Colombia Constitutional Court Upholds Dividends Tax

Colombia’s constitutional court has rejected an appeal arguing the country’s tax on dividends was confiscatory.

The appeal, brought by Colombian lawyer Humberto Sierra Porto, failed to demonstrate the confiscatory nature of the increase in the rate of tax on dividends, the constitutional court said in a ruling published Wednesday.

Under the law, a withholding tax on outbound payment of dividends distributed out of taxed profits at the company level increased to 20% from 10%. Inter-corporate dividends distributed to a local company from profits taxed at the corporate level are taxed at 10%.

“The appellant failed to take into account ...