Taxation in Colombia
- See Government of Colombia for a wider perspective of Colombian government.
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Taxation in Colombia is determined by the Congress of Colombia, the Departments of Colombia Assemblies and the Municipalities of Colombia councils, which determine what kind of taxes can be levied and which rates can be applied.
Colombia inherited from the Spanish Empire a harsh and diffuse politic of taxation characterized by a tax system with a very high number of different taxes, but that relies basically in the customs, due to the relatively low capacity of local production of goods.
It is important to note that both the national government's budget and the local government's budgets run important deficits.
Taxes of National order
The national order taxes are administred by the DIAN National Tax and Customs Direction. Some of this taxes are, among others:
IVA
The Value-added tax (IVA), is a variant of the sales-tax. This tax charges 16% of the price of sale of all kind of merchandises, goods and services (With some exceptions which are: the public transportation, the Water supply and sanitation, and the transportation of natural gas and hydrocarbons). The Dian recognices two separated categories (regimenes) of IVA responsibles: The common and the simplificated. The first refers to commercers with estimated patrimony over 68 million Colombian pesos (about 34000 dollars), and the second refers to those with patrimony lesser to that. Although both are obligated to pay the same percentage, the simplified responsibles are not obligated to carry separated bookkeepings for the IVA or to generate sale bills.
Stamp tax
The stamp tax (spanish: "impuesto de timbre") is a contribution over the expedition of any official document, and over the validity of private documents, as is the case of any kind of contract or contractual modifications.
Financial transactions tax
This is a tax that covers all the financial transactions including banknotes, promissory notes, processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means, bank drafts and bank cheques, money on term deposit, overdrafts, installment loans, documentary and standby letters of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures, safekeeping of documents and other items in safe deposit boxes, currency exchange, sale, distribution or brokerage, with or without advice, unit trusts and similar financial products
Patrimony tax
This tax requires the anual payment of 0.3% of the total patrimony of those people with patrimony estimated over 3000 million pesos (about 1.5 million dollars)
Income tax
Income tax (Spanish: "Impuesto a la renta y complementarios") must be payed by all the citizens with total anual income higher than 63 million pesos (about 31500 dollars). The tax represents 38.5% of the total income.
Local order taxes
This group of taxes includes among others:
- Impuesto a ganadores de loterías: Tax to lottery prices
- Impuesto a loterías foráneas: Tax to allow the sale of lottery tickets
- Impuesto al consumo de cervezas, sifones y refajos: Tax to Beer
- Impuesto al consumo de licores, vinos, aperitivos y similares: Tax to Liquors
- Impuesto al consumo de cigarrillos: Tax to cigarettes
- Impuesto al consumo de gasolina: Tax to gasoline
- Degüello de ganado mayor: Tax to slaughterhouses
- Impuesto de registro: Tax to register (of academic degrees, patents, names, etc)
- Impuesto sobre vehículos automotores: Tax o automobiles
- Impuesto de industria y comercio: Tax to allow the opening of indusrial or commercial establishments
- Impuesto de avisos y tableros: Tax to publicity
- Impuesto predial: Tax to real estate properties