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Colombia Announces Tax Reform

Colombia Announces Tax Reform

The government has presented a bill on the corresponding reform. If the bill is adopted, the capital gains tax will be increased, and a progressive corporate income tax rate will be established.

The reform proposes to establish a corporate income tax at a progressive rate depending on the size of the company. The 35% rate is planned to be reduced to 33% for companies with the largest turnover by 2029. And for small companies, this rate will be 27%.

In addition, the minimum corporate tax rate will have to increase from 15% to 20%.

Also, the maximum income tax rate for individuals may increase from 39% to 41%. This applies to tax residents of Colombia with an income of over 31,000 tax units. The income tax may increase from 15% to 20%.

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