Because of the changes to the income tax system and the reform, the overall tax burden may be increasing for many, and, consequently, companies with international assignees who are subject to Colombian taxation may see a rise in their assignment-related costs.
In cases of assignments to Colombia where assignees are subject to Colombian taxation, and for assignees working outside Colombia but still subject to Colombian taxation, international assignment cost projections and budgeting should reflect the changes described in this newsletter. Where appropriate, adjustments to gross-up packages and withholding taxes may need to be considered.
Each individual’s tax status should be determined in light of his or her particular situation.