Colombia — Retención en la Fuente, Seguridad Social, IVA, Impuesto de Renta 2026
💰 Retención en la Fuente por Salarios (Income Tax)
Colombian employment income tax with 7 progressive brackets (0%-39%). Calculated on annual taxable income in UVT. Health (4%) and pension (4%) contributions deducted before calculation. UVT 2025 ≈ COP$42,412.
COP$
📌 Retención en la Fuente 2026:
7 brackets: 0% (≤1,090 UVT) / 19% / 28% / 33% / 35% / 37% / 39%. UVT 2025 ≈ COP$42,412. Exemption threshold: 1,090 UVT ≈ COP$46.2M/year. Health (4%) and pension (4%) deducted first. Additional deductions: 25% labor income exemption (capped at 7,080 UVT), dependents (360 UVT each), mortgage interest, voluntary pension contributions. Non-residents: flat 35% on Colombian-source income. Proposed reform: Top rate may increase to 41% (pending Constitutional Court review). Minimum wage 2025: COP$1,423,500/month. 13 monthly payments (12 salary + prima de servicios in June/December).
📊 Colombia Tax Rates Overview 2026
Tax Type
Rate
Details
Renta (≤1,090 UVT)
0%
Exempt threshold
Renta (1,091-1,700 UVT)
19%
Lowest bracket
Renta (1,701-4,100 UVT)
28%
Lower-middle
Renta (4,101-8,670 UVT)
33%
Middle
Renta (8,671-18,970 UVT)
35%
Upper-middle
Renta (18,971-31,000 UVT)
37%
High income
Renta (>31,000 UVT)
39%
Top rate
Health Employee
4%
EPS contribution
Pension Employee
4%
AFP contribution
Health Employer
8.5%
EPS (exempt if <10 SMMLV)
Pension Employer
12%
AFP contribution
IVA (Standard)
19%
Most goods & services
IVA (Reduced)
5%
Some goods
Renta Corporativa
35%
General regime (highest in LatAm)
GMF (4x1000)
0.4%
Financial transactions tax
ICA (Municipal)
0.2-3.3%
Industry & commerce tax
📌 UVT (Unidad de Valor Tributario):
UVT 2025 ≈ COP$42,412. Adjusted annually by DIAN for inflation. All tax brackets, exemptions, and deductions are expressed in UVT multiples. Colombia has one of the highest corporate tax rates in Latin America (35%). Combined with dividends tax (20% for non-residents), effective rate for foreign investors ≈ 48%. ICA (Impuesto de Industria y Comercio) is a unique municipal tax on all industrial, commercial, and service activities — rates vary by city (Bogotá: 0.2%-3.3%). GMF (Gravamen a los Movimientos Financieros / 4x1000): 0.4% on ALL bank transactions — unique to Colombia.
📌 IVA 2026:19%: Most goods & services, electronics, clothing, restaurants, alcohol. 5%: Some specific goods. 0% (Exempt): Exports, basic unprocessed food (rice, beans, milk, eggs, bread, fruits, vegetables), medical services, education, public passenger transport, books/newspapers. GMF (4x1000): 0.4% tax on ALL financial transactions (bank transfers, cash deposits, checks). Unique to Colombia. 50% of GMF paid is deductible from income tax. Filing: Bimestral (every 2 months) for most taxpayers via Formulario 300. Monthly for large taxpayers (Grandes Contribuyentes).
🏢 Impuesto de Renta Corporativo (35%)
Corporate income tax: 35% — one of the highest in Latin America. Plus dividend withholding 20% for non-residents. Effective combined rate ≈ 48%.
COP$
🏠 ICA & GMF (Municipal + Financial Tax)
ICA (Impuesto de Industria y Comercio): Municipal tax on gross revenue, 0.2%-3.3%. GMF (4x1000): 0.4% on all financial transactions.
COP$
📌 Corporate Tax Notes:Renta Corporativa (35%): Colombia has the highest corporate tax rate in Latin America. Tourism/hotels: 15% (reduced). ZOMAC zones: reduced rates for investment. Free trade zones: 20%. Dividend tax: 20% withholding on dividends to non-residents. For residents with DTA countries, credit for corporate tax paid. Combined effective rate ≈ 48% for foreign investors. ICA: Unique municipal tax on gross revenue (not profit!). Bogotá: industry 0.2-0.65%, commerce 0.2-1.1%, services 0.2-3.3%. Filed annually or bi-monthly. GMF (4x1000): Every COP$1,000 in bank transactions → COP$4 tax. Applies to transfers, withdrawals, checks. 50% deductible from income tax.