Colombia: New Tax Reforms Aim to Curb Tax Evasion and to Expand Taxpayer’s Pool
Colombian lawmakers wanted to tackle the problem of tax evasion head-on. Hence, the government proposed a few structural tax reforms last year.
Finance Minister Mauricio Cardenas confirmed this while speaking to the media. He said the new tax reforms would counter tax evasion and create a larger pool of taxpayers in the country. This will also offload tax burden from individuals and corporations.
Colombia is one of the top oil exporters in the world. And, crude oil remains its most important source of foreign exchange. But in the last two years, the global crude oil prices have plummeted to an all-time low. This has created a huge dent in the country’s foreign exchange reserve. The new tax reforms would give the government some relief by counterbalancing this revenue shortfall.
The Colombian government had set up an expert panel to study its proposed bill. It was this panel’s initial report that suggested an urgent tax reform to make up for the huge loss of income to the country. The lawmakers then gave the new tax reforms bill and asked the panel to look into each of the proposed bills in detail.
This exercise was to make the tax reform bill as comprehensive as possible. One that can touch upon every aspect of corporate and individual income tax. The bill will soon be tabled to become the law of the land. The government hopes that these reforms would bring the Colombian economy and the foreign investment back on track.
The information shared in the article gives general information only, and not professional advice. If you want specific support or details about doing business in Colombia, please contact us below or call +1-408-913-9130 to speak to our experts.