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The Tax Code (Estatuto Tributario) is the main body of law regarding taxation. Special tax provisions are contained in other laws, such as the mining laws, oil and gas laws, Customs Duties Code, free trade zone laws, environmental laws, social security laws, and municipal codes.
Taxes are levied in Colombia both at the national level by the central government and at the local level by municipal authorities. The main national taxes are corporate income tax (impuesto sobre la renta a las sociedades), personal income tax (impuesto sobre la renta de las personas naturales), value added tax (impuesto sobre las ventas), and stamp tax (impuesto de timbre). Taxes at the local level include industry and commerce tax and municipal property tax.
National taxes are administrated by the Ministry of Finance via the Tax and Customs Administration. Municipal authorities administer the various municipal taxes.
Written questions may be addressed to the tax authorities on the tax implications of specific proposed transactions.
Double Tax Relief
Although, to date, Colombia does not have the extensive double tax treaty network that many countries have developed, the country has several domestic tax law provisions that allow relief on a unilateral basis. Furthermore, no double taxation exists among Andean Pact members. See "Foreign-Source Income" at 9.03 for a detailed discussion of Colombia's unilateral relief provisions.
Tax Stability Regime
The tax stability regime permits companies to agree with the government, for a term of ten years, that no tax or contribution at the national level, established after the signature of the agreement (including any increase on the income rate), will apply to them. However, the rate agreed upon must be higher than the current rate.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Mario Andrade, Deloitte & Touche, Santafe de Bogota, Colombia on Tel: +57 1 256 1548, Fax: +57 1 256 1557
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