X

DIAN REVENUE RULING

logo

DIAN REVENUE RULING

Applicable withholding tax rates for services fees and consultancy payments

Withholding agents must characterize the payments according to their nature and the condition of the beneficiaries, in order to determine the applicable withholding tax rate

 

By means of its Revenue Ruling No. 1843 of 2017, the Tax Authority reaffirmed the withholding tax rates that are applicable to services fees and consultancy payments. The withholding rate for fees payed to taxpayers not required to file income tax returns is 10% of the corresponding gross payment.

An 11% withholding tax rate applies for payments made to taxpayers required to file income tax returns. As a general rule, when the beneficiary of the payment is an individual, the applicable rate is 10%. However, there are some exceptions to which the 11% rate may apply.