The Corporate Income Tax in Colombia: its Effective Rate and its Relationship with Investment
In Colombia it is traditional that discussions about tax reforms indicate that corporate taxation is so burdensome that it drives away the investment and slows down economic growth, which is why preferential tax treatments or tax cuts are promoted. This is, in fact, what is behind the most recent ta...
| Main Authors: | , |
|---|---|
| Format: | Online |
| Language: | spa |
| Published: |
Universidad Pedagógica y Tecnológica de Colombia
2020
|
| Subjects: | |
| Online Access: | https://revistas.uptc.edu.co/index.php/cenes/article/view/10493 |
| _version_ | 1801705963108958208 |
|---|---|
| author | Castañeda Rodríguez, Víctor Mauricio Villabona-Robayo, Jairo Orlando |
| author_facet | Castañeda Rodríguez, Víctor Mauricio Villabona-Robayo, Jairo Orlando |
| author_sort | Castañeda Rodríguez, Víctor Mauricio |
| collection | OJS |
| description | In Colombia it is traditional that discussions about tax reforms indicate that corporate taxation is so burdensome that it drives away the investment and slows down economic growth, which is why preferential tax treatments or tax cuts are promoted. This is, in fact, what is behind the most recent tax reform in Colombia, which was named as the Financing Law in 2018, but this research shows two facts. The first one is that the effective rate of Corporate Income Tax is not as high as it is stressed in Colombia by the media, economic unions and many politicians, for which we take into account tax reporting data provided by the Colombian tax administration office (DIAN) for 2016. The second issue is related to the generally accepted hypothesis that taxation discourages investment, which is denied through a data panel analysis across 109 countries (including Colombia) and the period 2006-2015. |
| format | Online |
| id | oai:oai.revistas.uptc.edu.co:article-10493 |
| institution | Revista Apuntes del Cenes |
| language | spa |
| publishDate | 2020 |
| publisher | Universidad Pedagógica y Tecnológica de Colombia |
| record_format | ojs |
| spelling | oai:oai.revistas.uptc.edu.co:article-104932022-06-17T21:35:37Z The Corporate Income Tax in Colombia: its Effective Rate and its Relationship with Investment El impuesto sobre la renta empresarial en Colombia: su tasa efectiva y su relación con la inversión Castañeda Rodríguez, Víctor Mauricio Villabona-Robayo, Jairo Orlando corporate income tax; investment; foreign direct investment; effective tax rate; financing law; impuesto sobre la renta empresarial; inversión; inversión extranjera directa; tasa efectiva de tributación; Ley de Financiamiento; In Colombia it is traditional that discussions about tax reforms indicate that corporate taxation is so burdensome that it drives away the investment and slows down economic growth, which is why preferential tax treatments or tax cuts are promoted. This is, in fact, what is behind the most recent tax reform in Colombia, which was named as the Financing Law in 2018, but this research shows two facts. The first one is that the effective rate of Corporate Income Tax is not as high as it is stressed in Colombia by the media, economic unions and many politicians, for which we take into account tax reporting data provided by the Colombian tax administration office (DIAN) for 2016. The second issue is related to the generally accepted hypothesis that taxation discourages investment, which is denied through a data panel analysis across 109 countries (including Colombia) and the period 2006-2015. En Colombia es tradicional que cuando se trata de emprender reformas tributarias, se indique también la necesidad de promover la inversión y el crecimiento económico, de modo que se recurre a fórmulas como la reducción de las alícuotas del impuesto sobre la renta empresarial (ISRE) y la creación de beneficios tributarios. Este trabajo revisa los postulados tras la reforma tributaria de 2018 en Colombia, conocida como Ley de Financiamiento, para mostrar, primero, que la tasa efectiva asociada al ISRE no es muy alta, para lo cual se consideran los datos agregados de las declaraciones tributarias de la Dirección de Impuestos y Aduanas Nacionales para el año 2016. En segundo lugar, y a través de un ejercicio econométrico basado en un panel de datos que incluye observaciones para 109 países (dada la insuficiencia de datos para considerar solo a Colombia) durante el periodo 2006-2015, se establece que estadísticamente no hay evidencia de una relación entre impuestos corporativos e inversión. Universidad Pedagógica y Tecnológica de Colombia 2020-08-11 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer reviewed Article application/pdf text/xml https://revistas.uptc.edu.co/index.php/cenes/article/view/10493 10.19053/01203053.v39.n70.2020.10493 Apuntes del Cenes; Vol. 39 No. 70 (2020); 183-205 Apuntes del Cenes; Vol. 39 Núm. 70 (2020); 183-205 2256-5779 0120-3053 spa https://revistas.uptc.edu.co/index.php/cenes/article/view/10493/9839 https://revistas.uptc.edu.co/index.php/cenes/article/view/10493/11571 Copyright (c) 2020 Víctor Mauricio Castañeda Rodríguez, Jairo Orlando Villabona-Robayo http://creativecommons.org/licenses/by-nc-sa/4.0 |
| spellingShingle | corporate income tax; investment; foreign direct investment; effective tax rate; financing law; impuesto sobre la renta empresarial; inversión; inversión extranjera directa; tasa efectiva de tributación; Ley de Financiamiento; Castañeda Rodríguez, Víctor Mauricio Villabona-Robayo, Jairo Orlando The Corporate Income Tax in Colombia: its Effective Rate and its Relationship with Investment |
| title | The Corporate Income Tax in Colombia: its Effective Rate and its Relationship with Investment |
| title_alt | El impuesto sobre la renta empresarial en Colombia: su tasa efectiva y su relación con la inversión |
| title_full | The Corporate Income Tax in Colombia: its Effective Rate and its Relationship with Investment |
| title_fullStr | The Corporate Income Tax in Colombia: its Effective Rate and its Relationship with Investment |
| title_full_unstemmed | The Corporate Income Tax in Colombia: its Effective Rate and its Relationship with Investment |
| title_short | The Corporate Income Tax in Colombia: its Effective Rate and its Relationship with Investment |
| title_sort | corporate income tax in colombia its effective rate and its relationship with investment |
| topic | corporate income tax; investment; foreign direct investment; effective tax rate; financing law; impuesto sobre la renta empresarial; inversión; inversión extranjera directa; tasa efectiva de tributación; Ley de Financiamiento; |
| topic_facet | corporate income tax; investment; foreign direct investment; effective tax rate; financing law; impuesto sobre la renta empresarial; inversión; inversión extranjera directa; tasa efectiva de tributación; Ley de Financiamiento; |
| url | https://revistas.uptc.edu.co/index.php/cenes/article/view/10493 |
| work_keys_str_mv | AT castanedarodriguezvictormauricio thecorporateincometaxincolombiaitseffectiverateanditsrelationshipwithinvestment AT villabonarobayojairoorlando thecorporateincometaxincolombiaitseffectiverateanditsrelationshipwithinvestment AT castanedarodriguezvictormauricio elimpuestosobrelarentaempresarialencolombiasutasaefectivaysurelacionconlainversion AT villabonarobayojairoorlando elimpuestosobrelarentaempresarialencolombiasutasaefectivaysurelacionconlainversion AT castanedarodriguezvictormauricio corporateincometaxincolombiaitseffectiverateanditsrelationshipwithinvestment AT villabonarobayojairoorlando corporateincometaxincolombiaitseffectiverateanditsrelationshipwithinvestment |
