Looking to hire in Colombia

Colombia sets clear deadlines for submitting expenses, and late claims may be rejected. Prior year expenses have an earlier cut-off than current year claims.

Expenses incurred inside and outside Colombia follow different documentation rules. Approved expenses within the applicable limits are reimbursed tax-free, but any expense submitted without the required documentation will be treated as taxable. Per diem is not available in Colombia, so employees must claim actual costs with supporting documents under the appropriate expense category.

Internet, cell phone, and coworking space costs related to business travel can be reimbursed without tax when properly documented. For all of these, employees should provide proof of payment that shows when and how much was paid, who provided the service, and what it was for.

Most work-related equipment and office supplies are reimbursed on a non-taxable basis when supported by an electronic or paid invoice and, where applicable, a bank statement showing the transaction. These documents must clearly show the date, amount, merchant or service provider, a brief description of the item or service, and in many cases the employee’s name. Software subscriptions without documentation are treated differently and become taxable.

Business travel expenses such as flights, accommodation, visas, local transport, and mileage are generally reimbursed tax-free when backed by appropriate invoices or receipts. Supporting documents should show the date, amount, and usually the merchant or service provider, with a description of the service and the employee’s name where required. Mileage claims rely on a screenshot from an app showing the distance traveled.

Meals for employees, meals with business partners or clients, and groceries purchased for business purposes can all be reimbursed on a non-taxable basis. Employees should submit an electronic or paid invoice, receipt, or bank transaction record that at least shows the date and amount.

Training, courses, and books that are work-related are reimbursed tax-free when supported by detailed invoices and, where needed, bank transaction records that identify the employee and the nature of the purchase. Promotional items without documentation are not treated as regular expenses and will instead be classified as a taxable allowance.

Employers may also choose to provide a range of discretionary allowances, such as wellness or insurance-related benefits. These are optional, can be offered to selected employees, and are treated as taxable income when paid.