The new tax reform, (Law 2277 of 2022) brought with it a purely fiscalnotion called the significant economic presence. This figure applies to the sale of goods and / or services made by persons or entities not domiciled in the country, in favor of customers and / or users located in the national territory.
This new tax figure begins to take effect from January 1, 2024, the collection of this tax can be done by two means: 1) Through withholding at the source at a rate of 10% and, 2) Through the income statement with a rate of 3% on all gross income derived from the sale of goods and / or digital services from abroad.
BUT WHAT IS MEANT BY “SIGNIFICANT ECONOMIC PRESENCE?”
It is the deliberate and systematic interaction of non-resident persons or entities not domiciled in the country with 300,000 or more clients or users located in Colombian territory during the previous taxable year or current taxable year, and who have additionally obtained gross income greater than 31,300 UVT, corresponding to $ 1,327,496,000 pesos for the year 2023.
DIGITAL SERVICES SUBJECT TO NEW TAXATION BASED ON “SIGNIFICANT ECONOMIC PRESENCE”
Some of the digital services provided from abroad, which are subject to the new tax would be:
1. streaming services, including TV shows, movies, streaming, music, streaming media, podcasts among others.
2. Online intermediation platforms (Ride hailing apps, social media, etc.)
3. Digital subscriptions to audiovisual media, including, but not limited to, news, magazines, newspapers, music, video games.
4. Advertising services