Colombian Taxes: Withholding Taxes Required On Services Provided By Individuals

The new tax reform law 2277 of 2022 modified article 383 of the Colombian tax code, from which it is important to explain the changes given to said regulations when we practice withholding at source—Retención en la Fuente—to natural persons providing such personal services.

The first thing would be to say that the written statement that was required before the reform is no longer required, currently all personal services provided by natural persons are subject to the application of the withholding table at the source of article 383 of the E.T.

This means that for the concepts of services such as fees, commissions, transport services, maintenance and all those where the provision of a personal service is remunerated, the rates of 11%, 10%, 6%, 4%, 1% will no longer apply, but will be settled as the withholding for work income established in article 383 of the tax statute is settled.

It is clear that this does not affect the obligation to verify the respective contributions to health and pension plans, for their deductibility.

For guidance, contact:

JUAN CARLOS ROLDAN O.  & HUMBERTO RODRIGUEZ G.
Chartered Public Accountants

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This guest article is published as a courtesy to readers. Finance Colombia is a news publication and does not provide financial, legal, or tax advice. This information is provided as general news and the reader must consult is or her own counsel in order to make qualified, informed decisions. Information, rules, procedures, and laws may (and almost certainly will) change, and Finance Colombia assumes no responsibility for accuracy or timeliness of information.

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