Colombia Tax Reform Legislation Includes Increased Dividend Tax, a New Wealth Tax, Rules for Taxing a Significant Economic Presence, and Other Changes

Colombia's Ministry of Finance has announced the submission of tax reform legislation in the House of Representatives on 8 August 2022. Some of the main proposed reform measures are summarized as follows:

• The 35% corporate income tax rate is maintained indefinitely, along with the additional 3% surtax on financial institutions;
• The withholding tax rate on dividends paid to non-resident legal entities and natural persons is increased from 10% to 20%;
• The tax rate on occasional gains/earnings…