Tax
From The Report: Colombia 2016
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For some time now Colombia has been adapting its tax system with the best tools provided by international tax law in order to compete in the global arena. At the same time, the government is focusing on internal tax collection and is searching for a better distribution of the tax burden among the various actors who contribute to producing the country’s riches. This chapter provides an overview of Colombia’s tax system, covering in particular areas of special interest to international investors, such as income tax, taxation of foreign companies, value-added tax, wealth tax, as well as recent measures to harmonize the tax code in line with international guidelines.

This chapter includes a viewpoint from Zandra Guerrero, Acting Partner, BDO.

Articles from this Chapter

Overview

Levying changes: A look at the Colombian tax legislation and recent adaptations
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Colombia is one of the Latin American countries that offer the most opportunities for economic development and investment. In fact, the IMF classifies the country as the fourth-most-important economy in Latin America, and in 2015 Fortune magazine listed it as one of seven new destinations for investment, along with India, Indonesia, Malaysia, Mexico, Poland and Kenya. According to The Economist magazine, the economies of the so-called CIVETS group (Colombia, Indonesia, Vietnam, Egypt, Turkey and…

Analysis

New standards: Harmonising the tax code in line with international guidelines
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Colombia is harmonising its fiscal legislation with international tax law, in particular the guidelines developed and applied by members of the OECD. With the exception of regional integration agreements, there are no legislative, executive or judicial international bodies which regulate financial matters between countries. The methods used to determine the regulations to which international transactions are subjected are influenced by internal legislation and treaties to avoid double taxation. One…

Viewpoint

Protective measures: Zandra Guerrero, Acting Partner, BDO, on the importance of conducting due diligence
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In view of the fact that economies are strengthened through accelerated, and in some cases, sustainable growth, businesses and economic groups seek to expand through mergers and acquisitions as a corporate economic strategy. In these processes, it is of vital importance for the investors to be able to identify possible risks or contingencies associated with the assets, liabilities and businesses that could have an impact on the transaction. For this reason, the due diligence process was developed…