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A Spanish transport company asks whether a 14% withholding tax applied by a Colombian company is valid and whether it can claim a deduction. The DGT responds that, under the double taxation treaty, if no permanent establishment exists in Colombia, taxation there does not apply and thus no deduction is possible.
Companies must assess whether they have a permanent establishment in Colombia to determine tax liability and eligibility for deductions under the double taxation treaty.
The tax team reviews your specific situation.
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