FITA helps you find
service providers for:


Business Environment

Business Practices | Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards

Business Practices

General information
Kwintessential
Information on doing business in Colombia
Opening hours and days
Banks are open Monday through Friday from 9am to 4pm in Bogota and 8am to 11:30am and 2pm to 4:30pm in the rest of the country. On the last workday of each month, banks close at noon.
Public administrative offices operate Monday through Friday from 8am to noon and 2pm to 6pm.
Business offices are open Monday through Friday and sometimes on Saturday from 8am to noon and 1pm to 5pm.
Store are open Monday through Saturday from 9am to 7pm.
Shopping malls are open daily from 10am to 7pm.
Some supermarkets are open 24/7
 

Public holidays

New Year January 1
Labor Day May 1
Independence Day July 20
Battle of Boyaca August 7
Immaculate Conception December 8
Christmas December 25
 
Holiday compensation
The celebration of holidays are always postponed until the following Monday when the holiday falls on a week end.
 

Periods when companies usually close

End of year vacation December 24-January 7
 

Return to top

Accounting Rules

Tax year
The fiscal year begins on January 1st and ends on December 31st.
Accounting standards

Standards and accounting services for the nation on the website of the National General Accounting Office

Accounting regulation bodies
National General Accounting Office
Accounting reports
BALANCE SHEET: December 31 n, compared to December 31 n-1
1) Assets
- current assets
- liquid assets
- bad debt allowance
- salaries
- other
- income tax
- inventories
- expenses incurred
- Total current assets
2) equipment, machinery property
- Depreciation
3) Other assets
4) Total assets
INCOME STATEMENT: December 31 n, compared with n-1
1) Revenues
2) Gross profit
3) Operating costs
4) Operating earnings
5) Total operating costs
6) Earnings before income taxes
7) Net income.

 

Publication requirements
The Colombian Commerce Code does not detail the requirements for accounting and the certification of accounts. It is generally found in practice that companies maintain up-to-date ledgers and inventories also annually prepare the documents necessary for a financial analysis (balance sheet, income statement, operational balances, annexes).
Professional accountancy bodies
National Institute of Expert Public Accountants
Certification and auditing
 In Colombia all companies along with the subsidiaries of foreign companies are required to seek a statutory auditor to conduct an annual audit of the financial health of their organization. The auditors must be certified public accountants and must ensure the government the accuracy of the published accounting information. When signing the financial statements they certify that they have been informed of all the required information.
Accounting news
See "News" on the website of the National General Accounting Office

Return to top

Tax Rates

Consumption taxes

Nature of the tax
VAT Value Added Tax
Tax rate
16%
Reduced tax rate
Reduced rates exist for commercial air transport (10%) and food products(7%).
Insurance products are exempt, products related to medical care, the lease-purchase of property  for housing, and lease-purchase financing. Higher rates of 20-25% are applied on wines, spirits and other beverages, as well as pleasure boats and vehicles.
Other consumption taxes

A new tax, applied by the customs service is designated for imports from all countries except for those that have signed trade agreements with Colombia. The taxation is set at 1.2% of the FOB value of the imported products. There are also excise duties levied on cigarettes and certain alcohols.

Return to top

Corporate taxes

Company tax
35%
A 15% rate applies to companies located in  free-trade zone.
Capital gains taxation

Long-term gains are taxed at a rate of 35%.

Other corporate taxes

Return to top

Individual taxes

Tax rate

Income Tax Individuals residing in Colombia are taxed on their worldwide income.
Progressive tax rate of between 0% and 33%.
Allowable deductions and tax credit

Revenues earned from the following activities are not subject to income tax: seismic engineering services for petroleum and gas, new or renovated hotels, software and medical patents, waterway transport, and wind energy.

Special expatriate tax regime

Non-residents are taxed on their income earned from an activity conducted on the national territory. An individual is considered a resident if he has lived in Colombia more than 6 months during the fiscal year.

Return to top

Double taxation treaties

Countries with whom a double taxation treaty have been signed
See the website for taxes
Whithholding taxes
Dividends: 0/20%/33%, Interest: 0, Royalties: 33%

Return to top

Sources of fiscal information

Tax Authorities
Ministry of Finance and Public Credit
Department of Customs
Other domestic resources
Information about taxes in Colombia

Return to top

Intellectual Property

National organizations
The organization with competence in matters of  industrial property is the Superintendencia de Industria y Comercio.
Colombia is a signer of Paris Convention for the Protection of Industrial Property, the Convention that established the World Intellectual Property Organization (WIPO). Colombia has not signed the the Patent Cooperation Treaty (PCT) but it is currently under consideration in Congress. More information can be found on the Proexport website.
Regional organizations

Since January 1994, the regulation of patent rights has become more accommodating since the enforcement of Decision 344 of the Cartagena Agreement. This decision has strengthened the legal protection of patents and trademarks in all the countries of the Andean bloc.

 

National regulation and international agreements

 
Type of property and law Validity International agreements signed
Patent
 

Invention Patent (patente de invención)

20 years
Trademark
 

Law on trademarks

10 years indefinitely renewable.

Trademark law treaty
Nice agreement
Protocol relating to the Madrid Agreement
Copyright
 
http://www.wipo.int/clea/es/text_html.jsp?lang=EN&id=872
WIPO copyright treaty

Return to top

Legal Framework

Independence of justice
The judiciary is not independent and the country's judicial system is slow and plagued by corruption and extortion. However, considerable advances have been made in the promotion of transparency in the implementation of trade legislation.
Equal treatment of nationals and foreigners
From a legal standpoint, foreign nationals can generally expect to be treated similarly to Colombian nationals, although some complaints to the contrary have been filed. For more information please contact your embassy.
The language of justice
Spanish
Recourse to an interpreter
One is always permitted to be accompanied by an interpreter (contact your embassy).
Sources of the law and legal similarities
The main basis of law in Colombia is the 1991 constitution, partly based on Spanish law. It also originated in the judicial review of legislative and executive acts. A new penal code, modeled on procedures in the U.S.A. was declared in 2004 and is being to be implemented gradually.
Checking national laws online
New decrees from the Ministry of the Interior and Justice

Return to top

Standards

National standards organizations
INCOTEC - TecnicaCertification National Institute
Integration in the international standards network
The organization responsible for the choice of standards and standardization of production is the Colombian Institute of Technical Standards (Instituto Colombiano de Normas Técnicas y Certificación ; ICONTEC). This organization is an active member of the ISO and the International Electrotechnical Commission (IEC).
The standards developed by the ICONTEC  are optional. The Government, through the National Council of Standards and Quality, may issue mandatory standards in matters of safety, health and the environment.
Classification of standards
NTC/ISO
Online consultation of standards
To consult the national technical standards visit the ICONTEC website.
Certification organizations
Colombian Institute of Technical Standards

Return to top

Any comments about this content? Report it to us.

 

© Export Entreprises SA, all rights reserved.
Last updates: October 2009