Colombia MOF Posts Decree Regulating Taxation of Digital Services, Taxpayers With Significant Economic Presence

The Colombian Ministry of Finance and Public Credit Nov. 27 posted online Decree No. 2039/2023, regulating the taxation of digital services and taxpayers with a significant economic presence. The decree includes measures: 1) introducing new requirements for the taxation of a significant economic presence of nonresident individuals or entities not domiciled in Colombia, effective Jan. 1, 2024; 2) explaining that nonresidents are subject to a tax rate of 3 percent on gross income from the sale of goods and provision of digital services, subject to withholding unless the taxpayer obtains approval for the non-application of withholding at the source; 3) ...