Colombian government has proposed introducing a SEP / DST on non-residents from 1 January 2023.
A Bill has now gone to Congress for review. 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
- Online e-learning and training
- Other services provided via digital or electronic
- Intermediation platforms
- Digital subscriptions
Significant economic presence (SEP) Nexus tests
Colombia is proposing a significant economic presence for digital services and e-commerce sales of goods. This is based on two Nexus tests:
- Over 300,000 local customers; and
- Turnover above US$ 264,000.
Americas Digital Services Taxes (DST)
|Country||Status||Rate||Annual sales threshold||Scope|
|In-country income||Global income|
|Argentina||Dec 2020||5%, 10%, 15%||Online gambling|
|Brazil - 1||Proposed||1-5%||BRL 100m||BRL 3bn||Advertising; user data; interfaces;|
|Brazil - 2||Proposed||3% on COFINS||BRL 78m||$240m||Advertising; platform services for selling goods and services|
|Brazil - 3||Proposed||3%||BRL 4.5bn||Advertising; platform interaction services; data|
|Brazil - 4||Proposed||3% - 10%||BRL 100m||Media; apps; gaming; gambling (10%); software|
|Brazil - 5||Proposed||3%||Advertising; user data; payment platforms; media|
|Canada||Jan 2024||3%||CAD 20m||€750m||Advertising, online marketplaces, social media and the sale/licensing of user data.|
|Colombia||2023||5%||US$ 264k||-||Advertising; streaming or download media; user data; e-learning - Significant Economic Presence test|
|Costa Rica||Nov 2019||Tourist accommodation rentals|
|Paraguay||Jan 2021||4.5%||Non-resident: media; gaming; data processing; advertising; gambling; software|
|Uruguay||Jan 2018||12%||Digital services Non-residents|