Colombia · Tax and compliance

Tax and compliance in Colombia

By Fredrik Filipsson, cofounder of Business Bank Index
Reviewed by Morten Andersen · Last reviewed 6 February 2026
Snapshot

Colombian tax is administered by the DIAN. As of 6 February 2026, the standard IVA is 19 percent, electronic invoicing through the DIAN is mandatory for taxable businesses, and a four per thousand financial transaction tax known as the GMF generally applies to withdrawals and certain account movements. A municipal ICA tax applies to industrial, commercial, and service activity and varies by municipality. Confirm what applies to your activity with the DIAN or a tax adviser.

Tax authority
DIAN, the national tax and customs authority.
Standard IVA
19 percent, with reduced rates and exemptions for some goods and services.
Electronic invoicing
Mandatory through the DIAN system, with a digital signature.
Account taxes
Four per thousand GMF on covered movements; municipal ICA on activity.
Fees and features as of 6 February 2026Last reviewed 6 February 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

As of 6 February 2026, Colombian business tax is run by the DIAN. The standard IVA is 19 percent, electronic invoicing through the DIAN is mandatory for taxable businesses, and a four per thousand financial transaction tax known as the GMF generally applies to withdrawals and certain account movements. A municipal ICA tax applies to business activity and varies by where you operate. None of this is advice, and the rules and thresholds change, so confirm what applies to your activity with the DIAN or a qualified tax adviser before you act.

How tax touches a business account in Colombia

A business account in Colombia sits inside a tax system built around the RUT and NIT, electronic invoicing, and several taxes that interact with money moving through the account. As of 6 February 2026, the DIAN matches the electronic invoices you issue with what you report, so keeping invoicing and bank records aligned matters. The taxes most likely to affect day to day banking are the IVA you charge and remit, the four per thousand GMF on account movements, and withholding taxes that apply to certain payments.

IVA and electronic invoicing

The standard IVA is 19 percent, with reduced rates and exemptions for some goods and services. As of 6 February 2026, taxable businesses must issue electronic invoices through the DIAN system using a digital signature, and the DIAN provides a suggested IVA return drawn from that invoice data that the taxpayer reviews and remains responsible for. Filing frequency, bimonthly or every four months, depends on revenue, so confirm your schedule with the DIAN.

The four per thousand GMF and ICA

The four per thousand, the GMF or Gravamen a los Movimientos Financieros, is a 0.4 percent tax that generally applies to withdrawals and certain movements from bank accounts, with some exemptions available within limits. Separately, the ICA, Impuesto de Industria y Comercio, is a municipal tax on industrial, commercial, and service activity whose rate is set locally. As of 6 February 2026, both can affect your effective costs, so confirm how they apply to your account and your municipality.

How to stay compliant

  1. Keep the RUT current with the DIAN and issue electronic invoices for taxable transactions with a valid digital signature.
  2. Track the IVA you charge and remit, and confirm your filing frequency with the DIAN based on your revenue.
  3. Account for the four per thousand GMF on covered movements and the municipal ICA where you operate, and verify the current rules with a tax adviser.
We do not list a business account that is confirmed available to business customers in Colombia through an affiliate as of 6 February 2026. Colombian banks and digital providers serve business customers locally. Compare the local options directly, see the related guides below for markets where listed providers are available, and verify any option with the provider and the DIAN before applying.

Questions about tax and compliance in Colombia

What is the IVA rate in Colombia?
As of 6 February 2026, the standard IVA, the Colombian value added tax, is 19 percent, with reduced rates and exemptions for certain goods and services. The filing frequency depends on your revenue. Confirm the rate that applies to your activity and your filing schedule with the DIAN or a tax adviser.
Is electronic invoicing mandatory for businesses in Colombia?
Yes. As of 6 February 2026, businesses that carry out taxable transactions must issue electronic invoices through the DIAN system, which requires a digital signature and registration in the DIAN online services. Failure to issue them correctly can lead to penalties and the loss of tax deductions. Confirm your obligations with the DIAN.
What is the four per thousand tax in Colombia?
The four per thousand, known as the GMF or Gravamen a los Movimientos Financieros, is a financial transaction tax of 0.4 percent that generally applies to withdrawals and certain movements from bank accounts. As of 6 February 2026, some accounts and transactions can be exempt within limits. Confirm how it applies to your account with the bank and the DIAN.
What is the ICA tax in Colombia?
The ICA, Impuesto de Industria y Comercio, is a municipal tax on industrial, commercial, and service activity. The rate and the filing rules are set by each municipality, so they vary by where you operate. As of 6 February 2026, confirm the ICA that applies in your municipality with the local authority or a tax adviser.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 6 February 2026. Confirm current terms with the provider before applying.

Related guides

More business banking guides for Colombia