{"id":7664,"date":"2023-07-13T13:21:18","date_gmt":"2023-07-13T13:21:18","guid":{"rendered":"https:\/\/taxupdate.com.br\/colombia-tax-treatment-on-dividends-and-participation-distributions\/"},"modified":"2023-11-29T12:40:27","modified_gmt":"2023-11-29T12:40:27","slug":"colombia-tax-treatment-on-dividends-and-participation-distributions","status":"publish","type":"post","link":"https:\/\/taxupdate.com.br\/es\/colombia-tax-treatment-on-dividends-and-participation-distributions\/","title":{"rendered":"<strong>COLOMBIA: TAX TREATMENT ON DIVIDENDS AND PARTICIPATION DISTRIBUTIONS<\/strong>"},"content":{"rendered":"\n<p>On July 11th, the official publication of Decree No. 1103 brought significant amendments to Decree No. 1625 &#8211; Single Tax Regulations. These changes impact the tax treatment of dividends and participations distributions for resident and foreign individuals, entities, and undivided estates starting from January 1st, 2023.<\/p>\n\n\n\n<p><strong>Key Aspects:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Distributions to Resident and Foreign Individuals, Entities, and Undivided Estates:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Subject to the general Income Tax rate of 35% (or 9% &#8211; 15% &#8211; 38% &#8211; 40% &#8211; plus applicable additionals), unless considered non-taxable or occasional income.<\/li>\n\n\n\n<li>Mega investment projects meeting article 235-3 requirements and signing a tax stability contract until 12\/31\/2022 are subject to a 27% rate during the contract term, meeting specified regime conditions for each taxable year.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Distributions to Non-Residents:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Subject to a special 20% withholding rate (article 245 of the Tax Code), unless considered non-taxable or occasional income.<\/li>\n\n\n\n<li>Mega investment projects meeting article 235-3 requirements and signing a tax stability contract until 12\/31\/2022 are subject to a 27% rate during the contract term, meeting specified regime conditions for each taxable year.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Distributions to Residents:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Income Tax Withholding calculated on the gross dividend amount, with a 0% &#8211; 15% applicable withholding rate. Exceptions apply for mega-investments.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Distributions to Domestic Entities:<\/strong>\n<ul class=\"wp-block-list\">\n<li>A 10% special Income Tax withholding rate (article 242-1 of the Tax Code) applies for non-taxable or non-occasional income, included in the general Income Tax base.<\/li>\n\n\n\n<li>Not applicable when distributions are made to specific recipients, such as non-taxpayer entities, registered economic groups, or controlled entities.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Taxable Profits:<\/strong>\n<ul class=\"wp-block-list\">\n<li>For distributions related to taxable profits, general withholding rates of article 240 of the Tax Code apply.<\/li>\n\n\n\n<li>Mega investment projects&#8217; distributions have an applicable withholding rate of 27%.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>On July 11th, the official publication of Decree No. 1103 brought significant amendments to Decree No. 1625 &#8211; Single Tax Regulations. These changes impact the tax treatment of dividends and participations distributions for resident and foreign individuals, entities, and undivided estates starting from January 1st, 2023. Key Aspects:<\/p>\n","protected":false},"author":13,"featured_media":7665,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[454,456],"tags":[457,465,466,458,467,468,469,459],"class_list":["post-7664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artigos-es","category-latam-es","tag-colombia-es","tag-colombia-2-es","tag-latam-es","tag-tax-es","tag-tax-2-es","tag-taxcompliance-2-es","tag-taxregulations-es","tag-taxupdate-es"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>COLOMBIA: TAX TREATMENT ON DIVIDENDS AND PARTICIPATION DISTRIBUTIONS - TaxUpdate - Especialistas em Tax Compliance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxupdate.com.br\/es\/colombia-tax-treatment-on-dividends-and-participation-distributions\/\" \/>\n<meta property=\"og:locale\" content=\"es_ES\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"COLOMBIA: TAX TREATMENT ON DIVIDENDS AND PARTICIPATION DISTRIBUTIONS - TaxUpdate - Especialistas em Tax Compliance\" \/>\n<meta property=\"og:description\" content=\"On July 11th, the official publication of Decree No. 1103 brought significant amendments to Decree No. 1625 &#8211; Single Tax Regulations. 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