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Why Grant Thornton
Whether you’re growing in one market or many, looking to operate more effectively, managing risk and regulation, or realising stakeholder value, our firms can help.
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Culture and experience
Grant Thornton’s culture is one of our most valuable assets and has steered us in the right direction for more than 100 years.
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Global scale and capability
Beyond global scale, we embrace what makes each market unique, local understanding on a global scale.
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Join our network
In a world that wants more options for high quality services, we differentiate in the market to grow sustainably in today’s rapidly changing environment.
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Leadership governance and quality
Grant Thornton International Ltd acts as the coordinating entity for member firms in the network with a focus on areas such as strategy, risk, quality monitoring and brand.
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Africa
24 member firms supporting your business.
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Americas
31 member firms, covering 44 markets and over 20,000 people.
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Asia-Pacific
19 member firms with nearly 25,000 people to support you.
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Europe
53 member firms supporting your business.
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Middle East
8 member firms supporting your business.
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Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
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Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
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Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
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Cybersecurity
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
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Forensic services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
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Mergers and acquisitions
We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer-term strategic goals.
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Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery.
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Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
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Valuations
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
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Sustainability advisory
We can assist you with a variety of sustainability advice depending on your needs, ranging from initial strategy development, reporting and compliance support, through to carbon measurement and management.
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IFRS
At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
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Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
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Global audit technology
Our global assurance technology platform provides the ability to conduct client acceptance, consultations and all assurance and other attestation engagements.
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Sustainability assurance
Our sustainability assurance services are based on our global network of specialists, helping you make more efficient decisions for the good of your organisation.
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Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
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Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
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Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
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Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
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Transfer pricing
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
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Africa tax desk
A differentiating solution adapted to the context of your investments in Africa.
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Sustainability tax
Through our sustainability tax advisory services, we can advise how environmental taxes, incentives, and obligations can impact your progress, requiring alignment with governmental and legislative pressures.
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Banking Holding banking to account: the real diversity and inclusion pictureWe explore how the banking sector can continue to attract, retain and nurture women to build a more diverse and inclusive future.
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Sustainability From voluntary to mandatory ESG: How banks can future-proof their operationsAs we move from voluntary ESG initiatives to mandatory legislation, we explore what the banking sector needs to prioritise.
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IFRS IFRS 9 - Audit of Expected Credit LossesGPPC releases The Auditor’s response to the risks of material misstatement posed by estimates of expected credit losses under IFRS 9
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growthiQ Steering your company to long-term successHistory has something important to tell us about the difficulties of steering a business to long-term success – through seismic shifts in technology, consumer demands and product development. With that in mind it’s unsurprising that over half the world’s largest companies in the early 1900s had shut their doors by the late 1990s. Some, however, have endured.
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International Financial Reporting Standards Implementation of IFRS 17 ‘Insurance Contracts’The auditor’s response to the risks of material misstatement arising from estimates made in applying IFRS 17 ‘Insurance Contracts’
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IFRS Get ready for IFRS 17After twenty years of development the IASB has published IFRS 17 ‘Insurance Contracts’, find out more.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
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Not for profit Mission: possible – putting impact at the heart of charityGlobal charitable continues to decline and charity leaders are increasingly looking at their own unique impact journey.
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Access to finance Raise finance to invest in changePrepare your business to raise finance to invest in change.
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Private equity firms Private equity in the mid-market: reshaping strategies for 2021When the global COVID-19 pandemic stormed across the globe in early 2020, the private equity sector was hit hard but deals are coming back to the market.
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Mid-market businesses Getting ready for private equity investmentOur specialists explore how private equity firms are now working with their portfolios and how the mid-market can benefit from investment.
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Mid-market businesses Myth-busting private equityNervous about partnering with Private Equity? We explore some of the common myths we come across when speaking to mid-market businesses about PE investment.
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Public sector Helping build the government of tomorrow, todayLearn about the Grant Thornton US public sector team.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
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Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
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Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Retail How retail is positioning for successCOVID-19 provided some hard lessons for the retail industry. It is time to turn those into sustainable and well executed growth strategies in 2021.
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Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
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Technology Mid-market tech companies lead the way on diversity and inclusionWe explore how the mid-market tech sector can continue to build and nurture a culture that’s increasingly more diverse and inclusive for women.
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Tax Resetting global tax rules after the pandemicBusinesses are seeing rising challenges, and finance heads are dealing with a range of new measures. To say the next 12 months are critical for businesses is an understatement.
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TECHNOLOGY International tax reform: the potential impact on the technology industryIn this article, we’ve summarised key elements of the global tax reform proposals, their potential impact on technology industry and advice from our digital tax specialists on what technology companies can do to prepare.
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Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
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TMT TMT industry: Fully charged or on standby?Our research revealed five key trends that resonated with Technology, Media and Telecoms (TMT) industry leaders around the world. We asked a panel of our experts from UK, US, India Ireland and Germany, to give us their reaction to the findings.
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Cybersecurity One size fits nothingTechnology companies must adopt a new approach to digital risk: those that successfully develop a reputation for digital trust by demonstrating an unwavering commitment to cyber security and data privacy will be able to carve out a competitive advantage.
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Technology, media & telecommunications Why it’s time for a 5G reality checkFigures suggest the mobile sector is maturing. While data usage continues to soar, mobile revenues are expected to flatten out over the next few years.
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International business Mid-market businesses lifted by rising tide of optimismOptimism among global mid-market business leaders rose to 67% in the first half of this year and they are markedly more optimistic about their prospects with global optimism having increased by 8%.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Hotels COVID-19: Checking in with the hotel industry one year onCOVID-19 provided some hard lessons for the hotel sector. It is time to turn those into sustainable and well executed growth strategies.
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Women in Business 2024
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COP28: Mid-market firms should seize the opportunity from adaption and innovation
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Scanning the horizon: Mid-market sets sights on global trade growth
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Mid-market sees business optimism reach record high
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Women in tech: A pathway to gender balance in top tech roles
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Women in leadership: a pathway to better performance
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Women in Business 2024
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Women in business: Regional picture
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Pathways to Parity: Leading the way
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Promoting ESG excellence through tax
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IFRS Alerts
IFRS Alerts covering the latest changes published by the International Accounting Standards Board (IASB).
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Example Financial Statements
General guidance for preparers of financial statements that supports the commitment to high quality, consistent application of IFRS.
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Insights into IFRS 2
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IFRS 8
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IAS 36
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IFRS 17
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Pillar 2
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Global expatriate tax guide
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International indirect tax guide
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Global transfer pricing guide
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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.
Click on each of the areas below to expand for more information:
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.
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 2023, which is presented in 2024, the following rate table applies:
Ranges in UVT | Marginal Rate | Tax | |
From | To | ||
0 | 1090 | 0% | 0 |
>1090 | 1700 | 19% | (Tax base in UVT less 1090) x 19% |
>1700 | 4100 | 28% | (Tax base in UVT minus 1700) x 28% + 116 UVT |
>4100 | 8670 | 33% | (Tax base in UVT minus 4100) x 33% + 788 UVT |
>8670 | 18970 | 35% | (Tax base in UVT minus 8670) x 35% + 2296 UVT |
>18970 | 31000 | 37% | (Taxable base in UVT less 18970) x 37% + 5901 UVT |
>31000 | Onwards | 39% | (Tax base in UVT less 31000) x 39% + 10352 UVT |
(Figures in COP):
UVT value $42.412 (For taxable year 2023)
General Tab | Amount |
Salaries | 424.800.000 |
Bonus food's aid | 36.000.000 |
Mobility assistance aid | 24.000.000 |
Expenses for job tasks | 19.200.000 |
Total labor income per year | 504.000.000 |
(-) Expenses that DO NOT constitute salary | -19.200.000 |
(-) Health contributions | -13.920.000 |
(-) Pension contributions | -20.880.000 |
Total taxed revenues | 450.000.000 |
Limit of exempt income and deductions 40% - 1,340 UVT | 56.832.080 |
(-) Dependents | - 16.286.208 |
(-) Interest on mortgage | - 15.000.000 |
(-) Prepaid medicine | - 8.143.104 |
(-) Voluntary pension contributions | - 24.000.000 |
(-) Contributions for construction promotion AFC | - 24.000.000 |
(-) Exempt income 25% - limited to 790 UVT | - 33.505.480 |
Subtotal exempt income and deductions | - 120.934.792 |
Exempt income and deductions limited | - 56.832.080 |
Total net income general tab | 393.167.920 |
Income taxable in UVT | 9.270 |
Income tax in UVT | 2.506 |
Income tax in COP | 106.288.000 |
Non-resident are taxed only on Colombian source income. Resident aliens are taxed under the same rules as those that apply to Colombian nationals.
Colombian residents are subject to tax at graduated rates on worldwide income. However, it is necessary to keep in mind that a person may be required to file an income tax return, but not to pay the tax.In Colombia there are minimum amounts that must be met in certain concepts to be obliged to submit the income tax return to the authority.
Non-residents are subject to an income tax rate of 35%.
Regarding Colombian residents, only people who have net income greater than 1090 UVT (Tax Value Unit, fixed each year – for the year 2023: COP 42.412) are required to pay income tax, under progressive rates. There are three categories of taxable income (income baskets), reductions and tax rates for such baskets.
The following are the income baskets:
- General basket (includes employment income, non-employment income and capital income related to financial interest and rental income)
- Pensions
- Dividends.
An individual is considered fiscally resident in Colombia if remains in the country (continuously or not) for an aggregate period of more than 183 days within a period of 365 consecutive days. If the permanence in the Country finishes in the second year, the person is considered fiscally resident in the second year.
However, if the person is of Colombian nationality, he or she will be a tax resident if he or she falls within some scenarios contemplated in the tax Law, which may include the place of residence of the spouse or dependents, the place where they have their assets and the place from which their income comes from. An individual can also be considered a Colombian tax resident if he/she has tax residence in tax havens or if he/she does not prove tax residence in another country when the Colombian authority requests it.
Employment income is classified to be in the general basket. It includes salaries, wages, bonuses, commissions, fringe benefits, benefits in kind and any other income arising from the labour relationship. Contributions to the mandatory health and pension systems may decrease taxable income.
Exemptions and deductions applicable to employees are capped at 40% of gross income less contributions to the mandatory Social Security System. In any case, deductions and exemptions cannot exceed the annual amount of UVT 5,040.
In general, taxable self-employment is considered to be in the general basket and equals gross income less contributions to mandatory health and pension systems and business expenses applied according to the tax law.
Payments based on shares or social participation quotas are those by virtue of which the worker: (1) acquires the right to exercise an option for the acquisition of shares or social participation quotas in the company that acts as his employer or a related or (2) receives as part of his remuneration or social interest quotas from the company that acts as his employer or a related company.
When it comes to the right to exercise an option to acquire shares or social participation quotas, income will be recognized at the time said option is exercised. If these shares or quotas are received as part of the remuneration, the income will be recognized at the time they are delivered, the worker appears as a shareholder of the respective company or the corresponding account entry is made, whichever comes first.
However, when payments are made in shares under other different assumptions, it is considered that this is a payment in kind.
The source of employment is generally determined by the place where services are performed. However, some fringe benefits attached to compensation such as housing, education, certain relocation costs and local transportation are sourced purely on a geographical basis.
Generally, an individual is liable to pay tax on any benefits (in kind) received. The value of payments or credits in kind that constitute income is determined by the commercial value of the goods at the time of delivery. The value of these is determined, unless proven otherwise, by the price established in the contract.
Colombia does not have concessions available for expatriates.
In 2023, Colombia has agreements in force to avoid double taxation with regard to income tax with the following countries: Japan, France, Italy, United Kingdom, Czech Republic, Portugal, India, Korea, Mexico, Canada, Switzerland, Chile, Spain, and, under the Andean Community of Nations (CAN) with Bolivia, Ecuador and Peru. These agreements aim to eliminate or reduce double taxation of income and assets of residents in both countries, as well as prevent tax evasion.
There is also a Homologation Agreement for the tax treatment of Pension Funds with the Pacific Alliance, signed with Chile, Mexico and Peru.
Foreign income taxes over non-domestic-source income are creditable against Income Tax, subject to certain limitations. Generally, the amount of the credit cannot exceed the sum of Colombian taxes imposed over the same income.
Specific reductions and benefits apply to each income basket, as explained below.
Employment income. Mandatory contributions to health and pension systems reduce taxable income. 25% of earned income is exempt up to 790 UVT per year starting in 2023. Exemptions and deductions applicable to employees are limited to 40% of gross income less contributions to the mandatory Social Security System. Deductions and exemptions may not exceed the annual amount of 1,340 UVT.
The deductions include economic dependents, payments to private health companies, interest and loan payments for the taxpayer's home acquisition, with their own limits.
The exemptions favor voluntary contributions deposited in a Colombian pension fund and deposits in accounts opened in local commercial banks for housing construction promotion (AFC).
There is an additional deduction in the general basket for dependents, who can be up to four dependents and is equivalent to 72 UVT. The following people are considered tax dependents:
- The son under 18 years of age.
- The son over 18 years of age and under 23 years of age who is studying in an institution certified by the competent official authority in Colombia or abroad, as long as the employee pays the education fees.
- Spouse, one of the parents or brother of the employee, who is financially dependent on the employee and who receives income less than 260 UVT in the year, duly certified.
- The spouse, one of the parents or siblings of the employee, or the son over 18 years whose dependency related to physical or psychological factors duly certified.
- There is also a deduction of up to 1% of all types of payments made for the acquisition of goods or services supported by electronic invoice, with a limit of an annual amount of 240 UVT.
Capital gains tax is considered complementary to income tax. Capital gains are extraordinary income that an individual receives from the occurrence of an unusual economic act. The different types of capital gains in Colombian tax legislation are:
- Gains derived from the disposal of assets (stocks, bonds, etc.) held for at least two years.
- Profits derived from the liquidation of a company that has been in existence for at least two years.
- Earnings from inheritances, legacies, or gifts (such as the portion of the estate received by the spouse or heir).
- Profits derived from lotteries or games of chance.
The general tax rate for capital gains in Colombia is 15%, except in the case of profits derived from lotteries, games or similar activities whose tax rate is 20%.
For the sale of real estate, the tax is 15% on the value of the occasional gain, except for the first 13,000 UVT of the value of a residential property.
For the receipt of inheritances and donations, the tax is 15% on the value of the occasional gain.
Investment income is within the general basket. Applicable exemptions and deductions are capped at 40% of net income (including earned and unearned income) and cannot exceed the annual amount of 5,040 UVT.
In Colombia there are no local taxes on individual income. Local taxes usually fall on commercial and industrial activities.
Real estate tax is a municipal tax that is levied annually on real estate located in urban, suburban, or rural areas. The taxpayers of this tax are the owners or possessors of the property.
The tax base for this tax is the current cadastral value of the property, adjusted for inflation. Property tax rates depend on the nature and use of the property and generally range between 0.5% and 1.2%.
This tax is fully deductible for income tax purposes, if it has a causal link with the taxpayer's income-generating activity, except for expatriates.
Employers and employees must jointly pay monthly social security contributions calculated as percentages of the worker's salary. These contributions are the following:
Contribution | Employer percentage | Employee percentage | Condition |
Health | 8.5% | 4.0% | Mandatory for all employees. |
Pensions | 12.0% | 4.0% | The affiliation to the pension system is voluntary for foreign employees if they remain covered under a pension scheme abroad. |
Additional contribution | 0 | 1 to 2 | An additional 1% contribution for pensions must be paid by employees who earn at least four monthly legal minimum salaries (COP4 million) per month. This rate is increased by 0.2%, 0.4%, 0.6%, 0.8% or 1%, depending on the total amount of the salary from 16 to 25 monthly minimum legal salaries. This contribution should only be assumed by the employee. |
Labor risks | 0.348% to 8.7% | 0 | The percentages range from 0.522% to 8.7% of the employee's salary, depending on the risk associated with the type of activity carried out by the employee. This burden should only be assumed by the employer. |
Tax residents are subject to tax on their worldwide wealth. Non-tax residents are subject to tax on wealth held in Colombia, directly or indirectly through a permanent establishment. Wealth Tax is applicable for persons who hold net equity (gross assets less debts) as of January 1 each year that is equal to or greater than 72,000 UVT.
Residents are allowed to exclude the value of their household up to 12,000 UVT.
As follows, the wealth progressive tax rates applicable for 2023, 2024, 2025, and 2026, with values in UVT:
Ranges in UVT |
Progressive marginal tax rate
|
Tax |
|
From | To | ||
>0 | 72,000 | 0.0% | 0 |
>72,000 | 122,000 | 0.5% | (Taxable wealth in UVT* less 72,000) x 0.5% |
>122,000 | 239,000 | 1.0% | (Taxable wealth in UVT less 122,000) x 1.0% + 250 UVT |
>239,000 | Upwards | 1.5% | (Taxable wealth in UVT less 239,000) x 1.5% + 1,420 UVT |
Wealth progressive tax rates applicable from 2027:
Ranges in UVT |
Progressive marginal tax rate
|
Tax |
|
From | To | ||
>0 | 72,000 | 0.0% | 0 |
>72,000 | 122,000 | 0.5% | (Taxable wealth in UVT less 72,000) x 0.5% |
>122,000 | Upwards | 1.0% | (Taxable wealth in UVT less 122,000) x 1.0% + 250 UVT |
The financial transactions tax (GMF, also called 4x1000) is a permanent tax on financial transactions, the collection of which is the responsibility of regulated financial institutions and the Central Bank.
The tax rate is 0.4%, and the taxable event is the carrying out of financial transactions that involve the disposal of resources deposited in checking or savings accounts, as well as in deposit accounts with Central Bank and the issuance of cashier’s checks.
50% of the total tax paid is deductible for corporate income tax purposes, regardless of whether or not the transactions have a causal nexus with the income-producing activity of the taxpayer.
There are operations and transactions that are exempt from this tax, according to the Law.
The Annual foreign asset report was established for those tax resident natural persons who are taxpayers of Income and Complementary Tax who, as of January 1, have assets abroad of any nature that exceed the value of 2000 UVT (COP$ 84824000 in 2023). It is an informative declaration, which does not involve paying any tax, and whose objective is to identify the assets that the taxpayer has abroad.
To comply with this tax obligation, the taxpayer must submit the declaration through the electronic computer services of the national tax authority, using the electronic signature instrument.
For further information on expatriate tax services in Colombia please contact: |
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