Colombia Implements New Tax Regulations for Digital Services and Economic Presence

• Decree No. 2039/2023 regulates taxation of digital services and entities with substantial economic presence in Colombia
• Effective January 1, 2024, nonresidents without domicile in Colombia will face a 3 percent tax rate on gross income from the sale of goods and digital services
• Withholding will occur unless an exemption is approved
• The decree provides clarity on definitions, rules for digital services benefiting users in Colombia, and obligations of nonresident taxpayers with significant economic presence
• The regulations take effect immediately.

Source:

• globalvatcompliance.com
• EY

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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