Tax & Accountancy
From The Report: Colombia 2013
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This chapter offers a comprehensive overview of the tax reform introduced in 2012, which sought to increase transparency and participation and affected a number of important areas, such as capital gains, mergers, share acquisition, branch profits and equity contributions. Among other changes, the reform reduced the capital gains tax, introduced the concepts of thin capitalisation and income tax for equality, as well as a registration tax on cash contributions.
This chapter features a viewpoint from Eduardo Calero, Partner, PwC, on the implications of the reform.

Articles from this Chapter

Overview

Accelerating reform: Changes to the tax regime target transparency and participation
OBG
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The tax reform approved by the government in December 2012 (Law 1607 of 2012) introduced important changes to the way foreign investors can acquire shares or an interest in Colombian companies. Prior to the reform, the acquisition of shares by foreign investors entailed the purchase of the goodwill, the cost of which was tax deductible against future profits of the operating company being transacted. IMPACT: The tax reform discarded the idea of taking the amortisation of the mercantile credit…

Viewpoint

Eduardo Calero, Partner, PricewaterhouseCoopers, on tax reform
OBG
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The tax reform approved in December of 2012 produced a series of important changes in the business environment, the most important of which were the reduction of corporate income tax from 33% to 25% and the creation of a new equality tax (CREE). This generated a bit of confusion in the first months of 2013, especially in regards to the issue of how the CREE would be viewed within local and international financial statements. Despite this, the reform incorporates rules that benefit the system, such…