How is Tax Calculated in Colombia?
In Colombia, income tax is calculated using the Unidad de Valor Tributario (UVT), a reference value established by DIAN to determine the tax amount. Below is a general overview of tax deductions in Colombia based on income brackets determined by the UVT:
Important Notes:
- 1 UVT is approximately COP 47.065 (this value is updated annually according to the fiscal year).
- The tax system is progressive, meaning the tax rates increase as income rises.
- This breakdown serves as a general reference; exact tax amounts depend on individual circumstances and should be confirmed with a tax professional or DIAN.
UVT Update: The UVT value is adjusted annually, so the exact amounts in Colombian pesos (COP) may vary each year. This is currently for 2024.
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