Colombian Government Implements 3% SEP / DST on Non-Resident Digital Service Providers

• Colombian government imposes a SEP / DST on non-residents from 1 January 2024
• Non-resident providers of certain digital services will be liable to 3% income tax from 1 January 2024
• The original proposal was for a 5% tax on gross income from digital services
• The SEP / DST can be charged via 5% corporate income tax or 10% withholding tax
• It is part of a two-part significant economic presence income tax test
• The tax may also be applied on e-commerce goods.

Source: vatcalc.com

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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