Ensuring payment of taxes from the tax reform is key to ensuring that your business is up to date with current regulations and operates without setbacks. This applies if you are taking your first steps as an entrepreneur and also when you have an established company.
Therefore, knowing the tax rules and your responsibilities as a taxpayer will help you comply with accounting and legal requirements. In addition, it is an opportunity to optimize your financial management and make informed decisions that support the operation of your company.
In this article, you will learn some aspects of the 2024 tax reform for individuals and legal entities. You will also be able to anticipate the impact that these changes will have on the fiscal number data and financial outlook of your business.
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What is tax reform?
Tax reform in Colombia is a set of adjustments made to the laws of the country's tax system. These changes may include the modification or elimination of taxes, reforms in rates and deductions, as well as the implementation of regulations to improve tax collection.
Law 2277 of 2022 was sanctioned on December 13 by the President of the Republic, Gustavo Petro. The objective of the law is to promote investment and economic growth in the country.
This latest tax reform in Colombia, known as the Petro tax reform, is focused on promoting equality and social justice, through some improvements in the distribution of the tax burden.
New taxes of the tax reform
Among the tax measures approved by the reform, the following taxes are contemplated for natural persons in Colombia:
Tax reform for individuals
The tax reform for individuals in Colombia includes significant changes. One of them is that, due to the reduction of the thresholds for deductions and exemptions, those who report income of more than 10 million pesos per month will pay more taxes.
Additionally, dividends will be subject to a rate of 0 to 15% for individuals and 20% for foreign entities or non-resident individuals. Occasional gains, such as inheritances and the sale of real estate, will be subject to a rate of 15%.