Income tax withholding method in Colombia

Article author
Mika
  • Updated

Every January, employees based in Colombia decide how their income tax will be deducted for the upcoming year and inform Remote.

  • If we do not receive your decision, option 1 will be automatically applied.
  • Once decided, this cannot be altered during the year.

What are the options?

  • Option 1: Applying the income tax rate based on your monthly income

    If you select this option, your monthly income will be taxed using the rates in the table below, calculated based on your net income.

  • Option 2: Applying the income tax rate based on your average income from the past 12 months

    If you select this option, a fixed rate determined by your average income from the date you joined Remote will be applied to your salary for the first 6 months of 2024 (January to June).

    This fixed rate will be recalculated in June 2024, based on the average income between June 2023 and May 2024. The recalculated rate will be applied from July to December 2024, using the same tax table below.

2024 tax rate table

  • No change from 2023

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Income tax filing in Colombia

The tax season in Colombia for individuals starts in August and ends in October each year. Filing late can incur penalties, late fees, and interest.

Each year the DIAN will issue a schedule of when individual filing deadlines will fall based on the last numbers of your cedula.

You can visit the DIAN page for full details.

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