Colombian Bill proposes tax reforms and introduction of a BO register

The Colombian government has recently submitted to its Congress a tax reform Bill, the Social Investment Law (Ley de Inversión Social).

The bill includes:

1. modifications to VAT, with certain exclusions such as the one for foreign portfolio investments fixed-income securities (now subject to a 5%withholding tax) ;
2. an increase to 35% of corporate income tax;
3. a new income tax invoicing mechanism for individual taxpayers that enables enforcement of invoices by the tax authorities;
4. a 3% surtax on income for the period 2022-2025 for financial institutions with a taxable income of more than 120,000 tax units;
5. an income tax amnesty from January 2022;
6. the proposal to create a beneficial ownership register, where a beneficial owners would be a natural person who individually or jointly owns at least 5 percent of the capital or voting rights of an entity.

SOURCE: img.lalr.co