Why Doing Business In Colombia?

Colombia - Commerce Data - TKEG Expat™ (Test)

Republic of Colombia (CO)

TKEG Expat™ (Test) Business Guide

Republic of Colombia

Business-friendly environment:

Colombia requires all companies to comply with International Financial Reporting Standards (IFRS), also known as NIFF, to ensure compliance is crucial, and violations may result in substantial fines.

Tax incentives:

Colombia offers a variety of tax incentives, including reductions in taxable base, deductions from payable taxes, and refunds of paid taxes to taxpayers. These incentives involve income tax or value-added tax (VAT), which are the main taxes collected by the Colombian government.

Specific tax regimes:

In addition to corporate income tax, Colombian companies may also face carbon tax and registration tax. The carbon tax is based on the carbon content of fossil fuels. The registration tax rates vary depending on the circumstances, with rates for documents registered with the Chamber of Commerce ranging from 0.3% to 0.7%, and rates for documents registered at the notary's office ranging from 0.5% to 1%.

Tax rate reductions for specific companies or sectors:

Certain companies, such as state-owned and mixed economy companies, publishing companies, hotels and theme parks, and non-profit entities, enjoy a 9% income tax rate incentive. Qualified enterprises within free trade zones benefit from a 20% reduced tax rate. Additionally, income from Colombia's rural development, unconventional energy sales, and technological value-added industries and creative activities is exempt from tax.

About Colombia

Colombia is Latin America’s fourth-largest economy, offering a strategic location between North and South America, a young skilled workforce, and growing sectors in technology and services.