Tax and Accounting Obligations for SAS in Colombia in 2025: Complete Guide
If you own a Simplified Stock Company (SAS) in Colombia or plan to establish one in 2025, it is crucial to understand the tax and accounting obligations you must comply with to avoid penalties and operate smoothly.
Beyond offering products or services, running a business means staying up to date with taxes, invoicing, financial reports, and regulations.
In this updated guide, we explain in simple terms the main tax and accounting obligations for SAS in Colombia in 2025 and how you can manage them efficiently.
1. Income tax: The primary obligation
The Corporate Income Tax (Impuesto sobre la Renta y Complementario) is the main tax that SAS must pay. This tax applies to the company’s net taxable income earned during the fiscal year.
- General tax rate for 2025: 35% on taxable income.
- Companies in Free Trade Zones: 20%.
How and When to Pay?
SAS must file their income tax return following the DIAN tax calendar, with deadlines between April and May, depending on the company’s Tax Identification Number (NIT).
To avoid errors, it is essential to maintain clear and updated accounting records.
2. Withholding tax: Advance payments to the government
Withholding tax (retención en la fuente) is a mechanism where businesses act as tax withholding agents, deducting taxes from payments made to employees, suppliers, or contractors and remitting them to the government.
Main Withholding Tax Rates
- Withholding on salaries: Depends on the employee’s income level.
- Withholding on professional fees and services:
- 4% for companies.
- 10-11% for individuals.
- Withholding on purchases of VAT-taxed goods: 1.5%.
- Withholding on payments abroad: 20% for technical services, consulting, and advisory services.
SAS must file and pay withholding tax monthly, with the deadline on the 10th of each month.
3. Value added tax (VAT): Not all businesses pay it
If your company sells goods or provides taxable services, you are required to collect and file VAT.
Main VAT Rates
- General VAT rate: 19%.
- Reduced VAT rate: 5% for certain goods and services, such as agricultural supplies, medical equipment, and tourism services.
- 0% VAT rate: Applies to exports and essential goods.
Businesses must file VAT returns either bimonthly or quarterly, depending on their income level. Failure to collect and remit VAT correctly can result in severe penalties.
Companies under the Simplified Tax Regime (Régimen Simple de Tributación) file VAT annually.
4. Industry and commerce tax (ICA): The municipal tax
The Industry and Commerce Tax (ICA) is a municipal tax that applies to all businesses engaged in commercial, industrial, or service activities in a city.
- Rates: Range from 0.2% to 1% of gross revenue, depending on the business activity and location.
- Payment frequency: ICA is paid annually, within the first half of the year, and deadlines vary by municipality.
Not all SAS are required to pay ICA, as some may qualify for local tax exemptions.
5. Exogenous information: Financial transaction reporting
Exogenous Information (Información Exógena) is a detailed report that SAS must submit annually to DIAN, disclosing all financial transactions with clients, suppliers, and third parties.
This report enables DIAN to maintain accurate financial oversight, detect irregularities, and prevent tax evasion.
Who Must File It?
All companies that meet DIAN’s revenue and transaction thresholds must file this report.
For 2025, the minimum thresholds include:
- Companies with gross income exceeding 2,400 UVT annually.
- Individuals with gross income over 11,800 UVT, and income from capital or non-labor sources exceeding 2,400 UVT.
- Individuals under the Simplified Tax Regime with income over 11,800 UVT.
What Information Must Be Reported?
The Exogenous Information Report includes:
✔ Payments to suppliers and contractors.
✔ Revenue received from clients.
✔ Transactions with banks and significant financial movements.
✔ Withholdings applied to employees and third parties.
✔ Declaration of assets and liabilities.
Filing Deadlines
The Exogenous Information filing deadlines coincide with income tax return deadlines. SAS must verify the DIAN tax calendar to avoid penalties.
Penalties for Non-Compliance
Failure to file the Exogenous Information report within the required deadlines can lead to severe financial penalties, including:
- Fines calculated based on unreported transactions.
- Additional penalties for omissions or errors.
- Potential tax audits and investigations by DIAN.
To avoid issues, it is crucial to maintain accurate accounting records and seek specialized accounting advice to ensure compliance.
6. Electronic Invoicing: Mandatory for All SAS
For several years, electronic invoicing has been mandatory for all SAS in Colombia. This measure aims to modernize taxation and reduce tax evasion.
How to Implement It?
By using DIAN-authorized invoicing software.
Benefits
✔ Better financial control.
✔ Simplifies tax reporting.
Penalties for Non-Compliance
Failure to issue electronic invoices can result in fines and even business closure.
7. Accounting under IFRS standards
SAS must maintain their accounting records following the International Financial Reporting Standards (IFRS).
This ensures that financial statements are clear, comparable, and auditable.
For many businesses, adopting IFRS may require adjustments, making professional accounting assistance highly recommended.
8. Social security and payroll taxes
SAS are required to enroll employees in the health, pension, and occupational risk system, as well as contribute to:
✔ SENA (National Apprenticeship Service)
✔ ICBF (Colombian Institute for Family Welfare)
✔ Compensation Funds
These mandatory contributions are paid monthly, and failure to comply can lead to penalties and labor lawsuits.
9. Tax changes in 2025: New regulations
In 2025, the Colombian government has introduced temporary tax measures, including:
✔ A new 1% tax on oil and coal sales.
✔ A 19% VAT on online gambling.
✔ Increased oversight of bank transactions and digital operations.
Businesses must assess how these changes impact their tax obligations and plan accordingly.
How can I stay compliant with all these obligations?
Managing all these responsibilities can be overwhelming, but with proper planning and professional support, your business can meet its tax obligations hassle-free.
Key Tips for Compliance
✔ Automate your accounting and invoicing with DIAN-authorized software.
✔ Stay informed about tax updates.
✔ Consult an accountant to avoid mistakes and optimize your tax burden.
✔ File your tax returns on time to avoid penalties and surcharges.
Need Help Managing Your SAS Tax and Accounting Obligations?
At Nexo Legal, we are ready to assist you.
📩 Contact us today and ensure your business’s financial security in 2025!
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Subsequently, a specialist will be assigned to your case, reaching out to you within a day to clear up details about your case and outline the next steps to help you achieve your goals.
Get started with a free case assessment
What will happen after you fill out this form?
After submitting the form, your case undergoes a comprehensive review by our team of specialist to assess its viability. Providing clear and concise information about your objectives accelerates this process.
Subsequently, a specialist will be assigned to your case, reaching out to you within a day to clear up details about your case and outline the next steps to help you achieve your goals.
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