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The Colombian SEP is a new law that applies from January 1, 2024, aimed at taxing foreign businesses and individuals who regularly sell goods or digital services to Colombian customers, even if they don’t have a physical office in Colombia.
You’ll have to pay taxes in Colombia if:
Yes. Zoom Communications Inc. does comply with the conditions set under Colombia law to be subject to the SEP regime for the period commencing January 1, 2024.
Nonresident individuals and entities subject to the SEP regime in Colombia may choose how to comply with Colombian tax obligations. SEP rules provide two options for paying the tax: (i) via income tax withholdings (“WHT”) or (ii) registering in Colombia and filing an income tax return.
Nonresidents who choose the income tax withholding system are not obliged to register in Colombia. Colombian customers or users of goods or digital services shall apply a WHT of 10% upon payment or accrual. Those nonresidents who choose the self-reporting option are not subject to the 10% WHT.
Nonresidents who chose the registration and self-reporting option must provide their Unique Tax Registry to Colombian users and customers. This is to avoid any undue WHT.
Zoom has decided to apply the WHT mechanism and not the self-reporting option. Thus, Zoom is not registered in Colombia under the SEP regime.
Due to Zoom's decision to apply the WHT mechanism, customers who qualify as income tax withholding agents under Colombian law shall pay to the Colombian tax authorities an amount equivalent to 10% of the fee charged by Zoom.
Unless stated otherwise, under Zoom's Terms of Service, payments made to Zoom should be free and clear of any deductions and tax withholdings under Section 13.4. See item 13.4 below:
"13.4 Payment of Taxes and Withholding. You will pay Zoom, and you are solely responsible for, any applicable Taxes and Fees. All payments made by you to us under this Agreement will be made free and clear of any deduction or withholding Taxes and Fees, as may be required by applicable Law. If any such deduction or withholding Taxes and Fees (including domestic or cross-border withholding taxes) are required on any payment, you will pay such additional amounts as necessary, such that the net amount received by us is equal to the amount then due and payable under this Agreement. We will provide you with such tax forms as reasonably requested in order to reduce or eliminate the amount of any withholding or deduction for taxes in respect of payments made under this Agreement. You also agree to provide Zoom with withholding tax certificates, upon Zoom’s request, to the extent a withholding certificate is required to be sent to Zoom under applicable Law, and you agree that Zoom may provide your withholding tax certificate to the appropriate taxing authority without further notice to you. "
Zoom can provide a certification confirming it is not registered for SEP purposes and has elected the self-reporting option. Click here:
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Note: This FAQ may be presented to you in more than one language. The English version controls in case of any potential deviation in interpretation.