Tax Advisory Services in Colombia
Operating a business in Colombia comes with a complex set of responsibilities, particularly when it comes to tax compliance at the national, territorial, and district levels especially in Bogotá. With frequent changes in tax laws, regulations, and procedures, staying up to date is essential. Reliable tax and accounting services, combined with top skilled professionals who can accurately interpret industry specific legislation, are crucial for minimizing operational risks and avoiding costly penalties.
Get the right tax services
Business Tax Planning
Colombian tax laws are designed not only for revenue collection but also to incentivize the financial sustainability of businesses. As a result, strategic tax planning is essential to manage the taxes applicable to each economic activity and to fully capitalize on available legal benefits.
Our accounting and tax advisory services consider key aspects such as:
| • Corporate structure | • Territory of operation | • Applicable benefits |
| • Tax impacts | • Utilization of tax credits | • Investment plans |
Through a comprehensive approach, our experts design strategies that optimize tax burdens, ensure regulatory compliance, and contribute to the sustainable growth of your business.
Tax Compliance
After completing tax planning, your company gains a precise understanding of its fiscal obligations. From there, we establish robust accounting policies to accurately recognize, record, and manage the taxes owed or collected. As part of our comprehensive tax consulting services, we provide a detailed calendar outlining tax filing and payment deadlines, ensuring timely compliance with all obligations. Our team of experienced agents offers comprehensive, personalized support during this critical phase.
Below, you will find information on some of the most common formal obligations applicable in Colombia
The unified national tax, which includes occasional earnings, applies to legal entities, individuals, and assimilated entities. It taxes profits that result in an increase in assets unless expressly exempted by law.
It is a mechanism for the advance collection of taxes at both the national and municipal levels, including taxes such as Income Tax, VAT, and Industry and Commerce. Its base and rate are determined by the nature of the transaction and by a clear delineation of the territoriality of the taxable event.
It is a territorial tax, and it taxes the gross income obtained from services, commercial and industrial activities, its base is made up of all ordinary and extraordinary income obtained in the respective taxable year. The rates are determined by the municipal or district councils and vary between 2 and 14 per thousand.
In Colombia, taxpayers must report summaries of transactions with customers, suppliers, employees, and other third parties, following the requirements set by national or local tax authorities.
This information is used to verify tax returns and identify parties required to meet their tax obligations.
The Unified Tax is an optional regime that aims to simplify taxation by consolidating income tax, consumption tax, and industry and commerce tax into a single levy.
The rate depends on the annual gross income and the nature of the business activity, ranging from 1,2% to 14% on both ordinary and extraordinary gross income earned during the taxable year.
Income Tax Filing for Individuals
In Colombia, both Colombian nationals living abroad and foreign individuals may be required to file an income tax return with the DIAN if they are considered tax residents or if they receive income from Colombian sources and meet the annual thresholds established by law for income, assets, purchases, or financial transactions. In certain cases, filing may not be required when all income has been fully subject to withholding at source, in accordance with Articles 407 to 411 of the Colombian Tax Code (ET).
Our expert tax consultancy ensures full compliance while helping you optimize your tax position. We guide you through the entire process, including RUT registration and the preparation of supporting documentation and tax certificates to accurately determine your tax liability.
Additionally, we assist with the reporting of foreign held assets when applicable and with the proper application of tax credits. Our personal tax services ensure compliance and streamline your tax filing process, making the experience efficient and stress-free.
Refund of Favorable Tax Balances
When a tax return results in a credit balance, an individual or legal entity may request a refund or a credit (offset) of that amount from the DIAN, in accordance with Colombian tax regulations. It is advisable to carry out this process with the support of a tax advisor to ensure proper compliance.
These favorable balances usually arise from tax withholdings at source, self-withholdings, or deductible costs and expenses that exceed taxable income during the fiscal year. Recovering these balances can improve liquidity and strengthen cash flow.
If the refund request is viable, all required documentation and supporting certificates are prepared and filed with the tax authority. Proper document management is essential to support future audits or reviews. Our tax advisory team provides assistance throughout the entire process, including during any verification procedures conducted by DIAN, ensuring full regulatory compliance.