1. Colombia has concluded double taxation agreements with Canada, Chile, the Czech Republic, France, India, Mexico, ↩ The concept of permanent establishment (PE) for natural persons is defined as follows: “It is also presumed that there is a permanent establishment in the country/jurisdiction when a person who is not an independent representative acting on behalf of a foreign enterprise has or ordinarily exercises in the country/jurisdiction powers to enter into agreements or contracts binding on the enterprise. The 2016 Double Taxation Convention was signed on 2 November 2016. It entered into force on 13 December 2019. Companies established in Colombia and non-resident companies with permanent establishments in Colombia must file an annual income tax return. Each year, the national tax administration sets the deadlines, usually between March and April of the year following the end of the tax year to be declared. When the resident unit is liquidated during the tax year, income tax is recorded for part of the year and must be paid. The fine for late filing is 5% per month of the tax payable, up to 100% of the tax payable or withholding tax. The taxable person shall be responsible for the calculation and payment of all interest incurred for the late submission. To the extent that the person is entitled to discharge within the meaning of the article on personal services dependent on the applicable double taxation convention, there may be no tax liability.
In addition to Colombia`s national tax regime, which provides for double taxation relief by granting a tax credit for taxes paid abroad for foreign income within the limits set by law, Colombia has concluded tax treaties to prevent double taxation with Chile, Spain, Switzerland, Mexico, Canada, Portugal, India, the Czech Republic, Portugal, South Korea and the countries/jurisdictions of the Andean Community (Peru, Bolivia and Ecuador). Colombia negotiates contracts with France, Britain, Italy and Japan, among others. The most important territorial taxes (departmental and local taxes) are the industrial and professional tax, the property tax and the registration tax. With regard to the prevention of double taxation and the prevention of tax evasion, Colombia has increased the number of double taxation treaties signed and has implemented certain BePS (Base Erosion and Profit Shifting) measures. . . .