Colombia | Lights and shadows of the tax reform

Summary

The Growth Law is good in terms of formalization. It also brings the tax statute closer to international standards. However, it falls short in improving the distribution of the tax burden between companies and individuals and in increasing tax collection, while maintaining and extending exemptions.

Key points

• Key points:
• Business informality and certain professions or trades are reduced.
• Lower income tax rate for companies.
• Marginal increase in the taxation of natural persons.
• Private investment decisions are centralized and distorted.
• Public spending is inflexibilized.

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