The government of Colombia on 19 October 2016 presented to Congress a bill that would introduce tax reform changes that are intended to balance the budget and preserve the country´s BBB investment-grade credit rating.
The government intends for Congress to vote on the bill before the end of the calendar year so that the measures would be enacted by 1 January 2017.
Given the significant loss of revenue from the oil sector (due in part to low international oil prices), the pending legislation includes measures intended to raise revenue by:
The bill also includes provisions that would adjust Colombia’s income tax system—with some measures reflecting the OECD’s base erosion and profit shifting (BEPS) project recommendations. Along these lines, the bill includes what are viewed as ambitious and complex structural changes to the existing tax law. The bill includes 311 articles targeting the following objectives:
Some of the proposed legislative changes, possibly affecting investors in Colombia, would be the following measures.
Read an October 2016 report (Spanish) [PDF 499 KB] prepared by the KPMG member firm in Colombia
For more information, contact a tax professional with KPMG’s Latin America Markets practice or with the KPMG member firm in Colombia:
Devon Bodoh | +1 (202) 533 5681 | firstname.lastname@example.org
Alfonso A-Pallete | +1 (305) 913 2789 | email@example.com
Eric Thompson | +57 (1) 618 8122 | firstname.lastname@example.org
Vincente Torres | +57 (1) 618 8000 | email@example.com
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