Pacific Alliance signs a free trade agreement
On February 10, at the eighth summit meeting of heads of state from the Pacific Alliance (PA), comprised of Chile, Colombia, Mexico, and Peru, a deal was signed that will remove 92% of tariffs on goods and services traded between the four countries.
See MoreColombia – New form for reporting withholding tax information
Colombia’s tax administration has recently released a new form to be used to make monthly information reporting of withholding tax. Form 350 reflects changes from the prior version of the form. Changes contained in the new form include a
See MoreColombia – New criteria for determining large taxpayer issued
Colombia’s tax administration has issued guidance establishing new criteria for determining who qualifies as a “large taxpayer”. Being identified as a “large taxpayer” may affect specific arrangements for paying taxes, and may affect both
See MoreColombia: Filing deadlines for large taxpayers
Colombia has issued Decree 214/2014, under which taxpayers qualifying as large taxpayers as of 31 January 2014 (previously, 31 December 2013) must file their income tax returns between 1 March 2014 and 24 April 2014 within the deadlines established
See MoreColombia: Thin capitalization provision
Under the Decree 3027 of 27 December 2013, the thin capitalization provisions interest is fully deductible up to a debt to equity ratio of 3:1. This applies to domestic and foreign loans from related or unrelated
See MoreColombia: Definitions for classification of resident individuals
Decree 3032 of 2013 has just been reported clarifying the classification of resident individuals into the employee and self-employed categories. The same Decree provide key definitions for employee; self-employed; personal service; liberal
See MoreColombia: Thin capitalization provisions
The Colombian government issued Decree No. 3027 on 27 December 2013 to clarify thin capitalization rules under Art. 118-1 of the Colombian Tax Code; the Decree applies from 1 January 2014. Under the thin-capitalization regime, interest generated on
See MoreColombia: Proposal to Postpone the Scheduled Reduction of Financial Transactions Levy
It was published on 31 December 2013 that, during a jointly held session on 30 October 2013, the third and fourth permanent economic Constitutional commissions from both the Chamber of Representatives and the Senate approved, on first debate, bill
See MoreColombia: CREE Fair Tax Decree Issued
“Fair tax” is introduced by the Decree 2701 of 2013. “Fair Tax” is a tax which is payable by resident companies and non-resident companies deriving their income through a permanent establishment in Colombia. The decree was issued by the
See MoreColombian Sales Tax on Exports Get Exemptions
According to Decree of 2223 of 11 October 2013, the Colombian tax office has issued up-to-date guidance on the rules for applying VAT exemption on the export of services to foreign corporations. The conditions which must be present to qualify for a
See MoreColombia: Decree Listing Tax Havens
Colombia’s Ministry of Finance and Public Credit on 7 October 2013 issued Decree 2193. That Decree includes a list of the countries, jurisdictions, domains, associated states or territories which are tax havens for tax purpose. Jurisdictions like
See MoreColombia-Israel FTA signed
Colombia and Israel has signed a Free Trade Agreement (FTA) in Jerusalem on September 30, 2013. According to Tourism and Industry Minister, the agreement has reached after 18 months of negotiations and under the agreement, import tariffs will be
See MoreColombia: Low-Tax Jurisdictions
Decree 2193 issued on 7 October 2013 and applicable for income tax purposes as from 1 January 2014, establishes the list of countries and territories that are considered low-tax jurisdictions. For a 1-year term, certain jurisdictions are not
See MoreColombia: Agreement with World Bank on Tax Matters
The World Bank signed an agreement with Colombia on August 19, 2013. This is to improve its tax collection. The agreement will be in force between August 2013 and August 2015. In order to strengthening the tax system, the World Bank will supply
See MoreEU: FTA with Peru and Colombia
A free trade agreement (FTA) between the EU, Peru and Colombia signed on 26 June 2013.The agreement will enter into force after ratification procedures are completed. The agreement introduces technical and procedural obstacles to trade. The
See MoreEU: FTA between Colombia and EU entered into force
The European Commission announced on 26 July 2013 that the Free Trade Agreement (FTA) between the European Union and Colombia will enter into force on 1 August 2013. This agreement was signed on 26 June
See MoreColombia and Mexico DTA will enter into force on 11 July 2013
The Income and Capital Tax Treaty between Colombia and Mexico will enter into force on 11 July 2013. The treaty will be applicable in Mexico from 1 January 2014 and in Colombia from 1 January 2014 for income tax matters and from 11 July 2013 for
See MoreColombia: Proposed Regulations for Bank Debit Tax
The Colombian Government is currently preparing a Decree, which will regulate the provisions of bank debit tax. This bank debit tax was introduced by Law 1607 of 2012. This proposed Decree will provide for exemptions and the refund of the bank debit
See More