Legal Bulletin



Withholding tax rate for Migrant Workers under ILO Convention

DIAN reiterates the withholding tax rate that is applicable to Migrant Workers


In its Revenue Ruling No. 10479 of May of 2016, DIAN clarifies that since year 2013, the factor that determines taxation is the residence criteria and not the nationality.

In accordance with the International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families, if the foreign worker is in analogous circumstances to a national in terms of residence, income tax will be determined by applying the rate provided on Section 241 of the Tax Code, i.e. the rate that is applicable to a national resident.

In contrast, if the requirements to be considered a resident are not met, the tax will be determined in accordance with Section 247 of the Tax Code.