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It is a document with key information about the main guidelines to consider when developing business in Colombia. You will find a brief review of the current conditions and main economic indicators, as well as a summary of the essential regulatory aspects for companies and investors.
The Ethics and Compliance Programs (PEC) to be implemented by the companies in Colombia gather a series of guidance and recommendations about international standards and best practices that may vary according to different aspects. Some of these factors are the sector or industry to which they belong, total revenue and/or total assets of the company.
The international investments in Colombia are divided in foreign investment in Colombia and Colombian capital investment abroad.
In order to promote trade, investment and employment generation in the country, there is a free-trade regime in Colombia composed by geographical areas within the country, but for customs purposes they are considered as external territories.
The formal obligations are Local Report, Master Report, Country-per-Country Report, Notification of Country-per-Country Report, and Informative Statement of Pricing Transfer.
The formal sanctions for the pricing transfer regime are included in the Article 260-11 of the Tax Statute.
The Colombian legal system incorporates different jurisdictions within its legislation. Through them, controversies between individuals, and between them and the State can be solved. As a general rule, controversies between individuals are solved before the Ordinary Jurisdiction, while those with the State should be solved before the Contentious-Administrative Jurisdiction.
The Colombian tax system establishes taxes at national and subnational (departmental and municipal) level. The main taxes at national level are income tax and complementary capital earning tax, equity tax (temporary validity), sales tax (VAT), special national tax, and tax on financial movements.
However, foreign entities are only encumbered for their income and occasional gains from national source.
In Colombia, investment vehicles are supported by constitutional principles, such as the equality right, company freedom protection, and private initiative.
There are six regular obligations that are required for companies and other entities by the legislation:
The state contracting is a set of standards regulating all procedures performed by State entities to execute any required contracts to comply with institutional duties, goals, and objectives.
Any controversies between individuals are solved before the Ordinary Jurisdiction, while those with the State should be solved before the Contentious-Administrative Jurisdiction. In order to guarantee the principles of the administrative duty, a series of modalities to select contractors have been established:
The labor law is divided in two areas, Individual Labor Law regulating any relationships between employer and employees, and Collective Labor Law.
Every employer must pay its workers, who earn an ordinary wage, the following social benefits: severance aid, interests on severance, service premium, transport, footwear, and clothing aid.
Foreign workers have the same rights and obligations as Colombian workers.
Colombia regulates the entry and permanence of foreign people in the country through a migratory regime. This chapter provides the regulations established by the Ministry of Foreign Relations for citizens from restricted countries.
The Colombian migratory regime offers more than 20 types of visas as well, between which the following stand out:
Socia Fusiones, Adquisiciones y Estructuración de Proyectos, PwC Colombia
Tel: (571) 6340555 Ext. 10280
Gerente líder Marketing & Sales, PwC Colombia
Tel: (571) 634 0555
Coordinador Marketing & Sales, PwC Colombia
Tel: (571) 634 0555