Implications of the increase in the UVT for 2023

According to article 868 of the Tax Statute, the tax value unit (UVT) is the measure of value that allows adjusting the values contained in the provisions related to taxes and obligations administered by the Dian.

Said value is readjusted annually according to the variation of the consumer price index -CPI- for average income, certified by the DANE in the period between October 1st of the previous taxable year and the same date of the current taxable year.

Now, on October 20, 2022, by means of a draft resolution, the Dian announced the value of the UVT that would govern during the taxable year 2023, which would be $42,412, 11.60% higher than the UVT of 2022 ($38,004).

UVT would increase the value of the minimum sanction

According to the provisions of Article 639 of the ET, the minimum value of any penalty, including reduced penalties, whether it must be liquidated by the person or entity subject to it, or the Dian, will be equivalent to 10 UVT.

Therefore, according to the new value that the UVT would have, for the taxable year 2023 the minimum penalty in tax matters would be $424,000.

Minimum amount to practice withholding at source for purchases and services Pursuant to the provisions of article 1.2.4.4.4.1 of Decree 1625 of 2016 and numeral 78 of the table contained in article 868-1 of the ET, the minimum amounts to practice withholding at source as income for purchases and services are 27 UVT and 4 UVT respectively.

Thus, during the year 2023, withholding at source will be made on purchases equal to or greater than $1,145,000 (27 UVT) and on the rendering of services equal to or greater than $170,000 (4 UVT).

UVT would increase the income ceiling in order not to be liable for VAT.

According to paragraph 3 of Article 437 of the ET, individuals who, even when performing activities subject to VAT, comply with the requirements set forth therein, among them, that the amount of their total gross income from the taxable activity is less than 3,500 UVT (this amount would become 4,000 UVT for those service providers who derive their income from contracts with the State, see paragraph 5 of Article 437 of the ET), shall not be liable for VAT.

Source: Actualize.

Implicaciones del incremento de la UVT para el 2023