Colombia MOF Posts Decree Clarifying Changes to Calculation Methods for Income Tax Payments, Withholding Tax

The Colombian Ministry of Finance and Public Credit Jan. 2 posted online Decree No. 2231/2023, clarifying changes to the calculation methods for income tax payments, and withholding tax, resulting from the modifications created by the amendments in Law 2277 of Dec. 13, 2022, and Decree 1625 of 2016. The decree includes measures: 1) explaining that the calculation of net income will take into account the general limit of 40 percent, not exceeding 1,340 Annual Tax Value Units (UVT), when subtracting all exempt income and special deductions attributable from the calculated remaining income value; and 2) clarifying the optional treatment of ...