Friday June 13, 2025
  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast
Versión Español
PanAm Post
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
PanAm Post
No Result
View All Result

Home » Colombian Businesses the Most Taxed in Latin America

Colombian Businesses the Most Taxed in Latin America

Julián Villabona Galarza by Julián Villabona Galarza
July 19, 2016
in Colombia, Economics, Featured, News Brief, NL Daily, Politics, South America
FacebookTwitterTelegramWhatsapp
In Colombia, companies must pay approximately 40% as income tax (YouTube)
In Colombia, businesses must pay approximately 40 percent in income tax. (YouTube)

EspañolColombia has passed a new tax reform, scheduled for the second semester of this year.

Minister of the Treasury Mauricio Cardenas backed the reform, which could bring much higher income taxes on certain companies.

  • Read more: Inflation in Colombia Hits 16-Year High of 8.6 Percent
  • Read more: Colombian President: Taxes Will Rise if FARC Deal Fails

Baker & Mackenzie, a law firm specializing in taxes, did a comparative study of seven countries in Latin America, finding that Colombia has the highest taxes — beating out Argentina, Brazil, Chile, Mexico, Peru and Venezuela.

The study reached this conclusion after determining that adding traditional income tax plus two additional taxes would add up to 40 percent of a company’s taxable income. These two taxes make up the special Contribution for Equity (Cree), a tax collected specifically for an alleged reduction to inequality.

This 40 percent is made up of the following: 25 percent for traditional income tax, nine percent for Cree, and six percent for Cree implemented in a 2014 tax reform.

According to the previous tax reform, it’s expected that the 2017 income tax will come to 42 percent in Colombia, reaching 43 percent by 2018.

If Colombia heeds the recommendations made by an expert commission, those taxes should drop. The experts that helped draw up the tax reform said high income taxes are contrary to world trends. It would also affect the competitiveness of Colombian companies.

According to Baker and McKenzie, the country after Colombia is Argentina, with a 35-percent income tax. Right after comes Venezuela with 34 percent, Mexico with 30 percent, Peru with 28 percent, Chile with 24 percent and finally, Brazil with 15 percent.

RelatedArticles

CNN Fake News: The Network’s Efforts to Justify Its Actions May Be Worse than Its Actual Flawed Reporting

CNN’s audience in 2024 was the lowest in its history

December 21, 2024
The silence of the Democrats will be the main course on Thanksgiving

The silence of the Democrats will be the main course on Thanksgiving

November 28, 2024

In Chile, taxes became more complicated after the last tax reform. There is a one-first rate known as the First Category General Rate, that will rise every year. There is a second one, known as the Second Category General Rate that has a progressive rate. There is another global complementary tax.

In Argentina, where income tax comes to 35 percent, there’s a similar retention rate for dividends. Brazil also has a social contribution to net profit which falls on corporate rent.

Source: El Tiempo

Tags: income tax in Colombia
Julián Villabona Galarza

Julián Villabona Galarza

Julián is a reporter with the PanAm Post with studies in Politics and International Relations from the University Sergio Arboleda in Colombia. Follow him: @julianvillabona.

Related Posts

CNN Fake News: The Network’s Efforts to Justify Its Actions May Be Worse than Its Actual Flawed Reporting
Ideology

CNN’s audience in 2024 was the lowest in its history

December 21, 2024
The silence of the Democrats will be the main course on Thanksgiving
Culture

The silence of the Democrats will be the main course on Thanksgiving

November 28, 2024
These are the 21 individuals sanctioned by the U.S. for fraud and repression in Venezuela
Elections

These are the 21 individuals sanctioned by the U.S. for fraud and repression in Venezuela

November 27, 2024
Yamandú Orsi, from the leftist Frente Amplio, wins the Presidency of Uruguay
Elections

Yamandú Orsi, from the leftist Frente Amplio, wins the Presidency of Uruguay

November 24, 2024
Can Socialism Compete “On Equal Terms” in the Field of Ideas?
Argentina

Can Socialism Compete “On Equal Terms” in the Field of Ideas?

November 20, 2024
"The people must come to an agreement," said Colombian President Gustavo Petro regarding the outcome of the elections in Venezuela, ignoring the fact that Venezuelans had already expressed themselves at the polls. (File photo)
Colombia

Petro Calls Venezuelan Elections a “Mistake”: What Lies Ahead for Colombia?

November 19, 2024
Next Post
minister of happiness

The Minister of Happiness Is All That's Wrong in Latin American Politics

Subscribe free and never miss another breaking story

  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast

© 2024 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact

© 2024 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Privacy and Cookie Policy.