1. Notes on who is a tax resident in Colombia: It is important to note that if you are a tax resident and you file taxes it does not necessarily mean that you will owe taxes on your tax return. In the United States tax returns have very clear tax brackets. In Colombia the net income tax is at 33%, however by the time this tax rate is applied it may drop to 20%. If you already paid taxes on your income in another country then you may or may not have to pay in Colombia. Foreigners living in Colombia should also realize that a residency visa does not mean you have to pay taxes. Even a tourist could be required to pay taxes if they pass 183 days in any 12 month period. Stay under 183 days in any 12 month period and you will not have to pay taxes here, unless your married and your wife or child is living here more than 183 days in a year.

  2. My fellow expat friends and clients, a big tax reform is being debated in the Colombian congress at this moment. By the end of December 2016 Colombia will pass a tax reform. One of the flash points being debated is to whether or not the sales taxes will go up from 16% to 19%. Corporations must charge sales tax on goods and services. Food will not have a sales tax. Colombia has lost a lot of tax revenue from taxes on oil exports and is seeking to recuperate these loses. We will post the new tax law as soon as it comes out.

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