With the beginning of the second semester of the year 2023, both legal and natural persons must comply with the tax obligations established by Colombian law.
Vivian Arciniegas, BDO Tax partner in Colombia, shares important elements to take into account regarding the tax dates of the second semester.
For natural persons, the obligations are concentrated in the fulfillment of the income tax, the declaration of assets abroad and the second installment to the patrimony. These maturities extend between August 9 and October 19 of this year.
“For people with property and vehicles in Bogotá, the last date for payment of property tax without discount is next July 14 and for vehicles, July 28, 2023,” he says.
Regarding the taxes associated with income, such as the income statement and the declaration of assets abroad, Arciniegas ensures that a taxpayer’s income is subject to three taxes: on income, occasional earnings and dividends, if income was received for this concept.
assets abroad
Regarding people residing in Colombia who have one or more assets located abroad, the expert assures that “the declaration of assets abroad is an informative declaration regarding the assets that are held outside of Colombian territory and not generates no tax imposition.
According to the established tax calendar, Colombians must comply with the second installment of the wealth tax, also known as wealth tax, which was introduced as a permanent tax in the latest Tax Reform Law 2277, enacted on December 13, 2022. .
“This is a tax that taxes the net worth (assets minus liabilities) of resident and non-resident natural persons, illiquid successions and foreign companies with assets in Colombia other than shares, accounts receivable or portfolio investments”, explains Arciniegas.
In the same order, the tax is levied on the liquid assets of taxpayers -when these exceed 72,000 UVT ($3,053,664,000)- with a progressive rate of 0.5%, 1% and 1.5% for liquid assets greater than 239,000 UVT ($10,136 .468.000). This last range will be in force only for the years 2023, 2024, 2025 and 2026. As of the year 2027, liquid assets greater than 122,000 UVT ($5,174,264,000) will be taxed at the rate of 1%.
Regarding the measurement to determine the taxable base of the obligation, Arciniegas states that “individuals may deduct the first 12,000 UVT ($508,944,000) of the net equity value of their house or apartment.”
Sanction
The firm BDO in Colombia reminds that in case of not presenting the declaration, being obliged to do so, taxpayers will be exposed to a penalty for late payment that is equivalent to 5% of the tax to be paid for each month or fraction of a month of delay.
If the taxpayer decides to be omitted, he could be subject to a summons to declare, in which case the penalty will increase to 10% for each calendar month or fraction of a month of delay.
On the other hand, natural persons who must declare income for the taxable year 2022 for the first time may do so as of August 9 of the current year, taking into account the last two digits of the tax identification number (NIT), with respect to the year above, they will be obligated if the following amounts are met:
– Gross equity that on the last day of 2022 exceeds 4,500 UVT ($171,018,000).
– Gross income of the taxable year greater than 1,400 UVT ($53,206,000).
– Credit card purchases over 1,400 UVT ($53,206,000).
– Purchases and consumption over 1,400 UVT ($53,206,000)
– Accumulated bank deposits greater than 1,400 UVT ($53,206,000).