Visit this link for an up to date information: https://www.bizlatinhub.com/corporate-compliance-colombia/ Starting a business in Colombia? It's important to understand the local regulations that set out your corporate responsibilities. Find out about national taxes, social benefits, and corporate and labour obligations for your business.

1. Corporate Compliance
For Legal Entities in
Colombia
www.bizlatinhub.com

2. Colombia’s Compliance Requirements
Regardless of their commercial activity, all legal entities located in Colombia must
comply with a series of obligations managed by various government entities.
These obligations fall within the following categories:
1. Corporate obligations
2. National taxes
3. Labor obligations
4. Social benefits

3. 1. Corporate Obligations
The legal entity has to meet certain corporate obligations to ensure that it is
compliant with local legal requirements.
A) Renewal of its Commercial License with the Chamber of Commerce
Deadline: On an annual basis, before the 30th of March.
B) Hold a Shareholder Meeting
Deadline: On an annual basis, before the 30th of March.
C) Preparation and filing of “Reporte de Información Exogéna”
(Report of Exogenous Information) before DIAN (National Tax Authority).
Deadline: On an annual basis, the exact month depends on the activities of the
company

4. 2. National Taxes
Every legal entity in Colombia has to meet tax obligations to ensure that it is
compliant with the legal tax requirements of the National Tax Authority, the
DIAN.
Calculation, preparation and filing of tax declarations with the DIAN is required on a
monthly and annual basis. The most prevalent taxes are the following:
IVA – “Impuesto al Valor Agregado” (VAT - Value Added Tax)
ICA – “Impuesto de Industria y Comercio” (Industrial and Commercial Tax)
Withholding Taxes – “Retención en la Fuente”
(Depending on the tax and the quality of the services)
Deadlines: IVA and ICA depend on company activity. The withholding taxes depend
on company services.

5. 3. Labor Obligations
Every legal entity in Colombia has certain labor obligations:
a) Prima: Primas are a bonus that employees receive every 6 months, paid at
the end of June and December. They should be half a month salary.
b) Vacation: 15 days
c) Government Entity: The UGPP monitors the companies so the labor
obligations are met, but no reports are required

6. 4. Social Benefits
The legal entity is required to provide social benefits:
• Equalization Fund - Caja de Compensación
• Severance Pay - Cesantias
• Health Contribution - Aporte para salud, EPS
• Pension Contribution - Aporte para pension
• Occupational Risk Contribution - Riesgos Laborales ARL
Deadline: Within the first week after the salary payment.
Government Entity: The UGPP monitors the companies so the social benefits are
paid, but no reports are required.

7. Schedule of Annual Corporate Requirements
Requirement to be presented Frequency Date of Filing Government Agency
Renewal of Commercial Licence Annual 30 March Cámara de Comercio
Hold a Shareholder Meeting Annual 30 March -
Filling of “Reporte de Información Exogéna” Annual Depends on company’s activities DIAN
Monthly IVA (VATs) Monthly Depends on company’s activities DIAN
Monthly ICA (Industrial and Commercial Tax) Monthly Depends on company’s activities DIAN
Monthly Withholding Taxes Monthly Depends on company’s services DIAN
IVA (VATs) Annual Depends on company’s activities DIAN
Annual ICA (Industrial and Commercial Tax) Annual Depends on company’s activities DIAN
Annual Withholding Taxes Annual Depends on company’s services DIAN
Prima and Vacations Biannual Depending on employee’s start date UGPP
Equalization Fund Monthly First week after the salary payment UGPP
Cesantías (Severance Pay) Monthly First week after the salary payment UGPP
EPS (Health and Pension Contribution) Monthly First week after the salary payment UGPP
ARL (Occupational Risk Contribution) Monthly First week after the salary payment UGPP

8. Biz Latin Hub is a market leader in
helping individuals and companies to
successfully do business globally and has
multilingual services that are reliable,
tailored and responsive.
Our group is owned and managed by an
experienced team of local and expat
professionals, dedicated to assisting our
clients to navigate their way through the
complexities of the global business
environment.
We can help!

9. See how our services can support
your global expansion.
Due Diligence Legal Services
Accounting
& Taxation

10. Are you ready to expand globally?
Contact us now.
contact@bizlatinhub.com
www.bizlatinhub.com