In Colombia, overtime and premium pay are primarily governed by the Substantive Labor Code (CST), as amended by recent regulations such as Law 2101 of 2021 (gradual reduction of the working week) and Law 2466 of 2025 (Labor Reform).
What is the withholding tax recalculation?
One of the rights of workers in Colombia who have been employed by an organization is the payment of the service bonus, which is the employer’s responsibility as part of the economic and social benefits derived from the employee’s work.
The work uniform allowance is a mandatory labor benefit that employers in Colombia are required to provide to certain employees, in accordance with current labor law.
These are tax benefits that reduce the taxable base used to calculate the income tax withholding applied to employment income on a monthly basis. The maximum reduction of the taxable base allowed is 40%, considering all applicable deductions by default, plus the 25% exempt income from withholding at source.
The proper preservation and safekeeping of accounting documents is fundamental to ensuring traceability and regulatory compliance for organizations. This newsletter presents best practices for implementing effective accounting document management, providing practical and concrete information.
Organizations frequently face challenges in determining and accounting for internally generated intangibles, as they must be recognized if and only if certain criteria are met.
The recent labor reform in Colombia, Law 2466 of 2025, introduced significant changes regarding severance pay and interest on severance pay.
For January and February, employers must prepare to cover their employees' severance payments and severance interest. Therefore, companies should be aware of the following information:
As we approach the end of the fiscal and accounting year, it is the ideal time to properly plan and design the year-end 2025. This is why in this newsletter we will analyze the most relevant accounting and tax aspects as well as the main developments for the end of the year, providing practical and complete information.
Companies with fifteen (15) or more employees are legally required to hire a minimum number of apprentices from the National Learning Service (SENA) or authorized institutions, so that they can gain practical experience and strengthen their technical and technological training in Colombia. Companies must determine this number every six months, which is calculated as a percentage of their workforce,...
The implementation of the electronic invoicing system in Colombia has been framed within the compliance of formal obligations before the National Tax and Customs Office - DIAN.
Among the range of benefits that companies can give to their employees are bonuses, either for yields or for any other concept; however, these bonuses increase the equity of the employees and therefore are part of the payroll and calculation of withholding tax and social security, if applicable.
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