Colombia

Business Environment

Business practices

Closed hours and days: Banks in Bogota are open from Monday to Friday from 9.00 to 15.00 and in other cities, from 8.00 to 11.30 and from 14.00 to 16.30. The last working day of the month, they close at noon.

Public holidays

Compensation day

Periods when companies usually close

Standards

National standards organizations
Integration in the international standards network: The organisation responsible for setting of standards and the normalisation of the production is the Colombian Institute of Technical Standards and Certification (ICONTEC). This organisation is an active member of the ISO standards and International Electrotechnics Commission (ISC).
The standards set by the ICONTEC are optional. The Government, through the National Council of Standards and Qualities, can certify them for safety, health, and environment.
Classification of standards
Online consultation of standards
Certification organizations

Legal framework

Independence of justice: The judiciary is not independent and the country's judicial system remains slow and infected with corruption and extortion.
Equal treatment of nationals and foreigners: Foreign nationals can get almost the same treatment from judiciary as the natives, though there have been a few complaints.
The language of justice: Spanish is the judicial language in Columbia.
Having recourse to an interpreter: An interpreter can always be arranged.
Sources of the law and legal similarities: Colombia is a Republic state based on parliamentary democracy where the executive branch dominates government structure. Colombia (official name: Republic of Colombia) is one of the most violent countries in the world.
President is both chief of the state and head of the government. President holds the executive powers . President and the Vice-President are elected by popular vote for a four-year term.
The legislature in Colombia is bicameral. The parliament called Congress consists of: Senate (the upper house) and the House of Representatives (the lower house). The members of both the houses are elected by popular vote to serve four-year terms. The political rights of the people of the country are limited.
The judiciary is not independent and the country's judicial system remains slow and infected with corruption and extortion. The main source of the law in Colombia is the constitution of 1991 which is based on the Spanish law. Laws also originate from the judicial reviews of the executive and legislative acts. A new criminal code modelled after US procedures was enacted into law in 2004 and is gradually being implemented in the country. Spanish is the judicial language in Columbia; an interpreter can always be arranged.
Colombia is not ruled by law. The government is not able to guarantee the security of its citizens due to politically motivated and drug-related violence in the country. Foreign nationals can get almost the same treatment from judiciary as the natives, though there have been a few complaints. A high degree of corruption exists in the country. Corruption affects virtually all aspects of public life and extends far beyond the narcotics trade.
Consulting national laws online

Intellectual Property

National organizations: The competent body concerning industrial property is the Great estate management of Industry and Business (Superintendencia de Industria y Comercio).
Colombia signed the Agreement of Paris concerning the protection of industrial property and the agreement which establishes the World Intellectual property Organisation (WIPO). The country did not adhere to the PCT, on the protection of patents but the Congress is currently debating on this matter.
Since January, 1994, the regime of industrial property is more interesting after the decision 344 of the Agreement of Cartagene came into force. This decision strengthened the legal protection of patents and trademarks in all the countries of the Andean block.

National regulation and international agreements

Type of property	Law	Validity	International agreements signed
Patent	Patent Law 1997	20 years
Trademark			Trademark law treaty Nice agreement concerning the International classification of goods and Services for the Purposes of the registration of Marks Protocol relating to the Madrid Agreement concerning the International Registration of Marks
Design
Copyright
Industrial Models

Tax rates

Consumption taxes

Tax rate: 16%
Reduced tax rate: There are two reduced VAT rates in Colombia: 10% applies to commercial air transport and 7% applies to certain foodstuffs.
Are exempted items including insurance, healthcare, leasing of property for housing, financial leasing and utilities.
Higher rates from 20% to 25% apply to wines, other alcoholic beverages, pleasure boats and certain vehicles.

Corporate taxes

Tax rate

Capital gains taxation

Tax rate on long-term capital gains is 35%.

Other corporate taxes

Individual taxes

Tax rate

Allowable deductions and tax credit

Income generated from the following activities is exempt from income tax: seismic engineer for oil and gas industries; hotels (news and remodelled hotels); software and medical patents; fluvial transportation; and energy generated from wind source.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the convention signed on the website of the National Direction of taxes.
Whithholding taxes
Bilateral agreement

Sources of fiscal information

Tax Authorities: Ministry of Taxes; Customs in Colombia
Other domestic resources

Accounting rules

Tax year: The tax year begins on January the 1rst and ends on December the 31st of the same year.
Accounting regulation bodies
Accounting reports: PROFIT AND LOSS ACCOUNT: on December 31 n, to be compared with
n-1
1) Running products
2) Gross profit
3) Running expenses
4) Running income
5) Cost of global financing
6) Profits before income tax
7) Net profit.
Publication: The Colombian Business Code doesn't give any details regarding the obligations concerning the book-keeping or the accounts attestation. In practice, companies keep up to date a ledger, a ledger, an inventory report and establish annually documents which are necessary for the financial analysis (balance sheet, profit and loss account, annexes).
Professional accountancy bodies
Certification and auditing: All companies as well as subsidiaries of foreign company have to seek an auditor to lead an annual audit of the financial health of the company. This auditor must have the chartered accountant's certification and assure the accuracy of the published account information. When they sign the financial status, they guarantee to be aware of all the required information.
Accounting news