Due to the fact that each country has fiscal sovereignty, which is why it can establish the taxes that it considers necessary under the legal and regulatory framework, citizens and companies often find themselves with the figure known as double taxation, which is the imposition of more than one tax on the same income or income, in which a natural or legal person with income in several territories can be found.
(Colombia reaches agreement with Luxembourg for double taxation).
Faced with this panorama, investments may be slowed down. Therefore, the National Government has signed a series of agreements with several countries and is working with others to eliminate this figure.
The most recent agreement reached was achieved with Luxembourg, within the framework of the visit of President Iván Duque, on a tour of Europe, in which he will also be in France, Belgium and the Netherlands.
(Green light to agreement that avoids double taxation with France).
According to the Government, With the elimination of double taxation, it will be possible to promote investments for companies and enterprises.
At the end of last year, the Constitutional Court declared the agreement that avoids double taxation with France, which was approved by the Congress of the Republic in 2020, enforceable, which will allow its execution.
Colombia has signed similar agreements with Japan, Italy, Peru, Ecuador, Bolivia, India, Portugal, Korea, Mexico, Switzerland, Chile, Spain and Canada, of which some are still in force.
In addition to eliminating double titles, this tax agreement aims to prevent tax evasion and avoidance, with respect to income and wealth taxes.
(Colombia and Japan reach an agreement to eliminate double taxation).
For the Dian, the elimination of this figure is a fundamental instrument to remove the obstacles created to trade, investment and exchange in general between countries. It is also a key instrument of international cooperation between tax authorities.
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