About Colombia
Colombia is Latin America’s fourth-largest economy, offering a strategic location between North and South America, a young skilled workforce, and growing sectors in technology and services.
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How To Expand Your Business Globally with TKEG Expat's Global Business Tax Advisory Services, designed to assist SMEs in Chinese Mainland and beyond with their international expansion plans. Our team of experts at TKEG Expat provides comprehensive tax advisory services to clients worldwide, ensuring compliance with local tax laws and maximizing tax savings. With our extensive knowledge and experience, we guide businesses through the complexities of global tax regulations, helping them achieve their international expansion goals. Trust TKEG Expat to be your partner in navigating the global business landscape.
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Frequently Asked Questions
France is phasing in a mandatory B2B e-invoicing/e-reporting obligation. From 1 September 2026 all French companies must connect to an accredited platform to RECEIVE invoices (initially from large companies). From 1 September 2027 they must also ISSUE their own sales invoices through such a platform. Invoices must flow through certified/approved e-invoicing software connected to the French tax authority's platform; companies should prepare in advance.
For the AML / risk report that lawyers, banks and agents in Spain (and the EU) must produce, the client has to evidence that their activity generated income. A corporate income-tax settlement/liquidation certificate (in Spanish or English) is preferred. If no tax return is available, income can instead be evidenced through commercial contracts and invoices, or — as a last resort that carries higher risk — via a KYC form used as a sworn declaration.
For legal-entity-shareholder incorporation in the Netherlands: (1) provide a shareholding ownership chart (UBO piercing) identifying every natural person who ultimately holds, directly or indirectly, more than 25% of the new company — for complex structures this chart must be certified by a lawyer or accountant in the parent's home country and then apostilled; (2) the corporate documents (articles/constitution and business licence) must be in English, so a separate translation is unnecessary if the notarization already produces a certified English translation; (3) address proof is required for the holding company's legal representative and for the ultimate beneficial owners; (4) the notary may require a video call at their discretion; and (5) if the holding company itself has a complex/legal-entity ownership, a separate legal-entity-shareholder background-check product must be purchased.
Gibraltar is not in the EU and is not within the UK customs territory; companies set up there are essentially offshore. It is generally not suitable for a business that needs an EU presence, such as a European e-commerce or independent-site operation.
No. The firm does not provide services directly tied to the client's products (such as product-specific compliance registrations); its scope is corporate/company services.
No. Irish authorities no longer accept online notarization; documents must be notarized in person. For forms where the notary must fill in information, a Hong Kong notary is preferred because mainland China notaries often will not complete such forms.
Yes. To begin operating in Spain — for example to hire employees — the company needs a local (Spain-resident) person.
Check the person's residence card/permit: it must explicitly state that work is authorized. If the card does not state work authorization, the person is not permitted to work.
No standalone office rentals are available inside the Shannon free trade zone; the model there is whole-building usage. Address registration or serviced-office hanging there is generally not feasible unless the client intends to take an entire building.
Yes. Spanish notaries (Notarios) generally do not treat foreign corporate documents as Spanish 'public documents', so they require a Hague apostille (legalisation) before the documents can be used in a Spanish corporate procedure — this applies even to documents issued in another EU/EEA country.
For a French SARL, the paid-up (released) portion of the cash share capital must be at least 50% of the share capital at incorporation. Any remaining unpaid portion treated as a contribution in kind triggers the mandatory appointment of a contributions auditor (commissaire aux apports). Where a notary handles the capital verification, 100% cash paid-up is required.
Business-friendly environment:
Colombia requires all companies to comply with International Financial Reporting Standards (IFRS), also known as NIFF, to ensure compliance is crucial, and violations may result in substantial fines.
Tax incentives:
Colombia offers a variety of tax incentives, including reductions in taxable base, deductions from payable taxes, and refunds of paid taxes to taxpayers. These incentives involve income tax or value-added tax (VAT), which are the main taxes collected by the Colombian government.
Specific tax regimes:
In addition to corporate income tax, Colombian companies may also face carbon tax and registration tax. The carbon tax is based on the carbon content of fossil fuels. The registration tax rates vary depending on the circumstances, with rates for documents registered with the Chamber of Commerce ranging from 0.3% to 0.7%, and rates for documents registered at the notary's office ranging from 0.5% to 1%.
Tax rate reductions for specific companies or sectors:
Certain companies, such as state-owned and mixed economy companies, publishing companies, hotels and theme parks, and non-profit entities, enjoy a 9% income tax rate incentive. Qualified enterprises within free trade zones benefit from a 20% reduced tax rate. Additionally, income from Colombia's rural development, unconventional energy sales, and technological value-added industries and creative activities is exempt from tax.
General CIT Rate
35 (surcharges may apply)
CIT Return Due Date
Between April and May, depending on the tax ID of each taxpayer.
CIT Payment Due Date
According to the type of taxpayer, the CIT payment may be due in April to May with the CIT declaration form, or it may be due in July as the third installment.
CIT Estimated Payment Due Date
Big taxpayers: 3 installments. Other taxpayers: 2 installments.
Resident Withholding Tax (Dividend/Interest/Royalty)
N/A
None-Resident Withholding Tax (Dividend/Interest/Royalty)
20/20/20
General VAT Rate
19
General Capital Gain Tax Rate
15
Composite Effective Average Tax Rate
32.93%
Composite Effective Marginal Tax Rate
32.59%
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