Colombia 3% SEP / Digital Services Tax 2024

Colombian government imposes a SEP / DST on non-residents from 1 January 2024.

Non-resident providers of certain digital services will become liable (Decree No. 2039/2023) to 3% income tax from 1 January 2024. The original proposal was for a 5% tax on gross income from digital services.

The SEP (Significant Economic Presence) / DST (Digital Services Tax) would be charged via 5% corporate income tax charge or via 10% Withholding Tax by customer, payment processor or other. It comes as part of a two-part significant economic presence income tax test  (see below) and may be applied on e-commerce goods, too.

The new tax comes as OECD Pillar 1 discussions falter and more countries look to enforce DST’s instead.

See our DST country implementations tracker

Colombia has introduced VAT on foreign digital services, but enforcement is limited.

The SEP / DST would be charged on turnover from the following services:

• Digital advertising
• Streaming or download media and content
• Sale of user data
• Hosting
• Online e-learning and training
• Other services provided via digital or electronic
• Intermediation platforms
• Digital subscriptions

Significant economic presence (SEP) Nexus tests

Colombia’s significant economic presence for digital services and e-commerce sales of goods. This is based on two Nexus tests:

1. Over 300,000 local customers; and
2. Turnover above US$ 264,000.