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Companies in Colombia will soon have to confront a new tax, the Minimum Income Tax (TTD), that requires them to pay 15% of profits regardless of size.

Misunderstanding of Colombian tax law can lead to extremely costly double taxation & expensive penalties - even jail!

The bill imposes new income taxes on Colombians earning more than $2,000 per month, plus petroleum & mining exports.

Another aspect is the normalization tax complementary to income tax. This 17% tax would be reincorporated with the purpose of normalizing omitted assets or nonexistent liabilities, and would be in force for the year 2022. During 2021 an advance payment of 50% must be made.

Tuesday was a historic day in Colombia - not because the football team managed to snatch a 2-2 draw against Argentina in a World Cup qualifier, but because it represented the first time ever that local investors could buy and sell Chilean stocks in local currency.

The collapse in oil prices has led ACP, Colombia's petroleum industry association to call on the country's government to allow flexibility in the regulated pipeline transportation costs, that now make up almost half the cost of a barrel of oil, says the trade group.

Colombia's Central Bank, Finance Ministry, and Financial Regulator met today to discuss the rapidly deteriorating global financial situation fueled by coronavirus, outbreak of petroleum price war, and a falling currency value.

In an effort to simplify how business is conducted (and taxes are assessed), many national governments enter into legal agreements designed to clarify the law and mitigate double taxation. The ultimate goal of these agreements is to encourage economic activity and investment...

Santos signed three new directives aimed to support technology development and innovation, including a tax break for certain software and training programs.

Editor’s note: Adrian Rodriguez, partner with the international law firm Lewin & Wills, has graciously allowed Finance Colombia to reprint the answers he prepared for a professional symposium for the benefit of our readers. Mr. Rodriguez may be contacted at the above links....