23. Taxes rates

Below are listed and specify each of the major taxes that exist in Colombia: 

Income and windfall: The income tax has national coverage and is levied on profits from ordinary business operations. The windfall tax is complementary to income tax and is levied on profits from activities not covered by ordinary operations. Tax: 25% windfall: 10%. 

 

Income Tax on Equity (CREE): is a national tax and is a contribution of legal persons for the benefit of workers, job creation, and social investment. It is applied on income are likely to increase the assets of the companies. 9% 

 

Value Added Tax (IVA): A national indirect tax on the provision of services and sale and import of bienes.0% 5% or 16% rates depend on the good or service. 

 

Consumption tax: indirect tax on vehicle sectors, telecommunications, food and beverages. 4% 8% 16% 

Tax on Financial Transactions: Tax applied to each transaction intended to withdraw funds from current accounts, savings and cashier checks. 0.4% per transaction. 

 

Industry and Trade Tax: Tax applied to industrial, commercial and service activities within the jurisdiction of a municipality or district for a taxpayer with or without commercial establishment, it is charged and managed by municipalities or districts concerned. Between 0.2% and 1.4% of company revenues. 

Property Tax: Tax on an annual basis the right to own, use or possession of immovable property located in Colombia, which is collected and managed by municipalities or districts where the property is located. From 0.3% to 3.3%. 

 

National stamp tax: is the tax generated in the logging of all contracts and public instrument including securities that are executed or accepted in the country signed between individuals with the state or private whose act is greater than 53,000,000pesos and liquidated a flat rate of 1.5% 

 

Withholding: Before making a payment for services rendered, fees, purchases, leases, etc. should be assessed if the client is auto retainer income (validated in the Rut or invoice), otherwise you must apply or discount a value concept withholding tax, which is paid the following month accumulating all concepts. 

 

Rates of Withholding: Rental of buildings and shopping: 

A persons income tax filers (usually are companies) 2.5% of the value before VAT, 3.5% non-filers. For amounts over $ 742,000 

Fees for respondent 11% and not 10% respondents have no minimum. 

General reporting services to 4% to 6% reporting no minimum amount $ 110,000. 

Hotels, restaurants and Ranch for reporting 2.5% and non-respondents (individuals) 3.5% minimum amount $ 110,000. 

 

In line with the taxes that exist in Colombia, it is worth mentioning that many of the markets and foreign investors have wanted to compete in the market for textiles due to large installations that present our economic system on taxation, however, is worth mentioning in recent years in Colombia that have implemented policies that harm free trade within the different products and services and therefore is more difficult to compete with larger companies that have all kinds of immense capital to keep its economy afloat. Despite this, it is believed that due to being an attractive country for large investors, could eventually support the fashion industry to establish itself as a thriving industry or a single growing investor interest in the products and services to provide capital to grow and become a highly respected company in the country and maybe someday in the world.