A new tax reform law—Act 1819 of 2016—has been enacted in Colombia.
Most of the tax provisions are effective 1 January 2017.
The legislation is viewed as the most ambitious tax reform in decades, and it includes complex structural changes aimed at:
Among the tax reform provisions that may affect investors are measures to address tax evasion by:
The legislation also includes the following provisions that are intended to simplify the corporate income tax system by:
Accordingly, with this tax reform, the corporate income tax will have the following rate schedule (applied beyond a limited profit threshold):
Companies operating under the free zone regime will be subject to a 20% rate of corporate income tax.
There is an increase in the tax rate on deemed income relating to increases in a taxpayer’s net worth (i.e., the increase in the value of a taxpayer’s assets); the rate is increased from 3% to 3.5%.
Other changes to the income tax law:
The legislation also revises and refines tax accounting standards based on IFRS rules.
Read a January 2017 report (Spanish) 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:
Alfonso A-Pallete | +1 (305) 913 2789 | firstname.lastname@example.org
Eric Thompson | +57 (1) 618 8122 | email@example.com
Jessica Massy | +57 (1) 618 8000 | firstname.lastname@example.org
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