The new Colombian tax law, approved in December 2016, brought substantial changes to philanthropic giving in the country, among the most important are:
- Foundations will comply with the applicable income tax regime as any national business and only, exceptionally, can they become part of the special tax regime if they opt for a previous certificatory procedure.
- Foundations and CSOs are not exempted from:
- The payment of financial transaction contributions (0.4%)
- VAT
- Income withholding
- Parafiscal contributions
- Certified organizations must comply with the income tax and complementarities over the net benefit or excess to a standard fare of twenty percent (20%).
- There are several different types of tax structures for NPOs, as well as special conditions recognized for some NPOs, such as international NGOs and the Family Compensation Funds.
Photo credit: Reg Natarajan