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Colombia - Eritrea — Orbitax Withholding Tax Rates

Capital Gains

  • Best Rates15%
  • Domestic Rates 15%
  • Treaty Rates-
  • EU Rates-

Domestic

Capital gains from the sale of shares in a private resident company by non-residents are taxed at the rate of 15% (increased from 10% effective from 1 January 2023).

Dividend

  • Best Rates20%
  • Domestic Rates 20%
  • Treaty Rates-
  • EU Rates-

Domestic

The standard withholding tax rate on dividends is 20% (increased from 10% effective from 1 January 2023), including on dividends received by permanent establishments in Colombia of foreign companies. The withholding tax applies on dividends paid out of profits generated in 2017 and subsequent years that are declared after 31 December 2018. If dividends are distributed from profits not taxed at the corporate level, the standard corporate tax rate applies, and after deducting such amount, an additional 20% (increased from 10% effective from 1 January 2023) is withheld.

Interest

  • Best Rates15%
  • Domestic Rates 15%
  • Treaty Rates-
  • EU Rates-

Domestic

From 2019, withholding tax rate on interest is 15% where the term of the loan is at least one year, and 20% if under one year.

Royalty - Copyright

  • Best Rates20%
  • Domestic Rates 20%
  • Treaty Rates-
  • EU Rates-

Domestic

From 2019, the withholding tax rate on royalties is increased to 20% (previously 15%). For software licensing fees, the rate is reduced to 20% (previously 26.4% - 33% on 80% of the amount).

Royalty - Patent

  • Best Rates20%
  • Domestic Rates 20%
  • Treaty Rates-
  • EU Rates-

Domestic

From 2019, the withholding tax rate on royalties is increased to 20% (previously 15%).

Royalty - Trademark

  • Best Rates20%
  • Domestic Rates 20%
  • Treaty Rates-
  • EU Rates-

Domestic

From 2019, the withholding tax rate on royalties is increased to 20% (previously 15%).

Sales

  • Best Rates0%
  • Domestic Rates 0%
  • Treaty Rates-
  • EU Rates-

Service - Management

  • Best Rates33%
  • Domestic Rates 33%
  • Treaty Rates-
  • EU Rates-

Domestic

From 2019, the withholding tax on payments for management and related services directly or indirectly to a foreign parent is increased to 33% (previously 15%).

Service - Technical

  • Best Rates20%
  • Domestic Rates 20%
  • Treaty Rates-
  • EU Rates-

Domestic

From 2019, the withholding tax rate on payments for technical services and technical assistance is increased to 20% (previously 15%).