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Tax law in Medellín, Colombia like in the rest of the country, is based on the fiscal principles set forth in the nation's Constitution. The primary legislation for taxation is the Colombian Tax Code, which covers both direct and indirect taxes. Taxpayers in Medellín include individuals, corporations, and other entities, and they are liable for income tax, value-added tax (VAT), and other types of local taxes depending on their financial activities.
Understanding Colombian tax regulations can be complex due to their numerous nuances and frequent updates. Matters related to personal income tax, corporation tax, tax disputes, tax planning, and other tax-related transactions require professional competency. Whether you're a local entrepreneur, an international business, or a private individual, conflicts can arise with tax authorities. In these cases, having a tax lawyer to help navigate these complex waters is a wise decision.
In Medellín, apart from the standard national taxes, local taxes such as the Industry and Commerce Tax (ICA) and property tax are also applicable. ICA is levied on any commercial, industrial, or service activity carried out in the city, while the property tax is applied to properties within the territory. Furthermore, there are frequent revisions and modifications in tax laws. An understanding of these intricacies requires professional legal advice.
It varies depending on the income brackets which range from 0% to up to 39%. It's calculated on a progressive scale.
Non-residents are liable for taxed income sourced in Colombia unless explicitly exempt in an applicable double tax treaty.
The standard VAT rate in Colombia is 19%, with some exceptions provided for certain goods and services.
Besides income tax and VAT, a small business owner should also account for the Industry and Commerce Tax (ICA) and other local taxes.
Yes, Colombia has signed Double Taxation Agreements with several countries to avoid its residents from being taxed twice on the same income.
For more information, you can consult the National Directorate of Taxes and Customs (DIAN), the entity in charge of tax administration in Colombia. The Chamber of Commerce of Medellín for Antioquia offers advice and resources for businesses. Moreover, legal information portals such as AbogadosYa and LegisComex provide updates and commentary on Colombian tax rules.
If you need legal assistance with tax issues in Medellín, Colombia, it's advisable to hire a tax lawyer who understands both local and national laws. They can advise you on how the laws apply to your situation, help prepare and file your taxes, represent you in disputes with tax authorities, and provide guidance on tax planning strategies. Consult with a local legal directory or legal service portal to find a tax lawyer that suits your needs.
