Colombia tax facts of the day

According to the OECD, only 5 per cent of Colombians pay income tax. Revenue from personal income tax is worth just 1.2 per cent of gross domestic product compared to an OECD average of 8.1 per cent.

Taxes on businesses, on the other hand, are relatively high. The outgoing rightwing government of Iván Duque initially cut the corporate tax rate from 33 to 31 per cent. But when the coronavirus pandemic hit, followed by prolonged street protests against his rule, he was forced to raise it to 35 per cent, its highest level in 15 years and above the Latin American average.

Here is more from the FT.  Note that the president-elect, Petro, actually is planning on cutting taxes on business, though he is proposing a wealth tax on individuals as well.


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