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.

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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 tax on the sale of goods or the provision of services, with some exceptions defined by law. It is collected and declared by those responsible defined in article 476 of the tax statute. The general rate is 19% with a differential rate of 5%.

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 10 per thousand.

There is an obligation to report a summary, under the standards defined by the control entities of the National, District, or municipal order, the operations carried out with clients, suppliers, employees, or other third parties, which have been carried out during the taxable period.

Its purpose is to carry out crossings of information of taxpayers and those responsible for taxes and guarantee the correct presentation of the returns, identify subjects obliged to present, and pay their formal duties with the State.

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 2.6% to 13.6% on both ordinary and extraordinary gross income earned during the taxable year.

Expatriate Income Tax Filing in Colombia

In Colombia, both nationals living abroad and foreign individuals must file an income tax return with the DIAN if they meet the annual thresholds established by law for assets, income, purchases, or bank transactions.

Our expert tax consultancy ensures full compliance with this obligation while optimizing your tax benefits. We guide you through the entire process, including RUT registration, guide you with the necessary documentation, and certificates to minimize your tax liability.

Additionally, we assist with filing declarations for foreign-held assets when applicable. If you qualify for a tax credit, we can manage your refund process efficiently. Our personal tax service ensures compliance and streamlines your tax filing experience, making the entire process smooth and hassle-free.

Refund of Favorable Tax Balances

When a tax assessment results in a credit balance, an individual or legal entity can request a refund or offset of this amount from DIAN or the Treasury Department. It is advisable to undertake this process with the guidance of a tax consultant.

These favorable balances arise from withholdings, self-withholding, or higher expenses relative to income in the ordinary course of business. By obtaining a refund of these balances, liquidity is improved and cash flow is optimized.

If the refund request is viable, the necessary documents and certifications are prepared and submitted. Proper management of documentation is crucial to facilitate future audits. Our team of tax advisors will support you throughout the entire process, including during visits from the tax authority, ensuring full compliance with your tax obligations.