Colombia, situated in the northwest of South America, is the only country in this continent with both a Pacific and Caribbean coastline. The capital Bogotá is largest city in Colombia. It has a diverse cultural heritage influenced by the Spanish, Africans, Middle East, and Europeans, which has resulted in the development of very strong regional identities.
Colombia, with its imposing landscape, is rich in minerals, including natural gas, petroleum, coal, nickel, gold, platinum, and cooper. The market price of their major crop, coffee, can strongly affect Colombia’s economic health. Further sources of income are oil and gas mining, agricultural products, machinery, chemicals, banking/financial and IT services and the automotive industry. With its broad range of industries, Colombia is becoming more and more popular for contractors and freelancers.
Contracting in Latin America is not a simple task and has many on-costs for employers. Most in country tax laws do not recognise contractors per se, hence contract workers may need to be remunerated as employees, taxes withheld and paid to various city, state and federal governments, and reserve funds held for other entitlements until end of contract. Please contact CXC Global for professional advice on the specific legislation applying in the country in order to facilitate contractors and foreign nationals working in Colombia. Forward planning is of the essence to optimize costs. Colombia has entered into Double Taxation Treaties with other countries.
For foreign national contract workers, contracting in Colombia, it would be wise to consult with CXC Global on the best way to structure, and how best to balance your taxation.
With our extensive experience and expertise in contractor management, and assisting organisations with their contingent workforce, CXC Global has the resources and solutions to manage the administration process associated with contracting in Colombia, facilitating accounting services and administration, local tax calculations, social security registration, tax balancing and preparation of personal income tax return at the end of the tax year.