Contributed By Baker McKenzie S.A.S.
Entities approved by the Colombian Tax Office as eligible for the special tax regime are subject to income tax at a 20% rate. However, any income surplus is considered as exempt, provided that the funds are destined directly or indirectly for programmes that develop the entity's social purpose and meritorious activities. Any excess benefits or surplus that are not reinvested in programmes that develop the entity's social purpose are deemed as taxable for the next fiscal year.
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