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Colombian Tax Authority Issues Ruling that Payment to Foreign Providers for Services through Mobile Applications are Subject to Tax

|Approved Changes|Colombia
Colombia

According to a recently published ruling from the Colombian tax authority (DIAN), services provided by non-resident providers to Colombian consumers through mobile applications are considered Colombian-source income and are subject to tax. Payments for such services are subject to 1.5% income tax withholding and 16% value added tax to be withheld by the financial entity processing the related d…

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