According to DIAN | Income Taxes That Should Not Be Included in Income Tax Returns | Economy

The income tax declaration is a tax procedure that raises many doubts among Colombians, even though it has been implemented throughout the country for many years as a mechanism for the National Tax and Customs Directorate (Dian) to know who has to pay taxes, contribute to your profits, and and the impact of income on economic growth and the development of national plans.

Withholding tax from source, income, deductible amounts or deductions; these are some of the terms that cause confusion among citizens, who in many cases prefer to use accountants to perform this requirement. It is worth noting that the last tax reform changes were made by Former minister José Antonio Ocampo added some complexity to the process.

Also read: They asked Congress to return the PGN 2025 project to the government so that it can be revised.

Another factor that raises doubts is related to reported income and unreported income, since there are exemptions and each taxpayer is a case that must be studied individually; always remember that ignorance of the rules is not an excuse for non-compliance or for incorrectly filling out the income tax return, and these mistakes can become very expensive penalties if not corrected in time.

What was declared?

According to BBVA Research and consulting firm Russell Bedford Columbia, When filing income tax returns, Dian includes the requirements and conditions in a guide, which is updated every year based on new developments and is available on the tax authority’s website.

Income tax return.

stock

In addition, the agency specifies which requirements the declarant must meet and if only one of them is met, the document must be submitted. For employees, natural persons and non-liquid property, the amount is calculated based on the tax value unit (UVT). From this, the following amounts are determined:

– People with higher total assets COP 190,854,000 as of December 31, 2023.

– Gross income equal or higher It will increase to $59,377,000 COP in 2023.

– Premium credit card payment It will increase to COP$59,377,000 in 2023.

More news: It’s official: US will cut interest rates in September

– Higher purchases and consumption In 2023 it will reach 59,377,000 COP USD.

– a person making a bank deposit, Deposits or financial investments with a cumulative total value exceeding COP 59,377,000 in 2023.

– Personnel responsible for sales tax – VAT At the end of the 2023 tax year.

“Colombians have until October 24 next year to submit their declarations This is a tax that consists in paying a certain percentage of the income of a legal or natural person in one year. In 2024, the income earned in the previous year, that is, in 2023, will be declared. “These experts said.

Unreported income

Decree No. 1625 of 2016 amending the Single Regulation of the Tax Administration specifies which donations should not be declared in income tax. Among them, donations to the Construction Promotion Savings Account (AFC) stand out, as long as they do not exceed 3,800 UVT, equivalent to 161,165,600 USD. This tax benefit is intended to encourage housing investment and allow taxpayers to save effectively.

Income Tax Return

stock

In addition, unemployment benefits and interest are also exempt. The statement states that as long as the worker’s wages in the last six months do not exceed 350 UVT, or $14,844,200. This protects low-income workers, ensures that severance pay, an important employment right, is not affected by additional taxation, and maintains its savings and security function.

Workers’ work-related injuries, sickness, maternity protection and funeral expenses are also not deductible. Similarly, retirement pensions, disability pensions, old-age pensions, survivors’ pensions and occupational risk pensions were tax-free until 1997. From 1998, only those whose monthly payments exceeded UVT 1,000 ($42,412,000) were taxed, thus protecting lower-income pensioners.

up to date: How will diesel prices affect inflation data? Here’s what Minhacienda says

Other benefits, such as insurance or death compensation for active and retired military and police force members and social benefits, are also exempt from tax. Similarly, there are specific exemptions for agency fees for magistrates, prosecutors, judicial lawyers, judges, presidents of public universities and professors, ranging from 25% to 50% of the salary. Reduce the tax burden of these civil servants depending on their positions.