Colombia

Colombia's Rankings
CategoryRankScore
Overall Rank3155.01
Corporate Taxes3733.96
Individual Taxes296.97
Consumption Taxes2065.06
Property Taxes2355.1
Crossborder Taxes3543.74

Colombia ranks 31st overall on the 2021 International Tax Competitiveness Index, the same as in 2020.


Strengths

  • A worker earning the nation's average wage faces the lowest tax burden in the OECD.
  • Colombia taxes dividends and capital gains at very low rates.
  • While capital gains resulting from inheritance and gifts received are subject to a 10 percent tax, there is no comprehensive estate or inheritance tax.

Weaknesses

  • The VAT base is very narrow, covering less than 40 percent of Colombian consumption.
  • Colombia levies a net wealth tax and a financial transactions tax.
  • At 31 percent, Colombia's corporate income tax rate is significantly above the OECD average (22.9 percent).

Learn more about the tax system in Colombia

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