Stamp Tax

Contractual documents, either private or public, are subject to stamp tax, based on the total contractual price, at a rate of 0.5%. The parties to a contract may agree that each party covers 50% of the total tax. This tax applies only to those documents whose contractual value exceeds approximately US$36,000.

Industry and Commerce Tax

Business and industrial concerns are liable for industry and commerce tax. This tax, which is levied by the municipalities, is based on sales and gross receipts from services rendered. Rates are defined by the authorities of the municipality with jurisdiction over the place where the activity occurs.

Every municipality is allowed to define the tax rate within a range from 0.3% to 1%. Colombian companies and individuals that carry out industrial and commercial activities are liable for filing and paying industry and commerce tax on the filing dates determined by the municipal authorities.

Municipal Property Tax

Both urban and rural properties are subject to annual municipal property tax. This tax is based on the taxpayer's real estate appraisal. The rates are defined by the authorities of the municipality with jurisdiction over the place where the real estate is located.

Every municipality is allowed to define the tax rate within a range from 0.1% to 1.6% of the real estate appraisal.

Registration Tax

Any act, contract, or other instrument with legal effect that must be registered in an office of public registry, such as the chamber of commerce, triggers registration tax. When a document is subject to registration tax, it will not be subject to stamp tax. Registration tax for corporations and similar business entities is assessed on the subscribed capital of the entity.

The rate is set by departmental assemblies on the initiative of the different departmental governors and is applied to the contractual value of the instrument. The registration tax for acts, contracts, and other juridical transactions subject to registration before an office of public registry is between 0.5% and 1%. Acts, contracts, and other juridical transactions that must be registered before a chamber of commerce are taxed at between 0.3% and 0.7%.

Furthermore, the registration tax is set at a multiple of two to four of the daily minimum salaries for acts, contracts, and other juridical transactions that do not have a contractual value but that are subject to registration before an office of public registry or chamber of commerce. Such documents may include those naming legal representatives or statutory auditors or those presenting statutory reforms that do not require the transfer of rights or increase of capital.

Travel Tax

All individuals-residents and foreigners-travelling out of Colombia must pay a travel tax.

Vehicle Tax

Tax on personal vehicles and motorcycles valued at less than $4 million is levied at a rate of 1%. Tax on vehicles valued between $8 million and $15 million is levied at 1.8%. Tax on vehicles worth more than $25 million is levied at 2.7%.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Mario Andrade, Deloitte & Touche, Santafe de Bogota, Colombia on Tel: +57 1 256 1548, Fax: +57 1 256 1557