2020 Wealth Tax: Deadlines for payment approaching

Decree 401 of 2020 established the deadlines in which the payment of the wealth tax corresponding to 2020 must be made.

The foregoing, in accordance with the provisions of Article 292-2 of the Tax Statute, as amended by Article 43 of Law 2010 of 2019.

As from the amendments made to article 292-2 of the Tax Statute -ET- through article 43 of Law 2010 of 2019, the National Government took back the wealth tax initially created with article 35 of Law 1943 of 2018, with which the previously known wealth tax (created as from article 1 of Law 1739 of 2014 for the years 2015 to 2018) was revived.

Said tax, in force for the years 2020 and 2021, will be payable by individuals and inheritance taxpayers of the wealth tax and substitute regimes such as the simple taxation regime, as well as by individuals, nationals or foreigners who do not have residence in the country, with respect to their possessed wealth, and the others mentioned in paragraphs 1 to 5 of article 292-1 of the ET.

Presentation and payment of wealth tax by 2020

“The payment of the first installment corresponding to the equity tax for 2020 must be made between May 12 and 26 of the current year, according to the last digit of the NIT”.

Thus, through Article 10 of Decree 401 of 2020, the Ministry of Finance added Article 1.6.1.13.2.53 to Decree 1625 of 2016 to indicate that the payment of the first installment corresponding to the wealth tax for 2020 shall be made no later than May 12 and 26 of the current year, attending the last digit of the NIT registered in the declarant’s RUT, without taking into account the verification digit.

The filing of the return -form 420- and the payment of the second installment must be made between September 28 and October 9, 2020 according to the last digit of the NIT.

“the value of the first installment must correspond to 50% of the wealth tax rate calculated on the liquid assets owned as of January 1, 2020”.

Let us recall that the value of the first installment must correspond to 50% of the wealth tax rate calculated on the liquid assets owned as of January 1, 2020, without taking into account the possession of omitted assets or nonexistent liabilities as of the same date. The payment must be made by means of an official tax payment receipt -form 490-. However, it is necessary to consider that, to the determined net worth, the provisions of paragraphs 1 and 2 and paragraphs 1 and 3 of article 295-2 of the ET shall be applicable.

The payment corresponding to the second installment must correspond to the value of the declared net worth tax minus the amount paid in the first installment. For further information on this subject, we invite you to consult our editorial Wealth tax 2020: in May the first installment will be paid and the declaration will be in October.

At this point it is important to highlight that, to date, the Dian has not yet prescribed the new form 420 to be used in the filing of the wealth tax return. However, since only form 490 must be filed in May with the payment corresponding to the first installment, it is expected that this form will be prescribed before September 28, 2020, date on which the deadlines for filing the respective return begin.

Extemporaneous filing and payment of wealth tax for 2019

By means of Concept 000029 of January 14, 2020, the Dian made a pronouncement regarding those responsible for the wealth tax for 2019. Thus, those who were obliged to pay and declare this tax for 2019, in accordance with the provisions of Law 1943 of 2018, were obliged to comply with this requirement, regardless of the declaration of unenforceability of such law.

Thus, the Dian alludes to the consolidated legal situations taken into account by the Constitutional Court in Ruling C-481, where what was obtained by the person, under the protection of the validity of the previous regulation, cannot be modified by the new regulation, since the taxpayer’s conduct was adapted to the regulation in force for the respective period.

“those who did not declare or pay the wealth tax for 2019, may file the return extemporaneously, liquidating the corresponding tax, penalties and interest on arrears”.

In this sense, the taxpayers responsible for the wealth tax for 2019, in accordance with Law 1943 of 2018, were under the duty to comply with such obligation, regardless of the declaration of unenforceability of the Financing Law in question, given that it is a consolidated legal situation, and that at the time it was adapted to the rules in force for 2019. Therefore, those who did not declare or pay the wealth tax for 2019, may file the return extemporaneously, liquidating the corresponding tax, penalties and interest on arrears. The foregoing, without prejudice to the power of audit actions by the Dian.

On the other hand, remember that from Actualícese we have prepared a complete analysis of Law 2010 of 2019, where you can learn about the main changes of the tax reform, on issues such as VAT, social security, wealth tax, simple regime, among others. Consult it in Law 2010 of 2019: 360 analysis of the new tax reform.

Source: Actualícese