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Corporate Income Tax for Legal Entities in Colombia – A Clear Overview -…

- - - - Ordinary regime companies (the most common)Everyday commercial companies such as SAS, Limited Liability Companies (Ltda.), Corporations (S.A.), limited partnerships, and similar entities.
        
        Standard rate: 35% on taxable profits.
        
        Financial institutions (banks, insurers, brokers, etc.) generally face a 5-percentage-point surcharge (total 40%) when taxable income reaches the relevant UVT threshold (approximately 120,000 UVT). Temporary or emergency measures can affect the surcharge in specific years.
        
        Certain extractive (oil, coal) and hydroelectric activities face additional surcharges that can raise the effective rate further, subject to price and income thresholds.
        
        They must file Form 110 and reconcile accounting vs. tax differences.
      - Special Tax Regime (Régimen Tributario Especial – RTE)Foundations, non-profit corporations, cooperatives, mutual funds, trade associations, and similar entities that meet DIAN requirements.
        
        Rate: 20%, applied only on the “excedente” (net surplus/benefit) that is not reinvested in their social purpose.
        
        Proper full reinvestment can result in an effective tax of zero.
        
        They file under special rules on Form 110.
      - Free Trade Zone (Zona Franca) usersIndustrial users that meet the applicable conditions usually enjoy a reduced 20% rate on the portion of income related to exports. Income from sales into the national customs territory is generally taxed at the ordinary 35% rate (with some exceptions for specific categories of users or zones). Commercial users typically pay the general rate.
      - Other reduced rates for specific activities
        
        New or renovated hotels, ecotourism, and agrotourism projects → 15% (for a limited period and under strict conditions).
        
        Publishing companies whose exclusive activity is editing books → 15%.
        
        Certain state industrial and commercial enterprises that operate lottery or liquor monopolies (with >90% state ownership) → 9%.
      - Non-taxpayers (“no contribuyentes”)Some public entities (the Nation, territorial entities, certain autonomous corporations, the Red Cross, etc.) and a short list of other organizations (recognized churches, political parties, labor unions under specific rules, etc.) are not subject to the tax. They may still have information-return obligations in some cases.
      - Foreign companies
        
        Without a permanent establishment in Colombia → taxed only on Colombian-source income (often via withholding).
        
        With a permanent establishment or branch → taxed like a local company on the income attributable to that establishment (generally at 35%).
      - Simple Tax Regime (Régimen Simple de Tributación – optional for smaller entities)Certain small and medium-sized companies (income below roughly 80,000 UVT in the prior year, and meeting other conditions) can opt into a simplified regime. It replaces income tax, ICA, and some other obligations with a single tax calculated on gross income at progressive rates (generally between about 1.8% and 14.5%). Availability is restricted.