Skip to main content

Menu top header en

  • About us
  • Entrepreneurship
  • Success stories
  • News and events
  • Blog
  • Press
  • Spanish
  • English
Bogotá
GMT -5

10:43 am

New York
GMT -5

10:43 am

L. A.
GMT -8

07:43 am

Tokyo
GMT +9

12:43 am

Sydney
GMT +11

02:43 am

London
GMT +0

03:43 pm

Prev
Next
Inicio

Main menu en

Menu
  • Why Bogota?
      • General Facts and Figures
      • Business climate
      • Strategic location
      • Market Access from Colombia and Bogota
      • Workforce
      • Operating Environment
      • Attractive Incentives
      • Quality of Life
      • Information System for investors
      • Smart Specialization in Bogota-Region
    • Click to Benchmark
    • Close
  • Investment sectors
      • Information Technology
      • Outsourcing Industry (BPO)
      • Pharmaceutical Industry
      • Health Services
      • Medical devices
      • Food and Beverage Industry
      • Construction Materials
      • Infrastructure and City Projects
      • Creative industries
      • Cosmetics
      • Other Investment Sectors
    • Close
  • How to invest
      • How to live and work in Colombia
      • How to invest and exchange foreign currency in Colombia
      • How to start a company in Colombia
      • How to pay taxes in Colombia
      • How to import and export customs in Colombia
      • Which foreign investment incentives exist?
      • How to buy and rent property in Colombia
      • How to employ workers in Colombia
      • How is intellectual property protected in Colombia
      • How to contract with the colombian government
      • How to get access to banking in Colombia
      • How to acquire environmental licenses
      • How free economic competition is protected in Colombia
      • How a company is liquidated in Colombia
      • Doing business with medical cannabis
    • Close
  • How can we help
  • About us
  • Entrepreneurship
  • Success stories
  • News and events
    • Spanish
    • English
Home Invest in bogota
Bogotá
GMT -5

10:43 am

New York
GMT -5

10:43 am

L. A.
GMT -8

07:43 am

Tokyo
GMT +9

12:43 am

Sydney
GMT +11

02:43 am

London
GMT +0

03:43 pm

Prev
Next
  1. Home
  2. How to invest
  3. How to pay taxes in Colombia

How to pay taxes in Colombia

COMO%20PAGAR%20IMPUESTOS1-01.png

This chapter includes a conceptual description of the country’s national, departmental and municipal taxes. It also includes the tax incentives offered by the Colombian legal system to promote certain productive activities.

It also includes general information on the taxation of natural persons in Colombia.

These are some of the key facts of taxes in Colombia:

  • The income tax rate is 33%.
  • The sales tax rate is 19%.
  • Company profits as of the 2017 taxable year will be taxed at a rate of 5%, except for those distributed among national companies. 
  • The Colombian Free Trade Zone regime contemplates a 20% income tax rate for certain eligible users. 
  • There are tax benefits (exemptions, special credits, additional deductions, etc.), which seek to promote priority sectors for the national economy, strengthen social investments and assets of the country’s companies, as well as other which aim to generate more formal employment.

Special income tax deductions:

  • Investments in research, development, technology, and innovation are 100% deductible within the taxable period in which they are made. In addition, there could be tax discounts for these investments, as indicated in more detail below;
  • An additional deduction equivalent to 50% of the investment made in the production and use of non-conventional renewable energy sources is also offered;
  • Accelerated depreciation (up to a rate of 20% per year) on machinery, equipment and civil works necessary for the preliminary studies, investment and operation of generation facilities with non-conventional renewable energy sources;
  • Industry and commerce, billboard advertising and real estate taxes actually paid can be deducted by 100% provided they have a causal relationship with the taxpayer’s economic activity;
  • As of the 2017 taxable year, taxpayers will be entitled to deduct the amounts paid as sales tax for the purchase or import of capital goods taxed at the general rate for the purposes of calculating the taxable base of the income tax.

Exempt income: 

  • The exempt income established in Decision 578 of the CAN (in this case revenue is only taxed in the source country, and exempt revenue only in the country of residence);
  • The payment of principal, interest, fees and other items related to external public credit operations, provided they are paid to nonresidents;
  • The sale of electric power generated using wind-based energy, biomass, solar, geothermal, agricultural waste or marine energy, provided the company itself carried out the sale and it meets the established requirements, for a term of fifteen (15) years starting in 2017;
  • The provision of fluvial transport services with boats and slabs of shallow draught for a term of fifteen (15) years as of the effective date of Law 1819 of 2016;
  • The exploitation of new forest plantations;
  • Income associated with affordable and low-income housing;
  • Proceeds from life insurance.

 

Download%20TAX%20REGIME-01.png

 

Updated (mm/dd/yyyy): 02.22.2018

Related files
How to pay taxes in Colombia Formato PDF 68 MB Español
Overview, types of national, departamental and municipal taxes, tax incentives and BEPS.
Investment Guide 2017 Formato PDF 125 MB Español
Complete document of the Investment Guide of Bogotá 2017.

Need more information?

Contact Invest in Bogota to receive all the information and advice you need to invest in Bogota and Colombia.

Contact us

Visit us

Calle 67 #  8 - 32/44, 4th Floor.

Bogota, Colombia.

Call us

+57 031 742 30 30

Write us

info@investinbogota.org

Follow us
  • Twitter
  • facebook
  • LinkedIn
  • youtube
  • Instagram

Leave us your data and download the file for free!

I accept the terms and conditions of the Personal Data Protection Law. More information here: https://en.investinbogota.org/Disclaimer
Items Imagen link
Invest in Bogotá
Items Imagen link
Bogotá
:

An initiative of:

Items Imagen link
Cámara de comercio
Alcaldia de Bogota

menu bottom footer en

  • About Invest in Bogota
  • Invitations
  • Transparence law
  • Disclaimer
  • City Brand

All rights reserved Invest in Bogotá 2018