Colombia Proposes Unified 1.5% Withholding Tax for All Electronic Payments and Card Transactions

• Colombia’s Ministry of Finance consulted on a draft decree to unify the withholding tax rate for electronic payments and card payments at 1.5%.
• The measure aims to ensure equal tax treatment for all non-cash payment channels.
• Withholding tax would serve as an advance payment, creditable in the taxpayer’s income tax return.
• Payments not constituting taxable income or made to non-VAT-liable individuals would be exempt.
• The decree also facilitates information sharing for tax verification and prioritizes aggregators and acquiring entities as withholding agents.

Source: regfollower.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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