Signing double taxation agreements in Colombia, a way to attract foreign investors.

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With the signing of the double taxation agreement with the Netherlands last February, the total number of agreements signed by Colombia is now 18, including Spain, Chile, Switzerland, Canada, Mexico, Korea, India, Portugal, Czech Republic, United Kingdom, Italy, France and the countries belonging to the Andean Community (Bolivia, Ecuador and Peru). In addition, there are others not yet in force with Japan, United Arab Emirates and Uruguay. Agreements with Ireland and United States of America are contemplated for the future. Currently, the double taxation phenomenon generated by cross-border operations has a direct effect on investors, as they are the ones who are subject to double (sometimes even multiple) taxation obligations, such as income tax and wealth tax. This negatively impacts trade and capital exchange as represent an obstacle for taxpayers, making foreign investment less attractive. The agreement seeks to relieve this high tax burden and, consequently, attract a higher percentage of investors, making trade more viable for both foreign and domestic entrepreneurs to the rest of the world. It is also a way to reduce tax evasion and avoidance.