Colombia has signed a tax agreement with the World Bank in an effort to improve tax administration and collection.

The agreement, in effect from August 2013 to August 2015, will encourage tax simplification and reduce the tax burden on corporations. In addition, Colombia will receive technical assistance from international consultants to implement a strategy for reducing the tax burden’s compliance cost. The plan will focus on micro, small and medium-sized businesses.

Last year, the World Bank granted a USD200m loan to Colombia to help improve the predictability and stability of the national budget.