www.doingbusinessincolombia.com
EMAIL info@doingbusinessincolombia.com
TEL +57-305-461-9162
The following are considered when doing business in Colombia foreign source income:
Credits obtained abroad.
Income derived from technical services of repair and maintenance of equipment provided abroad.
Income obtained from the sale of foreign goods owned by foreign companies or individuals without residence in the country, which have been introduced from abroad to international logistics distribution centers located in authorized seaports by the DIAN. (Article 25 of the ET)
What is meant by permanent establishment when doing business in Colombia?
A permanent establishment is understood as a fixed place of business located in the country, through which any foreign company or natural person without residence in Colombia conducts all or part of their activity.
It will also be considered that a permanent establishment exists in the country when a person, other than an independent agent, acts on behalf of a foreign company and habitually exercises powers in the national territory that enable them to conclude acts or contracts that are binding for the company. It will be considered that this foreign company has a permanent establishment in the country regarding the activities conducted by that person for the foreign company unless such person’s activities are exclusively of an auxiliary or preparatory nature. (Article 20-1 of the ET)
Income tax return for natural persons without residence in Colombia.
Natural persons without residence in Colombia and foreign companies and entities that, in accordance with Article 20-1 of the Tax Statute, do not have a permanent establishment or branch in the country, are taxpayers of income tax and complementary tax regarding their national source income and occasional gains. (Article 4 of Decree 3026 of 2013)
For tax residents, is both national and foreign gross assets included in the income tax return?
Yes, for taxpayers with residence or domicile in Colombia, except for branches of foreign companies in Colombia, the gross assets include assets owned abroad. (Articles 9 and 261 of the tax code
If you have questions, please contact us for further information.
www.doingbusinessincolombia.com
EMAIL info@doingbusinessincolombia.com
TEL +57-305-461-9162
