Payer | Receptor | Dividend quality | Withholding tax rate | Comments |
National Society | Natural Person or Unliquidated Succession resident in Colombia | INCRNGO | - 0% (de 0-1.090 UVT’s)
- 15% (>1.090 UVT´s)
| - This withholding may only be imputed by the resident individual.
- A 19% tax discount will apply when the dividend exceeds 1,090 UVTs.
- The transition rule is maintained with respect to dividends from profits generated in 2016 and prior years.
|
National Society | Natural person or non-resident unliquidated succession or foreign companies and entities not domiciled in Colombia. | INCRGO | 20% | - The withholding shall be attributable to the resident individual or to the investor residing abroad.
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National Society | National Society | INCRNGO | 10% | - It is payable only on the first distribution and is transferable to the ultimate beneficial shareholder.
- It is not incurred in corporate groups and companies in a situation of registered control. It is also not applicable in CHC.
|
National Society | Permanent establishment of a foreign company. | INCRNGO | 20% | - The issue of how a PE can be a shareholder of a company is questionable.
- It does not apply to PEs of individuals or other types of entities.
|
Foreign Company | National Company or Entity | Taxable Income | N/A | - The dividend will be taxed at a rate of 35% (Art. 240 ET).
|
National Society | National entity of a non-corporate nature | Income taxed according to the recipient's qualifications. | N/A | - There is a gap in the current legislation.
- It will be subject to the tax applicable in the corresponding tax regime.
|
National Society | Company or Entity covered by a first-generation ICD | N/A | - 5% of the gross amount of dividends 0% if the beneficial owner ("BE") is a company that owns directly or indirectly at least 20% of the capital of the company.
| - Reference is made here to the case of the Colombia/Spain DTA.
- For this to apply, the BE of the dividends must be a Spanish tax resident.
- In application of the protocol, the withholding tax on dividends from taxable profits of the partner can be reduced to zero, if they are invested in the same productive activity for a term of 3 years.
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National Society | Company or Entity covered by a first-generation ICD | N/A | - 5% of the gross amount if the BE is a company (other than a partnership) that directly owns at least 20% of the capital of the company paying the dividends.
- 5% if it is a recognized pension fund.
- 15% in other cases.
| - Reference is made here to the Colombia/Italy DTA.
- These rules apply only if the BE is a resident of a contracting state.
- It does not apply to dividends paid out of profits that have not been subject to tax (these will be subject to 15% withholding tax).
|
National Society | Company or Entity domiciled in a CAN country | N/A | 20% | - It is only taxed at the source (the withholding will end up being the tax). The income in the country of residence will be understood as "exempt income".
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