{"id":12874,"date":"2025-02-27T12:44:00","date_gmt":"2025-02-27T17:44:00","guid":{"rendered":"https:\/\/nexo.legal\/?p=12874"},"modified":"2025-07-15T17:24:34","modified_gmt":"2025-07-15T22:24:34","slug":"withholding-taxes-in-colombia-procedure-2025","status":"publish","type":"post","link":"https:\/\/nexo.legal\/es\/withholding-taxes-in-colombia-procedure-2025\/","title":{"rendered":"Procedimiento de Retenci\u00f3n en la Fuente en Colombia para 2025"},"content":{"rendered":"\t\t
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Withholding Tax Procedure in Colombia for 2025\n<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Withholding tax (retenci\u00f3n en la fuente) is an advance tax collection mechanism used in Colombia to ensure compliance with tax obligations.<\/span><\/p>

In 2025, this procedure remains essential for both employers and taxpayers subject to withholding.<\/span><\/p>

This guide explains the withholding tax procedure, updated rates, and the obligations that companies and individuals must comply with.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What is withholding tax and why is it important?<\/i><\/b><\/span><\/h3>

Withholding tax is an advance payment of income tax, VAT, and other levies, which withholding agents must deduct when making a payment subject to withholding.<\/span><\/p>

This mechanism allows DIAN (Colombian tax authority) to collect taxes more efficiently and prevent tax evasion.<\/span><\/p>

For businesses and employees, understanding how withholding tax works is crucial to avoid penalties and optimize tax planning.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Entities Required to Withhold Tax\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The following taxpayers are obligated to apply withholding tax:<\/span><\/p>

\u2714 Employers who pay salaries to their employees.<\/span>
<\/span>\u2714 Companies that make payments subject to withholding, such as fees, commissions, services, leases, among others.<\/span>
<\/span>\u2714 Legal entities and large taxpayers designated by DIAN, who are self-withholding agents, meaning they apply withholding tax on their own transactions.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Withholding Tax Rates for 2025<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The withholding tax rates vary depending on the type of income or transaction.<\/span><\/p>

Below are the updated withholding tax rates for 2025:<\/span><\/p>

a. Withholding on Salaries<\/b><\/h3>

\u2714 Applies when income exceeds 95 UVT per month ($4,730,905 COP in 2025).<\/span>
<\/span>\u2714 The rate is calculated based on the progressive withholding table established by DIAN.<\/span><\/p>

b. Withholding on Professional Fees<\/b><\/h3>

\u2714 11% for tax filers.<\/span>
<\/span>\u2714 10% for non-filers.<\/span>
<\/span>\u2714 No minimum threshold; applied on 100% of the payment.<\/span><\/p>

c. Withholding on General Services<\/b><\/h3>

\u2714 4% for tax filers.<\/span>
<\/span>\u2714 6% for non-filers.<\/span>
<\/span>\u2714 Applies when the payment exceeds $199,000 COP.<\/span><\/p>

d. Withholding on Real Estate Rentals<\/b><\/h3>

\u2714 3.5% for both tax filers and non-filers.<\/span>
<\/span>\u2714 Applies when the payment exceeds $1,345,000 COP.<\/span><\/p>

e. Withholding on Movable Property Rentals<\/b><\/h3>

\u2714 4% for both tax filers and non-filers.<\/span>
<\/span>\u2714 No minimum threshold; applied on 100% of the payment.<\/span><\/p>

f. Withholding on Purchases<\/b><\/h3>

\u2714 2.5% for tax filers.<\/span>
<\/span>\u2714 3.5% for non-filers.<\/span>
<\/span>\u2714 Applies when the purchase exceeds $1,345,000 COP.<\/span><\/p>

g. VAT Withholding<\/b><\/h3>

\u2714 Applies when the buyer is VAT-liable and the supplier is under the Simplified Tax Regime.<\/span>
<\/span>\u2714 Rate: 15% of the VAT charged.<\/span>
<\/span>\u2714 For foreign payments, VAT withholding applies at 19%.<\/span><\/p>

h. Withholding on Payments Abroad<\/b><\/h3>

\u2714 The rate varies depending on the country where the purchase is made.<\/span>
<\/span>\u2714 Typically ranges between 10% and 20%.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Procedure for Applying Withholding Tax<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The step-by-step process for applying withholding tax correctly is as follows:<\/span><\/p>

\u2714 Identify the payment subject to withholding: Determine if the payment is subject to withholding tax and the applicable rate.<\/span><\/p>

\u2714 Calculate the withholding tax: Apply the corresponding withholding rate on the total amount before making the payment.<\/span><\/p>

\u2714 Deduct the amount from the beneficiary’s payment: The amount withheld must be deducted from the payment made to the beneficiary.<\/span><\/p>

\u2714 Declare and pay the withheld amount: Businesses and withholding agents must file the withholding tax return and pay the withheld amounts within the deadlines established by DIAN.<\/span><\/p>

\u2714 Issue withholding tax certificates: At the end of the fiscal year, withholding agents must provide certificates to individuals or companies subject to withholding.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Filing Deadlines in 2025<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The DIAN tax calendar sets the deadlines for filing and paying withholding tax on a monthly basis.<\/span><\/p>

\u2714 Deadlines vary depending on the taxpayer\u2019s NIT (Tax Identification Number).<\/span>
<\/span>\u2714 It is crucial to check the DIAN calendar annually to avoid penalties and late payment interest.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Penalties for Non-Compliance<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Failure to comply with withholding tax obligations may result in significant penalties, including:<\/span><\/p>

\u2714 Late Filing Penalty: Ranges from 1% to 20% of the undeclared withheld tax.<\/span><\/p>

\u2714 Omission Penalty: A fine between 100% and 200% of the unwithheld or undeclared amount.<\/span><\/p>

\u2714 Late Payment Interest: Applied to the unpaid amount after the due date.<\/span><\/p>

To avoid these penalties, it is highly recommended to maintain detailed control of tax obligations and ensure timely compliance with deadlines.<\/span><\/p>

Withholding tax is a key mechanism within Colombia\u2019s tax system, and its proper management is essential to avoid penalties and optimize tax efficiency.<\/span><\/p>

It is crucial for businesses and employers to understand the applicable rates, procedures, and deadlines for 2025 to ensure full regulatory compliance.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Need Help Managing Your Withholding Tax and Fiscal Obligations?\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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At Nexo Legal, we provide specialized advisory services to help you properly manage withholding tax and other tax obligations.<\/span><\/p>

\ud83d\udce9 Contact us today and ensure your company\u2019s tax compliance in 2025!<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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