What is the Tax ID in Colombia? How to obtain it?
When it comes to navigating the Colombian tax system, understanding the Tax ID is crucial. This unique identification number plays a significant role in various financial transactions and obligations. In this article, we will delve into the details of the Tax ID in Colombia, its purpose, and how it impacts businesses and individuals alike.

The Significance of a Tax ID
In Colombia, a Tax ID, known as “Número de Identificación Tributaria” or NIT, is the identification number assigned by DIAN, the national tax and customs authority, when a person or company registers in the RUT (Registro Único Tributario). This unique code serves as a key identifier for individuals and businesses within the Colombian tax system. Whether you’re a local entrepreneur, a foreign investor, or a salaried employee, obtaining a Tax ID is essential for complying with tax obligations and conducting financial transactions.
Obtaining a Tax ID in Colombia
A new company does not apply for its NIT separately. When it registers with the Chamber of Commerce, the Chamber also registers it in DIAN’s RUT, and the NIT appears on the RUT and on the company’s certificate of existence and legal representation. The RUT starts as provisional; the company then completes it with DIAN, usually by providing a bank account certificate. Foreign shareholders, directors and legal representatives who need their own RUT can register with their passport.
For Colombian individuals the NIT is their national ID number plus a verification digit. The RUT must be kept up to date, for example when the company changes its address, activities or legal representative.
Uses and Benefits of a Tax ID
Tax ID serves various purposes in Colombia. It is required for filing tax returns, paying taxes, and conducting business transactions. With its NIT, a company can issue electronic invoices (mandatory in Colombia), open a bank account, participate in government tenders, and establish contracts with other entities. Individuals who must file tax returns, issue invoices or act as legal representatives also need to be registered in the RUT. It is also an essential requirement for foreigners looking to invest or establish a business in Colombia.
In conclusion, the Tax ID in Colombia is a fundamental identifier that holds significant importance for individuals and businesses. Whether you’re a resident or a foreign investor, understanding the role and application of the Tax ID is crucial for complying with tax obligations and conducting financial activities in Colombia.
How a company is set up in Colombia
- Choose the company type. For most foreign founders it is the S.A.S.
- Check that the name is available in the RUES, the national business registry.
- Sign a power of attorney abroad, apostilled and translated into Spanish, so a local representative can act for you.
- Draft the bylaws. An S.A.S. is formed by private document, without a notary.
- Register the company with the Chamber of Commerce of its domicile. The Chamber also registers the company in DIAN’s RUT, which gives it its NIT.
- Bring in the capital through the foreign exchange market and register the foreign investment with the Banco de la República.
- Open a corporate bank account and complete the RUT with DIAN.
- Set up electronic invoicing and register the shareholder and minutes books with the Chamber of Commerce.
Full guide: how to set up a company in Colombia.
Get help from Easyco
Easyco handles company formation, tax, accounting, payroll and legal representation in Colombia. Contact us to discuss your project.
Easyco also provides:
- Appointment of legal representation
- Providing a registered office address
- Handling tax and accounting
- Payroll and employer of record services
- Support with your corporate bank account opening
- Trademark registration
- Recruiting and hiring