How corporate tax works in Colombia
Colombian companies and permanent establishments generally calculate corporate income tax on taxable profits after permitted costs, deductions, exempt income and tax credits. Foreign companies without residence are generally taxed on Colombian-source income.
The standard corporate income-tax rate is 35%. Qualifying financial institutions and related entities with at least 120,000 UVT of taxable income pay five additional points in the 2023–2027 period, making the 2026 rate 40%.
Free-zone users, the extractive sector, special economic regimes, related-party payments, transfer pricing and the global minimum-tax rules can change the effective result. Distributions to shareholders are a separate layer.
Tax rates at a glance
- General corporate income tax
- 35%Standard
- Financial-sector surcharge
- +5 points
- Qualifying financial-sector total
- 40%
- Industrial free-zone export income
- 20% on qualifying portion
- VAT
- 19%
- Global minimum tax
- 15% floor for in-scope groups
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Local operating companiesRegional businessesExportersFounders with substanceMultinational groups
Watch out for
- A 35% rate is applied to taxable profit, not simply gross revenue. Book accounts, tax adjustments, deductible costs, withholding and local obligations need to reconcile.
- The 40% financial-sector figure is a surcharge-based 2026 rule, not the ordinary rate for every company. Extractive-sector surcharges can also vary with commodity-price tests.
- Colombia's free-zone rules are conditional. Export and non-export income can be split, and the commercial activity, agreement and qualifying investment need to be checked.
- Companies can face VAT, payroll and parafiscal contributions, municipal industry-and-commerce tax, withholding, transfer pricing and a separate dividend layer.
Frequently asked questions
What is the corporate tax rate in Colombia?
The general corporate income-tax rate is 35%. Certain qualifying financial-sector taxpayers pay 40% in 2026 because of a five-point surcharge.
Does Colombia tax foreign companies?
Yes, generally on Colombian-source income and profits attributable to a Colombian permanent establishment. Treaties and special regimes can limit or modify the result.
Are Colombian companies taxed on worldwide profits?
Colombian resident companies are generally within the resident-company income-tax rules, while foreign companies without residence are generally taxed on Colombian-source income. The exact source and permanent-establishment analysis matters.