Working with an experienced corporate accounting firm in Colombia will help you maximize your company’s chances of success by assuring its good financial standing, meeting all local accounting requirements, and adhering to all relevant norms and regulations.
If you are doing business in the South American nation, or considering market entry, finding a trusted corporate accounting firm to guarantee your tax compliance in Colombia will be essential.
Colombia is Latin America’s fourth-largest economy, with a gross domestic product (GDP-PPP) of $783 billion and a gross national income (GNI) of $15,150 per capita in 2019. The country has extensive free trade agreements in place, providing preferential access to more than 60 key markets in the Americas and Europe. The South American country is also a founder member of the Pacific Alliance, a regional economic integration initiative that also includes Chile, Mexico, and Peru.
Colombia is one of the primary recipients of foreign direct investment (FDI) in the region, which rose from $11.5 billion in 2018 to $14.3 billion in 2019. Petroleum is by far Colombia’s largest export commodity, followed by coffee, precious minerals, plastics, and cut flowers. Meanwhile, the South American nation has emerged as a strategic regional hub for the supply of goods and services, and is an outsourcing hub in the Americas.
In April 2020, the country officially became the 37th member of the Organisation for Economic Co-operation and Development (OECD), after introducing reforms to meet OECD trading standards.
Read on to understand more about the advantages of working with a reliable corporate accounting firm in Colombia, or you could just go ahead and contact us now.
Corporate accounting firm in Colombia: what should you expect?
A corporate accounting firm in Colombia will make sure your company’s financial operations remain in full compliance with local tax regulations by managing all key financial responsibilities including tax planning, tax calculation, tax payment, and preparations of corporate tax returns. Such a firm will also develop year-end financial business reports and will represent your company’s interests in case of information requests or audits from Colombia’s tax authority, the Directorate of National Taxes and Customs (DIAN).
In addition, a good corporate accounting firm in Colombia will also be able to offer specialized accounting advice and a range of customized services to meet requirements specific to your business or the sector you operate in.
Importance of choosing the right corporate accounting firm in Colombia
Some of the main benefits of working with a well-regarded corporate accounting firm in Colombia include:
Profitability: engaging with an accounting firm will ensure your company’s taxes are calculated and paid accurately, allowing you to save valuable time and avoid unnecessary penalty fees.
Business efficiency: A corporate accounting firm in Colombia will be in charge of managing the taxes, benefits, and salary increases of all employees of your company, contributing to internal efficiency and employee satisfaction.
Access to the latest accounting software: an accounting firm will be able to use the latest accounting software and improve financial processes within your company, providing specialist advice to create a business plan that meets your commercial needs and evaluate financial projections.
Accounting counseling: With extensive knowledge of the local market, a corporate accounting firm can help you make important decisions related to your company’s accounting compliance and financial operations.
Understand the main taxes in Colombia
Some of the main taxes that a corporate accounting firm in Colombia will be managing, but that you should be aware of, include:
Valued added tax (VAT): Colombia has a standard 19% VAT rate, with a lowered rate for staple foods, health services, and insurance.
Income tax: all local or foreign companies are subject to the payment of this tax at a rate of 33% of their annual income.
Wealth tax: this tax applies to natural persons who have properties worth $1.5 million or more. It is rated at 0.3% of the property’s value and is paid annually.
Stamp tax: stamp tax is related to the amount levied on the expediting processes for official documents and contracts.
Biz Latin Hub can be your corporate accounting firm in Colombia
At Biz Latin Hub, we offer a full suite of customized back-office services, including high-quality accounting and taxation services. Our team of multilingual legal and accounting specialists based in Colombia is equipped to assist you with all types of financial management and compliance.
Contact us now for more information on how we can help you enter the Colombian market.
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