Colombia's Corporate Income Tax Rate Hits OECD High, Raising Investment Concerns

A recent OECD report places Colombia among the four countries with the highest general corporate income tax rates in the world, with the headline rate at roughly 35%. Analysts warn that such a high levy can undermine the country's competitiveness, prompting firms to consider relocating projects to jurisdictions with lower tax burdens.

Luis Fernando Mejía, former executive director of the think‑tank Fedesarrollo, warned that “Colombia will not be competitive with a 35% income tax.” He argued that reduced investment would translate into fewer jobs, slower economic growth, and a weaker tax base. Mejía and other commentators call for a balanced fiscal approach that secures state revenue while improving legal stability, simplifying tax rules, and offering clearer long‑term planning conditions for investors.