The liability for Colombian income tax depends on whether an individual is a Colombian citizen, resident or non-resident. This determination is made based on the specific facts and circumstances of that individual. Following is an overview of the Colombian tax system for employees going to work in Colombia.
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Colombia taxes its tax residents on their worldwide income.
Taxation for non-residents is established only on their Colombian-sourced income, which includes employment income obtained for services rendered in Colombia, regardless of from where the payment is made. Non-residents will be required to file a tax return if their total taxable income was not subject to withholding tax in Colombia at the non-resident rate (20%), but additional conditions may apply.
Planning advice should be sought prior to arrival in Colombia if the taxpayer has appreciated assets that may be sold, deferred income that may be received during a residency period or certain pre-assignment incentive compensation payments.
Colombia also requires tax residents to report assets held outside Colombia. Individuals should be familiar with the reporting rules before arriving in Colombia.
The tax year runs from 1 January to 31 December.
An individual who is a Colombian tax resident at 31 December files Form 210 (individual income tax return). An individual who is a non-resident of Colombia on 31 December files Form 110, that is for legal and similar persons and non-resident natural and similar persons and illiquid estates of non-resident deceased persons or income and assets for entities required to declare.
By issuing an Official Decree, the Colombian government stipulates the deadlines for taxpayers to submit income tax returns for each year, but it is normal for them to be like the dates of the previous year. For natural persons, the dates are between August and October of each year, according to the last two digits of the Colombian tax identification number.
Submitting the declaration is a different obligation from payment, so late payment may generate a different penalty than for making the payment late. Fines may increase over time and are independent of interest for late compliance with the obligation.
Taxpayers can request from the authority a deadline for the payment of pending tax obligations, whether taxes, penalties or late payment interest, if the interested party offers a real guarantee that sufficiently supports the debt.
Interest continues to be generated until the moment in which all of the obligations subject to the facility are paid.
There is a different rate of income tax depending on the range of the natural person's net income, which is different from the Occasional Gain Tax complementary to the Income Tax. In the income tax return for the year 2024, which is presented in 2025, the following rate table applies:
From 0 to 1090 UVT
From >1090 to 1700 UVT
From >1700 to 4100 UVT
From >4100 to 8670 UVT
From >8670 to 18970 UVT
From >18970 to 31000 UVT
From >31000 UVT onwards
(Figures in COP):
UVT value $47.065 (For taxable year 2024)
General Tab:
Total labor income per year: COP 504,000,000
Total taxed revenues: COP 450,000,000
Limit of exempt income and deductions (40% - 1,340 UVT): COP 56,832,080
Subtotal exempt income and deductions: −COP 120,934,792
Exempt income and deductions limited to: COP 56,832,080
Total net income (General Tab): COP 393,167,920
Income tax in COP: COP 103,154,000
Ana Cepeda Chaparro
Jonathan Rodriguez Guerrero
E: jonathan.rodriguez@co.gt.com
Diego Julian Fuerte Pinzon