Colombia: Implemented Colombian Digital Services Tax (Law 2277 of 13 December 2022)

On 1 January 2024, the Colombian tax reform introducing the application of a Digital Services Tax came into effect. In particular, new Article 20.3 provides that foreign digital services without establishment in the Colombian territory but with a significant economic presence, are subject to either a 5% corporate income tax rate or a 10% withholding tax rate. The following digital services are explicitly covered by the law: online advertising services, digital content services, streaming services, sale of user data, intermediation platforms, digital subscriptions, data management, search engine services, online education services, hosting services, any digital market services, and any other digital services addressed to local users.