Colombia introduced dividend tax

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According to law 1819 of 2016, Colombia introduced a dividend tax on profits derived as of 1 January 2017, summary as follows:

(i) Taxable dividends are subject to 35% final withholding tax and 5% final withholding tax may apply on non-taxable dividends applicable for non-resident companies;

(ii) Taxable dividends are subject to 35% final withholding tax and 5% final withholding tax may apply on non-taxable dividends applicable for non-resident individuals; and

(iii) Following rates are applicable on dividends income by resident individuals:

Dividends Threshold Applicable Rate
Taxable dividends distributed by a resident company Any amount 35.00%
Dividends distributed by a non-resident company Any amount 35.00%
Non-taxable dividends Up to 600 tax value units (TVUs) 0%
600 – 1,000 TVUs 5.00%
over 1,000 TVUs 10.00%

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