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ARBITRATION AWARDS AND COURT RULINGS WILL BE TAXED IF THEY HAVE AN ECONOMIC CONTENT

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ARBITRATION AWARDS AND COURT RULINGS WILL BE TAXED IF THEY HAVE AN ECONOMIC CONTENT

This tax is applicable for all individuals, corporations and trusts

 

Individuals and corporations in whose favor a payment is ordered in compliance with an arbitration or judicial ruling, for a value of more than seventy-three (73) legal minimum monthly wages, will be subject to this new contribution. The rate established for this contribution is two percent (2%) of the total value of the payments awarded. However, the contribution may not exceed one thousand (1.000) legal minimum monthly wages.

The payer shall withhold the contribution at the moment of making the payment of the amount ordered by the respective judicial ruling or arbitration award.

This treatment is established in the Article 364 of Law 1819 of 2016.