Colombia is the third least tax-competitive country in the OECD
Outside of Europe, unemployment rates remained stable or increased in March 2024. Photo: iStock
TL;DR
- Colombia ranks 36th out of 38 OECD economies in tax competitiveness.
- The Colombian tax system is complex and costly, with a corporate income tax rate of 35% (nearly 11 percentage points above the OECD average).
- The total tax burden for formal companies in Colombia can exceed 80%, including various taxes and contributions.
- Colombia's worldwide tax system, which taxes foreign earnings, puts it at a disadvantage compared to countries with territorial tax systems.
- Estonia leads the index with a competitive tax system that only taxes distributed profits and offers territorial tax benefits.
- France and Italy are the only OECD countries with lower tax competitiveness rankings than Colombia.