Accounting & Tax in Colombia
Stay current on DIAN's income tax, IVA, and exógena reporting requirements year-round, so your Colombian entity never falls out of good standing.
Annual Return Window
April-October (by NIT digit)
Tax ID
NIT
Primary Registry
DIAN
Accounting & Tax in Colombia: What You Need to Know
Colombian corporations pay a 35% general corporate income tax rate, with the annual return and installment payments staggered across the year by the last digit of the entity's NIT, running from roughly April through October for most regular taxpayers. IVA is 19% standard (5% on select goods and services), filed bimonthly or four-monthly depending on prior-year revenue, and electronic invoicing is mandatory for every VAT-responsible entity, requiring DIAN registration and a digital signature. Financial statements follow NIIF (Colombia's IFRS adoption), which must then be reconciled to the separate tax basis under the Estatuto Tributario, with supporting books and documents kept in Spanish and retained for at least 10 years. Related-party transactions with a foreign parent trigger transfer pricing obligations once gross-income or net-worth thresholds are met, with an informative return plus Local File and Master File above additional thresholds. Beyond DIAN, a foreign-owned subsidiary also owes municipal ICA tax wherever it operates and must keep its beneficial-ownership registration (RUB) current.
Key Requirements
35% general corporate income tax rate, with the annual return and installment payments staggered across the year by the last digit of the entity's NIT
19% standard IVA (5% on select goods and services), filed bimonthly or four-monthly depending on prior-year revenue, with mandatory electronic invoicing for every VAT-responsible entity
Financial statements prepared under NIIF (Colombia's IFRS adoption), then reconciled to the separate tax basis required by the Estatuto Tributario
Accounting books and supporting documents kept in Spanish and retained for at least 10 years
Información exógena (detailed third-party reporting on payments, sales, payroll, and withholding) required annually once gross income exceeds the applicable threshold, staggered by NIT
Transfer pricing documentation, an informative return plus Local File and Master File above applicable thresholds, required for related-party transactions with the foreign parent
Common Challenges
Información exógena is a heavier lift than most foreign parents expect
This annual, highly granular report covers nearly every supplier payment, sale, payroll item, and withholding above minor thresholds. Foreign parents used to lighter home-country reporting regimes routinely underestimate the work this takes.
Beneficial-ownership obligations can attach to the foreign parent itself
The RUB registry requirement is commonly assumed to apply only to the Colombian entity, but the foreign parent may need to register directly if the investment structure isn't already covered by a reporting local vehicle. This is frequently missed by inbound investors.
ICA is municipal, not national, and must be filed separately in every city of operation
Industria y Comercio tax is administered by each municipality, not DIAN, with its own rates and filing procedures. A subsidiary operating in multiple cities must register and file separately in each one.
How NavviPal Helps
Monthly, bimonthly, and annual DIAN filings (income tax, IVA, información exógena) handled on their staggered NIT-based deadlines
NIIF financial statements prepared and reconciled to the Estatuto Tributario tax basis for annual filing
RUB beneficial-ownership registration kept current for both the local entity and, where applicable, the foreign parent
Transfer pricing documentation for related-party transactions with the foreign parent, plus ICA registration and filing in every municipality where the entity operates
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