NEW NOMINAL INCOME TAX RATES FOR INDIVIDUALS
New income tax rates for individuals depend on the category of income they receive: labor and pension income, non-labor income and income from dividends and shares
For the category of labor and pensions income, 4 progressive rates were implemented which range from 0% to 33%, as well as 4 withholding tax rates, from 0% to 33%.
Rates for individuals in the labor and pension income category:
Withholding tax rates for the labor and pension income category:
It should be mentioned that the non-labor income category is taxed with a progressive rate that goes up to 35%.
In the category of dividends, when dividends are distributed out of profits that were not taxed at the corporate level, they will be subject to withholding at a rate of 35%. The net dividend after subtracting this tax will be taxed again at a progressive rate from 0% to 10%.
Dividends out of profit that were taxed at a corporate level received by individuals’ tax residents in Colombia will be subject to withholding at a rate of up to 10%.
This regime is regulated in articles 5, 6 and 7 of Law 1819 of 2016.