Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 6/18/2012

Colombia - Income tax treaty with Canada upheld as constitutional 

June 18: Colombia’s constitutional court (Corte Constitucional) concluded that the legislation ratifying an income tax treaty between Colombia and Canada is constitutional.

The court’s decision (Sentencia C-295 de 2012) effectively affirms legislation to ratify the income tax treaty for the avoidance of double taxation and fiscal evasion that Colombia signed with Canada, and the related Protocol.


The Colombia-Canada income tax treaty includes provisions concerning permanent establishments, and provides specific withholding tax rates on payments of dividends (5% / 15%), interest (10%), and royalties (10%).


Effective dates

The Colombia-Canada income tax treaty will enter into force once Colombia and Canada have notified each other that the ratification procedures in each country have been completed.


In Colombia, the treaty will be effective:


  • In respect of income tax—on the first day of January in the calendar year following that in which the new treaty enters into force
  • In respect of other taxes—when the treaty enters into force

To read a June 2012 report (Spanish) [PDF 89 KB], prepared by the KPMG member firm in Colombia: Declaratoria de Constitucionalidad del Convenio para evitar la Doble Tributación entre Colombia y Canadá




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