What Are Colombia’s Accounting and Tax Requirements for Companies?

Companies in Colombia must keep books in Spanish under Colombian IFRS-based frameworks and determine their functional currency under the applicable standard. With corporate income tax at 35% and DIAN validation for electronic invoices where required, accounting requirements in Colombia demand early planning.

In this blog, we cover accounting frameworks, statutory books, tax obligations, and audit duties. We also explain company filing deadlines in Colombia, so you can plan your expansion with confidence.

Who Regulates Company Accounting and Tax in Colombia?

Company compliance in Colombia rests on three institutions: the national tax authority, the corporate supervisor, and the local commercial registry.

The Dirección de Impuestos y Aduanas Nacionales (DIAN) administers national taxes — income tax, VAT, withholding, customs, and electronic invoicing. The Superintendencia de Sociedades supervises companies and collects financial statement information, while local Chambers of Commerce maintain the commercial registry.

The legal foundation is equally layered. Commercial Code rules govern books and corporate meetings, Law 1314 of 2009 established the IFRS-based accounting framework, and the Estatuto Tributario consolidates the national tax rules. Municipalities levy their own industry and commerce tax on top.

In practice, one company answers to three or more regulators at once. We help clients map those touchpoints at incorporation, so nothing surprises them at their first year-end.

What Are the Core Accounting Requirements in Colombia?

Every company must keep its books in Spanish and apply the Colombian IFRS-based framework that Law 1314 of 2009 established, using its applicable functional currency.

Accounting records must be kept in Spanish, expressed in the entity's functional currency, and supported by chronological books and vouchers under double-entry principles. Which version of the framework applies depends on your company's size classification.

1. Full IFRS for large companies

Securities issuers, public-interest entities, and certain large companies meeting additional Group 1 criteria report under full IFRS, known locally as NIIF plenas. The mandate has applied to reporting periods beginning on or after 1 January 2015, so there is no transition window left. Groups can usually align Colombia reporting with parent-company IFRS policies.

2. IFRS for SMEs for smaller companies

Small and medium-sized companies apply IFRS for SMEs, the NIIF para PYMES. Classification depends on the Group 1, Group 2 and Group 3 criteria, including assets, headcount, group relationships, public-interest status and, where relevant, import or export activity. It is a simplified standard, but it is still IFRS — not local GAAP.

3. Simplified framework for micro-enterprises

Micro-enterprises may use the simplified Group 3 framework in Annex 3 of Decree 2420 of 2015. It compiles the framework introduced by Decree 2706 of 2012. Eligibility depends on the applicable micro-enterprise criteria. Outgrowing them triggers a framework change.

4. Statutory audit duties

Companies meeting the size criteria in Law 43 of 1990, or handling public funds, must appoint a revisor fiscal — an independent statutory auditor. The appointment is a corporate obligation, not an optional comfort. Qualifying companies should budget for it from year one.

What Taxes Must Companies in Colombia Pay?

Companies face a 35% corporate income tax, a 19% VAT rate, a municipal ICA, and layered withholding taxes on payments abroad.

The headline corporate income tax rate has been 35% since fiscal year 2023. The 2022 tax reform, Law 2277 of 2022, kept the general rate there. It added a temporary surcharge for certain financial entities. Here is how the main obligations stack up.

1. Corporate income tax at 35%

The general corporate income tax rate has been 35% since 2023. Certain financial entities above the applicable threshold pay a 5-percentage-point surcharge through 2027 under Law 2277 of 2022. Tax losses can generally be carried forward, subject to statutory limits.

2. Value-added tax (VAT) at 19%

The standard rate is 19%, with reduced rates of 5% and 0% for listed goods and services. VAT returns are generally filed monthly or bimonthly, depending on the taxpayer's classification.

3. Municipal industry and commerce tax (ICA)

Every municipality levies ICA on gross receipts. Rates generally fall between roughly 0.2% and 1.4%, varying by city and by activity. Bogotá and Medellín each publish their own tariff tables.

4. Withholding and dividend taxes

Cross-border payments can attract withholding. The applicable rate depends on the payment type and any tax treaty. Dividends to foreign entities and non-resident individuals are generally taxed at 20% under Law 2277 of 2022. The treatment of underlying profits and any tax treaty can affect the result.

5. Transfer pricing

Colombia joined the Organisation for Economic Co-operation and Development (OECD) in 2020, and related-party dealings must meet the arm's length standard. Transfer-pricing documentation and the informative return may be required above thresholds set annually in UVT tax-value units.

What Are the Key Filing and Reporting Deadlines?

Companies must hold their ordinary shareholders' meeting within the first three months of the year. DIAN sets the annual income tax filing date.

Compliance in Colombia follows the calendar year. DIAN publishes an annual decree fixing the exact income tax schedule, so the pattern below is the standard rhythm rather than a fixed timetable.

1. Shareholders' meeting and financial statements

The ordinary shareholders' meeting must take place within the first three months of each year. It reviews and approves the prior year's financial statements, which then go to the relevant registry or supervisor under the applicable schedule.

2. Income tax return

For the 2026 calendar, companies other than large taxpayers must file their 2025 income tax return and pay the first instalment from 12 to 26 May, based on the last digit of the company's tax identification number (NIT). The second instalment is due from 9 to 23 July 2026.

3. Electronic invoicing and reporting

Taxpayers required to invoice must issue electronic invoices with prior DIAN validation, subject to permitted contingency procedures. Employers subject to electronic payroll must transmit the payroll-support document for validation within the first 10 days of the following month.

4. Registry and ownership filings

Companies renew their commercial registry information annually and must report ultimate beneficial owners through DIAN's RUB under Law 2155 of 2021. RUB information is updated when changes exist as of 1 January, 1 April, 1 July, or 1 October, within the following month. Missed renewals block certificates and filings — a common stumble we see with foreign-owned companies.

How Does Colombia Compare With Singapore?

Colombia taxes profits at more than double Singapore's headline rate, but both jurisdictions report under IFRS-aligned frameworks.

For groups headquartered in Singapore, the contrast matters when forecasting effective tax costs. Singapore's headline corporate income tax rate stands at 17% as at 2026, with Goods and Services Tax (GST) at 9%. The Accounting and Corporate Regulatory Authority (ACRA) charges an S$300 incorporation fee through its Bizfile portal, and incorporation can complete within a day.

On the filing side, the Inland Revenue Authority of Singapore (IRAS) requires the Estimated Chargeable Income within three months of the financial year-end. Form C-S or Form C is due by 30 November 2026. Colombia's calendar is instead anchored to DIAN's annual decree.

Colombia's 35% rate looks steep by comparison, though exemptions and treaty relief can soften the edge. What the two share is an IFRS basis, which makes group-level consolidation far smoother than in local-GAAP jurisdictions.

If you are weighing Colombia against other Latin American markets, see our guide on why set up business in Honduras. Our guide on why set up business in Puerto Rico also covers that market. When you are ready to plan a Colombia entry, visit our contact page.

Conclusion

Colombia demands IFRS-aligned books in Spanish and the entity's functional currency. Companies pay corporate income tax at a 35% general rate on DIAN's annual schedule, manage 19% VAT, municipal ICA, and withholding on cross-border payments, and meet other obligations such as the shareholders' meeting within three months of year-end, electronic-invoicing requirements, and statutory audit duties for larger companies. Getting each layer right from day one is far cheaper than untangling it later.

Across our six-continent network, we help clients register companies in Colombia, establish compliant statutory books, appoint the right local support, and align Colombia reporting with group IFRS policies. We also help you plan the tax calendar before the first financial year closes, so deadlines never slip.

If you want the accounting requirements in Colombia mapped against your specific structure, 3E Accounting Global's member firms are ready to help.

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