Law 2068 of 2020 enacted on December 31st, 2020 by the Colombian Congress, modifies the General Tourism Law concerning certain tax matters, including the following:
- Tourism parafiscal contribution aimed at the promotion, sustainability, and competitiveness of tourism in Colombia.
Taxable event: The provisioning of tourism services by the taxpayers of the corresponding parafiscal contribution.
Taxpayer: Local or foreign individuals and companies with or without residence in Colombia, and local or foreign companies that provide tourism services in Colombia.
Active subject: National Tourism Fund.
Taxable base: The taxable base to calculate the parafiscal contribution will be the amount of the operating income related to the tourism activity, with some exceptions included in article 35 of Law 2068 of 2020. The foregoing is subject to the National Government’s regulation.
Taxable Rate: The rate of the tourism parafiscal contribution will be 2.5 X 1000 regarding the operational income.
The collection and payment of the parafiscal contribution is subject to the National Government’s regulation.
- Certain services rendered in hotels will be subject to an income tax rate of 9%.
- Airplane tickets and related services will be taxed with a VAT rate of 5%. This reduction in the VAT rate will be valid until December 31st, 2022.
- Creates a transitory VAT exemption for hotel and tourism services for residents in Colombia. This exemption will be valid until December 31st, 2021.
- Modifies the consumption tax rate for the selling of food and beverages to 0%. This modification to the consumption tax rate will be valid until December 31st, 2021.
For further information, do not hesitate to contact us.
Author
Camilo Chávez I cchavez@lloredacamacho.com I Tax Law