Colombia
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 31 | 55.01 |
| Corporate Taxes | 37 | 33.96 |
| Individual Taxes | 2 | 96.97 |
| Consumption Taxes | 20 | 65.06 |
| Property Taxes | 23 | 55.1 |
| Crossborder Taxes | 35 | 43.74 |
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