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MODIFICATION TO THE WITHHOLDING TAX RATE APPLICABLE TO THE EXPORT OF OIL & GAS

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MODIFICATION TO THE WITHHOLDING TAX RATE APPLICABLE TO THE EXPORT OF OIL & GAS

Income tax

The withholding tax rate applicable to the export of hydrocarbons was increased to 3%

 

Through Decree 1123 of 2018, the Ministry of Finance and Public Credit modified section 1.2.4.10.12. of the Decree 1625 of 2016, increasing the withholding rate applicable to the export of oil and gas from 1.5% to 3%.

On the other hand, the withholding tax rate applicable to exports of other mining products, including gold, remained at 1%.

The modification in the withholding tax rate for hydrocarbon export applies as of July 1st 2018. It is important to verify the correct application of the rate; otherwise the withholding agent would be liable for the amounts not withheld.