JULY 2016

Tax amnesty in Colombia: as of 2017, repatriation tax for foreign assets will be 13%

Colombia has established a fiscal amnesty for foreign assets that have not been declared on local tax filings, as well as for non-existent liabilities (liabilities declared for the sole purpose of decreasing tax burden).

Therefore, as articles 35-39 of Law 1739 of 2014 estate, Colombian tax residents have a two-year period (until 2017) to rectify their status quo.

This tax requirement levies a complementary normalization tax for foreign assets at a gradual rate: 11.5% for declarations done during 2016 and 13% for those who rectify their status in 2017.

The Colombian government does not accept amnesty claims for the following cases:

  • The Colombian resident is currently being investigated by Colombian tax authorities.
  • Assets come from illegal activities

Finally, once declared, assets will become part of the tax payers' estate, for tax purposes.