Colombia

Colombia - Civil Law
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Colombia taxes

This article explains the tax laws in Colombia, this article will educate you on the tax laws for a PLC(SA) which is the most common company type in Colombia.

Colombia imposes a tax on income from outside the country differently than if it were derived locally. Theheadline rate for offshore tax, from our research, and this is not personal tax advice, is 0%. CO doesn't have major incentives to bring in offshore income earned abroad. Taxes are quite low in Colombia as the headline corp. tax rateis 25%. This ranks Colombia as 98th overall with regards to corp. taxation rate internationally. . .

The value added tax (VAT) rate in CO is 16.00%, which ranks Colombia as 98th overall in terms of VAT taxation rate internationally. In terms of other taxation, an employer will contribute 8.50% to the equivalent of a social security fund and an employee will contribute 10.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 87hours. Contributing to this is the number of yearly labor tax payments, which is 1 in CO.

Thin cap laws are in play. This refers to any sort of restrictions on companies' debt-to-asset ratios. A dividend is distributions of a company's earnings, passed by by the board of directors, to a particular class of shareholders.Dividends can be one of the following shares of stock, cash payments, or other property. The capital gains rate in COis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest witholding rate is estimated at 0This means that the taxman expects relevant legal entities to automatically withhold 0 of payments abroad for interest payments. The dividends witholding rate is 0Which means that the taxman expects companies to automatically withhold 0 of payments offshore for for dividend payments. The royalties witholding rate 0 This should be interpreted usually that the tax authorities expects companies to automatically withhold 0 of money remitted abroad for royalty payments.

There is a tax on net wealth in Colombia. There are no known inheritance taxes in CO. There exist well know credits for innovation spend that include tax relief in this country.

The above is not tax or legal advice for your particular personal tax obligations. Incorporations.io can to refer you to an expert in Colombia who will consult with you. Contact us today. Click the free consultation button above.

It takes approximately 86 hours to file and prepare documents for a Colombia Civil Law.
The corporate tax is approximately 25% which is 98 in the world.

Owners of a company in Colombia are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.

The vat rate in Colombia is 16% which ranks 98 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
15Tax treaties
25%Offshore Tax
25%Corp rate
-Loss carryback years
86Corporate time
16%VAT rate
10%Capital gains
2017AEOI planned

Read this to learn about incorporating a company in
Colombia

We can help you form a company in Colombia. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Colombia, which is required by law.

We can help you with your incorporations needs for an initial payment of just $1000.

Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.

Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.

Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.

Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.

Colombia Tax Treaties

CountryTypeDate signed
South Korea
DTC 2010-07-27
Canada
DTC 2008-11-21
Switzerland
DTC 2007-10-26
Curacao
TIEA2013-02-04
Ecuador
DTC 2004-05-04
Barbados
TIEA2014-11-25
Bolivia
DTC 2004-05-04
Mexico
DTC 2009-08-13
Portugal
DTC 2010-08-30
Chile
DTC 2007-04-19
Peru
DTC 2004-05-04
United States
TIEA2001-03-30
Spain
DTC 2005-03-31
India
DTC 2011-05-13
Czech Republic
DTC 2012-03-22

Country Info

National Flag of
República de Colombia (spa)
Currency
COP
Area Code
+57
Capital
Bogotá
Region
South America
Native Languages
Spanish