Global

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  • Service: Tax, Global Indirect Tax, Mergers & Acquisitions, Global Transfer Pricing Services, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/10/2013

Colombia - Overview of tax reform provisions 

January 10:   Colombia in late December 2012 enacted measures that reform the Colombian tax system. The changes generally are effective beginning in 2013.

Overview of provisions

Among the changes, are measures that:


  • Introduce a new income tax on equity( referred to in English as the “fairness tax”)
    • For 2013, 2014, and 2015, the rate of the "fairness tax" (referred to by its Spanish acronym as “CREE”) is 9%; subsequently, the rate is 8%
    • The tax base generally is the year’s gross revenues (excluding windfall amounts) less returns, rebates, and discounts; certain types of income; costs; certain deductions; and income exempt under the Andean Pact
  • Amend the rules to determine when dividends or share participations are not subject to tax
  • Reduce the general 33% rate of income tax to a 25% rate of income tax for companies and permanent establishments or branches of foreign companies
  • Impose a new tax on foreign capital investment portfolio income
  • Provide a new classification for individual taxpayers—employees and self-employed
  • Modify the sales tax, with new rates of 0%, 5%, and 16% and with new return procedures
  • Set forth rules concerning the tax treatment of corporate reorganizations and mergers (in general, providing for tax-free reorganizations when cash or contributions in kind are made in exchange for shares or contributions) and rules concerning the tax basis of the assets and shares
  • Provide for the amortization of acquired goodwill
  • Amend the transfer pricing rules
  • Revise Colombia’s tax practice and procedure rules
  • Provide for a transition to International Financial Reporting Standards

Read a January 2013 report (Spanish) [PDF 136 KB] prepared by the KPMG member firm in Colombia: Reforma Tributaria 2012



For more information, contact a KPMG tax professional in Colombia:


Carlos A. Bernal B

+ 57 (1) 6188015




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