Colombia: Tax reform measures include 15% minimum tax, surcharges, digital services tax

Congress enacted the tax reform proposed by the government.

Congress enacted the tax reform proposed by the government.

The Congress on 13 December 2022 issued Law 2277 of 2022, enacting the tax reform proposed by the government, that includes the following tax measures:

Corporate income tax

  • Minimum tax of 15%, including income arising from the provision of hotel services and ecotourism/agritourism parks
  • New or increased surcharges on financial institutions, natural resources extraction and hydro energy generation companies 

Deductions, benefits, tax credits

  • Limitation equal to 3% on taxable net income on certain exempted income, special deductions and tax credits
  • Reduction in threshold for exempting profits arising from the sale of shares listed in the Colombian stock exchange to sales of shares that do not exceed 3% (currently 10%) of the entity´s outstanding shares
  • Increase in research & development (R&D) tax credit 30% (from 25%) of the value invested in the project, along with elimination of the associated deduction
  • Repeal of mega-investments and economic and social development zones regime (ZESE)
  • Repeal of the 5-year straight-line amortization regime for the oil and mining industry
  • Repeal of exemption of income from certain activities such as:
    • Orange economy
    • Productivity benefits for the agricultural industry
    • New forestry plantations
    • River transportation services

Capital gains tax

  • Increase in capital gains tax rate to 15% (from 10%) 

Dividends tax

  • Increase in withholding tax rate applicable to nonresidents on the distribution of dividends out of previously taxed income to 20% (from 10%)
  • Increase in withholding tax rate applicable among national companies on the distribution of dividends out of previously taxed income to 10% (from 7.5%)

Digital services tax

  • Introduction of digital services tax applicable to specified digital services
  • New significant economic presence test for sales of goods in Colombian market 

Value added tax (VAT)

  • Elimination of VAT-free days

Other taxes

  • Reenactment of national stamp tax on real estate transactions (rate varies between 1.5% and 3.5% depending on the amount of the transaction)
  • Introduction of a permanent wealth tax
  • Introduction of single-use plastic tax, ultra-processed beverages and food products tax, and carbon tax

Read a December 2022 report [PDF 239 KB] prepared by the KPMG member firm in Colombia


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