🇨🇴 Colombia · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
Quick answer
Colombia taxes residents on worldwide income. You need a RUT/NIT from DIAN, employers withhold monthly (retención en la fuente), and individuals above the thresholds file an annual return in the DIAN e-filing window; VAT (IVA) applies to most goods and services.
Taxes are administered by the tax and customs authority (DIAN). Companies pay corporate income tax, and VAT (IVA) applies to most goods and services.
- The general corporate income tax rate is 35%.
- The standard VAT (IVA) rate is 19%.
- Electronic invoicing and online filing are handled through DIAN.
Step-by-step
- 1
Determine your residency
You are generally a Colombian tax resident if you spend more than 183 days in the country in a 365-day period; residents are taxed on worldwide income.
- 2
Get a RUT/NIT
Register with the tax authority (DIAN) for a RUT and NIT, and obtain an electronic signature to file.
- 3
Understand the taxes that apply
Identify income tax (with a unified 'cédula' system), VAT (IVA) for businesses, and mandatory social-security contributions.
- 4
Have withholding applied
Employers apply monthly withholding at source (retención en la fuente) to salaries.
- 5
File the annual return if required
File the annual income tax return in the DIAN e-filing window if your income, assets or transactions exceed the thresholds.
- 6
Pay, keep records and get advice
Pay in the allowed instalments, keep records, and get advice on residency and foreign income.
Checklist
- Residency determined (183 days / 365-day period)
- RUT + NIT from DIAN + electronic signature
- Applicable taxes identified (income tax, IVA, social security)
- Monthly withholding (retención en la fuente)
- Annual return if above thresholds
- Instalments paid
- Records kept
- Advice on residency / foreign income
Official authorities
- DIAN
Tax and customs authority.
Frequently asked questions
Who must file an income tax return?
Individuals whose income, assets, purchases or bank movements exceed the annual thresholds set by DIAN.
What is retención en la fuente?
It is withholding at source, deducted by employers and payers as an advance of income tax.
Who is a Colombian tax resident?
Broadly, someone present in Colombia more than 183 days in any 365-day period.
Official-information aggregation, not legal advice. Always verify on the authority's own site.