PE domestic law
Colombia modifies proposal on Significant Economic Presence
On 6 October 2022, Colombia’s Senate and House of Representatives approved the tax reform bill submitted in August 2022. This bill was subject to changes, inter alia, it modifies the proposal on Significant Economic Presence (SEP). According to the new proposal, a nonresident entity with a SEP in Colombia would be subject to a 10% withholding tax. However, the nonresident entity may opt to assess its income tax l…