empire characterized by a heavy reliance on customs duties.

National taxes

[edit]

National taxes are administered by the National Directorate of Taxes and Customs (Spanish: Dirección de Impuestos y Aduanas Nacionales, DIAN).[1] Some of these taxes include:

VAT

[edit]

The value-added tax (VAT) is the main indirect tax. This rose to 19 percent in 2017;[2] up to the end of 2016 the tax was 16 percent of the price of merchandise, goods and services with some exceptions: public transportation, water supply and sanitation and the transportation of natural gas and hydrocarbons. The DIAN recognizes two separate categories (regimenes) of VAT: common and simplified. The first refers to businesses with estimated patrimony over 68 million Colombian pesos (about 34,000 USD), and the second refers to those with patrimony less than that. Although both are obligated to pay the same percentage, the simplified taxpayers are not obligated to conduct separate bookkeeping for the VAT or to generate invoices.

Financial transactions tax

[edit]

A 0.4% tax rate is imposed on all financial transactions, including withdraw money from ATM, promissory notes, wire transfers, internet banking, bank drafts and bank checks, money on term deposit, overdrafts, installment loans, securities underwriting commitments and other forms of off-balance sheet exposures, safekeeping of documents and other items in safe deposit boxes, currency exchange or unit trusts.

Patrimony tax

[edit]

This tax requires the annual payment of 1% of the total patrimony of people with patrimony estimated over 5 thousand million pesos (about 1,4 million USD as of February 2021).

Income tax

[edit]
  • Corporations: Income tax (Spanish: Impuesto a la renta y complementarios) must be paid by all local and foreign corporations operating in Colombia, who are subject to a corporate tax of 30%.[3]
  • Individuals: Colombian citizens and foreign nationals who have lived in Colombia for more than 183 days total in any 365 day period not necessarily a calendar year, are considered to be tax residents (residentes fiscales) and are thereafter subject to individual Income tax based on a system of graduated marginal tax rates.

The table below shows the tax rate in units of UVT (Unidad de Valor Tributario), in which 1 UVT = $33,156 COP for 2018.[4] See UVT.

Income Range in UVT[5] Tax Rate
0 to 1,400 0%
>1,400 to 1,700 19%
>1,700 to 4,100 28%
>4,100 33%

Income declaration

[edit]

In Colombia the natural persons who must present income declaration are classified on the next table.[6]

Requisites Amount in UVT
>4500
>1400

For 2019 are:

See UVT.

Payroll taxes

[edit]

Both the employer and the employee are subject to monthly payroll taxes from the employee's gross salary, as follows:[7]

  • Employer:
    • Health plan - 8.5%
    • Occupational risk - 0.348% - 8.7%
    • ICFB (Instituto Colombiano de Bienestar Familiar; Family Welfare) - 3%
    • CAJA (Cajas de compensación familiar; Family compensation funds) - 4%
    • SENA (National Occupational Training Service) - 2%
    • Pension fund - 12%
    • Vacation - 4.17%
  • Employee:
    • Health plan - 4%
    • Pension fund - 4%

Local taxes

[edit]

The local taxes are fixed by Local Councils through Acuerdos. This group of taxes includes:

  • Impuesto a ganadores de loterías: Tax on lottery winnings
  • Impuesto a loterías foráneas: Tax on out-of-state lottery tickets
  • Impuesto al consumo de cervezas, sifones y refajos: Tax on beer
  • Impuesto al consumo de licores, vinos, aperitivos y similares: Tax on liquor
  • Impuesto al consumo de cigarrillos: Tax on cigarettes
  • Impuesto al consumo de gasolina: Tax on gasoline
  • Degüello de ganado mayor: Tax on slaughterhouses
  • Impuesto de registro: Tax to register academic degrees, patents, names, etc.
  • Impuesto sobre vehículos automotores: Tax on automobiles
  • Impuesto de industria y comercio: Tax on industrial, services or commercial establishments

The local council on each city fix the rate between this parameters:[8]

  • From 2 up to 7 per mil (0.2-0.7%) for industrial activities
  • From 2 up to 10 per mil (0.2-1.0%) for commercial and services.
  • Impuesto de avisos y tableros: Tax on advertising
  • Impuesto predial: Property Tax

Tax Value Unit

[edit]

UVT (Unidad de Valor Tributario) means Tax Value Unit. Instead of setting a range in Colombian pesos, DIAN has the UVT value which represents a variable amount of pesos, and is updated at least every year. The next table shows the variation of this index in Colombia per year.

Year Value per UVT (colombian pesos) Variation Resolution
2019 34,270 3,36% [9]
2018 33,156 4,07% [10]
2017 31,859 7,08% [11]
2016 29,753 [4]

References

[edit]
  1. ^ "Dirección de Impuestos y Aduanas Nacionales - DIAN". www.dian.gov.co.
  2. ^ "Tax Reform in Colombia 2017". auxadi (in European Spanish). 2017-01-25. Retrieved 2017-02-01.
  3. ^ Estatuto Tributario colombiano. Art. 240, Estatuto Tributario Nacional
  4. ^ a b "DIAN - Resolución 115" (PDF). 2015-11-06.
  5. ^ Unidad de valor tributario. See UVT
  6. ^ Article 1.6.1.13.2.7 on Decreto 1625 de 2016
  7. ^ "Colombia - CountryPedia - Papaya Global".
  8. ^ Art. 33 Ley 43 de 1983
  9. ^ "Resolución Número 56" (PDF). www.dian.gov.co. 2018-11-22.
  10. ^ "Resolución Número 63" (PDF). www.dian.gov.co. 2017-11-14.
  11. ^ "Resolución Número 71" (PDF). www.dian.gov.co. 2016-11-21.
[edit]
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