Figures verified 7 October 2026 · Applies to: 2026 rules
Incorporating a Colombian company is the easy part. The SAS can be set up in days. What follows is a compliance calendar that runs every month: invoices, withholding, VAT, payroll and annual filings, each with its own form and deadline. For a foreign owner who does not read Spanish or know the DIAN’s systems, the accountant is the person who keeps the company out of trouble. Here is what that job involves, and what to expect from whoever does it.
Monthly and bimonthly obligations
| Obligation | What it involves |
|---|---|
| Electronic invoicing | Every sale is invoiced electronically through the DIAN system (Resolution 000165 of 2023, as amended by 000227 of 2025). Simple point-of-sale receipts are limited to 5 UVT (COP 261,870). Purchases from suppliers who do not invoice need a documento soporte. |
| Withholding tax (retención en la fuente) | The company withholds tax on many payments it makes and files a monthly return. Typical rates: purchases 2.5%, services 4%, fees to a company 11%, rent of real property 3.5%. Payments abroad generally carry 15% or 20%. |
| VAT (IVA) | 19% general rate, 5% reduced. Filed bimonthly by large taxpayers and companies with gross income of 92,000 UVT or more, and every four months below that. Colombia has no quarterly VAT period. |
| Payroll | Electronic payroll (nómina electrónica) is reported within the first 10 days of the following month, along with social security and payroll contributions. |
| ICA | Municipal industry-and-commerce tax. Rates and filing frequency depend on the city. In Bogotá, rates run from 4.14 to 13.8 per thousand. |
Payroll costs
If you hire in Colombia, budget for contributions on top of salary: health 12.5% (8.5% employer, 4% employee), pension 16% (12% and 4%), occupational risk insurance (0.522% to 6.960% depending on risk class), plus SENA 2%, ICBF 3% and the family compensation fund 4%. Under Art. 114-1 ET, employers can be exonerated from the 8.5% employer health contribution, SENA and ICBF for workers earning under 10 minimum wages. That brings its own special self-withholding obligation, and the family compensation fund contribution is never exonerated. Severance (cesantías), interest on severance, the service bonus (prima) and vacations come on top.
The 2026 minimum wage is COP 1,750,905 a month, plus a transport allowance of COP 249,095. That is a 23% increase on 2025, so update any budget prepared last year.
Annual obligations
- Corporate income tax return (Formulario 110) at 35%, with a 15% minimum tax floor on financial profit.
- Chamber of Commerce renewal of the commercial registration.
- Beneficial ownership reporting to the DIAN’s registry, kept current when owners change.
- Foreign investment records kept in line with the registered capital. See registering foreign investment.
- Transfer pricing if the company deals with related parties abroad and has gross assets above 100,000 UVT or income above 61,000 UVT.
- Financial statements and, depending on size, a statutory auditor (revisor fiscal).
Things foreign owners often miss
- The simplified regime is generally off the table. The Régimen Simple is generally not available where a non-resident is involved, so plan on the ordinary regime.
- Dividends cost more than expected. Distributions to non-residents carry 20% withholding on top of corporate tax, an effective 48%. See dividend tax for foreign shareholders.
- Paying yourself or your foreign parent. Management fees, royalties and loans to related parties abroad carry withholding and transfer-pricing considerations.
- The rules have been moving. Between December 2025 and September 2026 Colombia saw a rejected tax reform, two economic emergencies, struck-down decrees and a reinstated withholding regulation. Your accountant should tell you when something changes, not after.
What to ask any accountant you are considering
- Will you communicate with me in English, in writing?
- Will I get a compliance calendar showing every filing and its deadline?
- Will I receive monthly or periodic reports I can actually read?
- Do you handle foreign investment registration and dividend withholding, or only domestic tax?
- If I am a US owner, do you coordinate with my US preparer on Form 5471 and related filings?
- What is included in your fee, and what is billed extra?
Where we fit
The Colombian Accountant works with foreign investors and foreign-owned companies, in English. We form companies (SAS from USD 500 in professional fees) and handle the compliance that follows. See our pricing, or read SAS vs. branch if you are still choosing a structure.
Talk to us
The Colombian Accountant helps foreign investors and residents with Colombian tax returns, company formation and ongoing compliance, in English. Get your fixed quote.
This article is general information, not tax or legal advice. Colombian tax law changed materially between December 2025 and September 2026, and some rules described here are subject to pending legislation or litigation. Confirm your situation with a professional before acting.