You are liable for tax in Colombia if you have been in Colombia for more than 183 days in the last 360 calendar days.
Example: You are in Colombia for 20 days in August 2020, then the months of October, November and December 2020 and thus 110 calendar days. Then also in the months of February, March and April 2021 for more than 73 calendar days. In this example, you will be taxable in 2021 because you have been in Colombia for more than 183 days in the last 360 days.
Regardless of whether you are still taxable in your home country (e.g. USA), you will automatically be taxable in Colombia with your worldwide income according to the above rule.
There are countries with a double taxation treaty and others without one. If there is no double taxation treaty (e.g. USA), taxes paid in another country are deductible from taxes in Colombia. If you have a double taxation treaty, you are only fully taxable in one country. In this case, it is important to deregister for tax purposes in your home country.
Example (no double taxation treaty): You pay US $ 6,000 income tax. According to the tax return in Colombia, you would have to pay 6,800 USD based on your worldwide income. In this case you can deduct the 6’000 USD from the 6’800 USD and effectively pay only 800 USD in Colombia.
Many retirees believe that a pension is not taxable. This is only correct insofar as it is a Colombian pension. A foreign pension or pension is taxable in Colombia.
In contrast to many other countries, taxpayers have to apply for their tax number at the DIAN (tax authority) themselves and are the responsibility of every taxpayer.
Every year, the tax authorities determine by when the tax return must be submitted. In the case of late submission, a penalty is due, as well as interest on arrears on the outstanding tax.
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