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DIVIDENDS TAX FOR PROFITS DISTRIBUTED TO COLOMBIAN COMPANIES

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DIVIDENDS TAX FOR PROFITS DISTRIBUTED TO COLOMBIAN COMPANIES

Corporate Income Tax 

Dividends distributed to Colombian companies out of profits that were taxed at the corporate level, will be subject to a dividend tax of 5% (before it was 0%)

 

Dividends distributed as from January 1st of 2019 to Colombian companies out of profits that were taxed at the corporate level, will be subject to a dividend tax of 5%

On contrary, dividends distributed to Colombian companies out of profits that were not taxed at corporate level, will be subject to the applicable general income tax rate.

The dividends tax will only be triggered once at the moment dividends are distributed to the first Colombian shareholder. A tax credit will be allowed to the final beneficiary (individual)”.