GUIDE FOR EXPORTING SERVICES FROM COLOMBIA

GUIDE FOR EXPORTING SERVICES FROM COLOMBIA

1. 1) It´s necessary identify your service supply mode

   • The first thing you should do is to understand the essential elements if u¡international trade in services.
     • The way a services is exported is characterized by the "element".
       • That is transferred to the other country, either as a provider (exporter)
         • of a services is the mode 3 and 4
           • a consumer of a service is the mode 2
             • and finally the service itself mode 1
   • MODE 1 (CROSS-BORDER SUPPLY
     • Supply of services
       • Legal entity or natural person
       • Consumer in A
       • MODE 2 (CONSUMPTION ABROAD)
         • The consumer crosses the border to access the services
           • Consumer in A
           • Consumer of A
             • Provision of services
               • Legal entity or natural person
           • MODE 3 ( commercial presence)
             • Consumer in A
               • Supply of services
                 • Commercial presence
                   • Estableces a commercial presence in member A
                     • Legal entity
                   • Contracted directly by an established foreign company
                   • Worker sent by A company from B
                     • Natural person
                       • Legal entity
                   • MODE 4 (MOVEMENT OF NATURAL PERSONS)
                     • Consumer in A
                       • Supply of services
                         • Natural person
                           • Worker sent by a company fromB
                             • Legal entity
                           • Independent contractor from B travels to A
                             • Natural person

2. 2) Evaluate whether your company is ready to export

   • Research and select the market that you wish to export into, identify the characteristics and preferences of consumers in your target country of region
     • Design a business plan for your exports
     • Determine the best methods for taking the services to you target market
     • It´s necessary consult to ProColombia

3. 3) Register as an exporter

   • Go to the offices of the national tax and costume administration or Supersede and request registration as an exporter of services in the unique taxpayer registry (RUT)
     • You should specify the mode of supply and services to be exported based on the Central Product Classification (CPC)

4. 4) Identify the relevant international agreements for your export

   • Trade agreements or free trade agreements (FTAs)
     • FTAs seek to establish a clear and transparent regulatory framework for promoting development and increasing the supply of services. Among the most relevant commitments on matters of services
       • The liberalization or improved access to markets for certain services sectors
       • Prohibition of discrimination between services and providers of domestic and foreign services (NATIONAL TREATMENT)
       • Mechanisms for the settlement of controversies through which colombia can ensure compliance with commitments acquired in trade agreements
   • Double taxation agreements (DTAs)
     • These treaties contain rules for preventing double taxation with respect to the direct taxes

5. 5) Identify the applicable regulations in the destination country for your exports

   • Form mode 1; take into account the regulations regarding withholding taxes at the territory where the services are provided
     • For mode 4; take into account the applicable regulations

6. 6) Income TAX

   • DISCOUNT FOR TAXES PAID ABROAD
     • If you are an exporter of services with fiscal residence in Colombia
       • You are subject to the income tax and other complementary taxes with respect to your income and ocasional earnings from domestic and foreign sources