How dividend tax works in Colombia
Colombia has a two-layer dividend system. The company first pays income tax on its profits, and a further dividend or withholding rule can apply when profits are distributed to an individual, company or foreign investor.
For resident individuals, the dividend withholding table is 0% on the first 1,090 UVT of dividends paid or made payable during the year and 15% on the excess. The annual return and the distinction between taxed and untaxed company profits still matter.
Dividends paid to non-resident individuals and foreign companies are generally subject to a 20% rate for distributions from profits already taxed at company level. Distributions of profits not taxed at the company level can instead bring the 35% corporate layer, followed by the relevant shareholder charge.
Tax rates at a glance
- Resident individuals up to 1,090 UVT
- 0%Withholding table
- Resident individuals above 1,090 UVT
- 15%
- Colombian recipient company
- 10% withholding
- Non-resident shareholder
- 20%
- Untaxed company profits
- 35% company layer plus shareholder rules
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersCompany shareholdersHolding companiesForeign investorsFamily businesses
Watch out for
- The 1,090 UVT threshold applies to the resident-individual withholding table for dividends paid or made payable in the period; it is not a blanket annual exemption from every tax layer.
- Always separate profits that were taxed at the company level from profits that were not. The latter can trigger the corporate rate before the shareholder-level dividend charge.
- Treaties, the Colombia–CAN rules, a Colombian holding-company regime and beneficial ownership can change withholding. Treaty relief normally requires documentation and a fact-specific analysis.
- Dividend withholding is generally credited or reconciled through the recipient's tax return where applicable. A withholding certificate and the company's profit-tax history should be retained.
Frequently asked questions
What is the dividend tax rate in Colombia?
Resident individuals generally face 0% withholding on the first 1,090 UVT and 15% on the excess. Many non-resident shareholders face 20% on dividends from profits already taxed at company level.
Are dividends taxed twice in Colombia?
They can be taxed at company level and again on distribution, but the shareholder result depends on whether the profits were already taxed, the recipient and any treaty or special regime.
Does Colombia tax dividends paid abroad?
Yes, generally through withholding. The domestic rate is commonly 20% for non-resident recipients of profits taxed at company level, subject to treaties and special rules.