Service providers from abroad that render services to persons or companies located in Colombia are considered liable for VAT as long as the services are taxed with such tax. These service providers are not obliged to issue an invoice. In the following video, our speaker Diego Guevara Madrid, prominent tax expert and leader of tax … Read more
The Colombian government set the minimum wage increase for 2021 at 3.5%, thus reaching $1,014,980 (SMMLV $908,526 + transportation allowance of $106,454). “New minimum wage for 2021. For the first time in the history of Colombia and fulfilling a campaign promise, it will exceed, including the transportation allowance, one million pesos. In total it will … Read more
By means of Resolution 000111 of December 11, 2020, the Special Administrative Unit of the National Tax and Customs Directorate (DIAN), announced the value of the UVT applicable in 2021, which remained at $36,308. Let us remember that the Tax Statute in its article 868 establishes the Tax Value Unit (UVT) as the measure of … Read more
Devaluation is the decrease in the value of the national currency with respect to some foreign currencies. In this publication you will learn about the devaluation of the Colombian peso during the year 2020. In the technical language of macroeconomics it is reiterative to speak of two terms: devaluation and revaluation; such concepts refer to … Read more
Non-compliance with the formal and substantial obligations of taxpayers entails a series of sanctions by the tax administration, with the purpose of complying with numeral 9 of article 95 of the Political Constitution, which establishes that among the obligations of Colombians is to contribute to the financing of the expenses of the State within the … Read more
For Alejandro Chacón, the current VAT rate, which is 19%, should be reduced to 8%. This would not affect tax collection. Representative Alejandro Chacón has made a series of proposals regarding the tax reform. The first one is to replace the VAT with the consumption tax, an idea he had formulated in the debates of … Read more
In Colombia, the tax auditors are required to be those indicated in article 203 of the Code of Commerce and the commercial companies that reach the ceilings of assets and income mentioned in paragraph 2 of article 13 of Law 43 of 1990. See more details below. Commercial companies will have to verify the value … Read more
While President Iván Duque assures that this is not yet the time to present a tax reform, the Minister of Finance thinks otherwise. The tax reform would not be presented during the first quarter of the year. The President of Colombia, Iván Duque, has said that he considers that in the middle of the pandemic … Read more
Goods related to renewable energies went from excluded to exempt from VAT. The Government will authorize micro-companies and companies obliged to keep accounting records to do so in a simplified manner. Virtual tax inspection and virtual administrative inspection visits are included. With the enactment of Law 2069 of 2020 or Entrepreneurship Law, national entrepreneurs have … Read more
The tax penalty regime contemplates different types of penalties for each of the obligations administered by the Dian. On this occasion we address the tax penalties to which withholding agents authorized by law may be exposed. Those individuals or legal entities authorized by law to act as withholding agents must comply with the obligations set … Read more
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