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qb Books & Payroll in COP

S.A.S registration, payroll, and employee benefits for business owners in Colombia


If you are starting a SAS here in Colombia as an expat, there may be uncertainty about different processes and procedures. Whether it is payroll processing, the receptions of international wire transfers, or other business practices unique to Colombia, USATax.co can be your partner to support you through these processes.

Payroll and Benefits in Colombia

The Colombian payroll system is anything but straightforward. It consists of many different social support programs, as well as deductions and withholdings you have to make on behalf of your employees.  

When you make a payment to your employees, you have to start with their base salary. Employees are entitled to an additional salary payment each year called a Prima.

expert accountants with Self Employment Tax and Income Tax in colombia

This is divided into 2 parts and payable in June and December. Therefore if a base salary is 2,000,000 COP they will receive 3,000,000 in June and December.

Like in the United States, there are progressive tax brackets in Colombia. Employers will need to withhold monthly amounts of their employees in a process called “retention en la fuente” which is a prepayment of the employees’ annual income tax.

Additional benefits that need to be paid on behalf of the employee are a contribution to the national help system, EPS, as well as a contribution to the pension fund on behalf of the employee.

qb Bookkeeping

In Colombia, there are many processes that need to be managed on a monthly such as retención en la fuente, or certain IVA payments. USATax.co can be your year-round partner to offer monthly bookkeeping services in addition to annual tax reporting.

Here at USAtax.co we have experience in assisting our clients with these key SAS requirements and more. Book an appointment today by emailing paula@usatax.co to help you get started on your SAS business requirements.

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