Take the decision to run a company in Colombia carries many responsibilities, fulfill the national, and territorial tax obligations often seem to be somewhat complex, the constant changes in-laws, procedures, and regulations require that your tax advisor must be kept up-to-date by the new rules, but also, you must have excellent skills understanding and interpreting the local law, and especially the one that applies to the specific sector in which your company operates, this combination allows you to reduce the operational risk of your business and avoid costly penalties.
The laws related to taxes in Colombia and Bogota not only have the interest of collection, but there are also multiple benefits contemplated in the law that seek to incentivize and strengthen its greatest source of income, one of the first tasks when establishing a company and an important factor in consideration when hiring an accountant and tax advisor is the task of planning an adequate tax compliance, some of the taxes that apply to the economic activity that is developed or are planned to be developed by the company are identified, in this important work they must be taken into account from the corporate structure, its composition, it or the territories in which it operates, special regulations in which the company may be included, and not least its investment plans, all to designing an action strategy in compliance with the tax obligations, in order to minimize the tax burden by resorting to the benefits and advantages provided by the law, with a view to maximizing profitability in an appropriate manner. As we have seen, unlike a simple tax return, tax planning involves a diagnosis carried out together, in order to create a unique action plan for your business.
Tax Compliance services
Once the tax planning stage is finished, you already have a clear understanding of the tax obligations that apply to your company, so its time to create the accounting policy for the recognition, registration, and control of the taxes that have obliged to comply or collect, finally an individual calendar of the declaration and dates of payment of your taxes obligations are defined.
Below we find information on some of the most common formal obligations that apply in Colombia and Bogota:
It is a tax of the National order unified with occasional earnings, it applies to legal entities, natural persons, and those assimilated, it taxes the profits that may produce an increase in assets and have not been expressly excepted by law.
It is a mechanism for the early collection of taxes, applies for national and municipal taxes, such as income tax, VAT, and industry and commerce. Its base and rate are linked to the nature of the transaction, and to a clear determination of the territoriality in fact generating.
There is an obligation to report a summary, under the standards defined by the control entities of the National, District, or municipal order, the operations carried out with clients, suppliers, employees, or other third parties, which have been carried out during the taxable period.
Its purpose is to carry out crossings of information of taxpayers and those responsible for taxes and guarantee the correct presentation of the returns, identify subjects obliged to present, and pay their formal duties with the State.
The rate will depend on the annual gross income gained and the business activity, ranging between 2.6% and 13.6% on the gross ordinary and extraordinary income accrued during the taxable year.
When the settlements of the tax declarations generate a favor balance, the taxpayer or person in charge of the tax can request the refund or request compensation in the event that he presents obligations with other taxes to the DIAN, thus improving the liquidity of the company, this procedure can be performed in a personal capacity or through a proxy.
These balances in favor are the product of the withholdings practiced by companies, self-withholding, or the higher expenses that the company has with respect to its income in its ordinary line of business.
When the refund request is viable, the documents required by the tax authority are prepared and filed, during this process it is vitally important to collect and deliver the documentation in an appropriate way, which can facilitate future taxation processes by the tax entity, Our team will accompany you in the development of the visit in case the entity does so.