Taxation of international executives
For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.
Are there special residency considerations for short-term assignments?
There are no special considerations regarding short-term assignments in Colombia.
Are there special payroll considerations for short-term assignments?
When payments are received abroad for services rendered in Colombia, the obligation to report and withhold will arise for the Colombian entity, regardless the payment is not made through Colombian payroll, if such cost is recharged by the foreign entity to the Colombian entity. It is important to mention that this liabilities are not for the foreign entity as this entity is not considered as a Colombian withholding agent. Under normal conditions, the Colombian entity should instruct the foreign entity to pay the net amount, extracting from the payment the equivalent to the withholding, which should be paid in Colombia by the Colombian entity.
What income will be taxed during short-term assignments?
Any income considered to be of a national source, such as provision of services in Colombia.
Are there any additional considerations that should be considered before initiating a short-term assignment in Colombia?
There are no other considerations regarding short-term assignments to Colombia.
All information contained in this publication is summarized by KPMG Advisory, Tax & Legal S.A.S., the Colombian member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Colombian tax code, law 1943 of 2018, decree 1625 of 2016 and subsequent amendments, additional tax legislation and tax authority guidance.
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