Exogenous information 2019: deadlines for its submission are stacked up

By means of Resolution 011004 of October 29, 2018, the Dian indicated the content and technical characteristics for the presentation of the exogenous information report for the taxable year 2019.

Taking into account the emergency due to the spread of COVID-19, the Dian, through Resolution 000027 of 2020, extended the deadlines to comply with this obligation.

The exogenous information for taxable year 2019 was requested through Resolution 011004 of October 2018, with which it was defined who would be obliged to comply with this requirement referred to in articles 623 to 631-3 of the Tax Statute -ET-, article 2.8.4.4.3.1.2 of the Single Decree 1068 of May 2015 and article 58 of Law 863 of 2003.

However, it is important to note that this regulation was enacted prior to the approval of Law 1943 of 2018, which is why it did not contemplate any of the tax provisions for the taxable year 2019. Consequently, on January 31, 2020 the Dian issued Resolution 000008, thus making a total of 25 adjustments to Resolution 011004 mentioned above.

Obliged to report for the taxable year 2019

In accordance with the provisions of article 1 of Resolution 011104 of 2018, the following are indicated as obligated to submit the exogenous information report for the taxable year 2019:

1.public or private entities that enter into cooperation and technical assistance agreements for the support and execution of their programs or projects with international organizations.

2.Entities supervised by the Financial Superintendency of Colombia, savings and credit cooperatives, higher level cooperative organizations, cooperative auxiliary institutions, multi-active and integral cooperatives and employee funds that carry out financial activities.

3.Stock exchanges and their commission agents.

Individuals and their assimilated that in the taxable year 2017 have obtained gross income exceeding $500,000,000 and that the sum of their income from capital income and/or non-labor income for the taxable year 2019 exceeds $100,000,000.

5.Legal entities and their assimilated entities, and other public and private entities obliged to file income and complementary tax returns, or income and net worth tax returns, which in the taxable year 2017 have obtained gross income in excess of $100,000,000.

Natural persons and their assimilated persons who receive capital income and non-labor income; legal persons and their assimilated persons, public and private entities, and other entities obliged to make withholdings and self-withholdings at the source for income tax, VAT and stamp tax during the taxable year 2019.

7.Persons or entities that enter into collaboration contracts such as consortiums, temporary unions, mandate contracts, delegated administration, contracts for exploration and exploitation of hydrocarbons, gases and minerals, joint ventures, joint venture, accounts in participation and cooperation agreements with public entities.

8.Public entities of the national and territorial scope, of the central and decentralized order, contemplated in Article 22 of the Tax Statute, not obliged to file income and net worth declarations.

9.General secretaries or those who act as bodies that finance expenses with resources from the national treasury.

10.Economic and/or business groups.

11. Chambers of commerce.

12. National Registrar of the Civil Status.

13. Notaries in relation to operations carried out in the development of their functions.

14.Persons or entities that prepare sales invoices or equivalent documents.

15.Mayors’ offices, districts and governors’ offices.

16.Cadastral authorities.

17.Responsible for the national carbon tax.

At this point, it is worth mentioning that several of the novelties included in Resolution 000070 of October 28, 2019 (request for information for the taxable year 2020 to be submitted in 2021) may be included in the reports for the current taxable year 2019.

“to decide whether a natural person has to report information for the 2020 taxable year, he/she will no longer have to look at the gross income obtained two years ago”

Such changes include that:

– Article 1ofResolution 000070 established which individuals and legal entities will be obliged to submit information for the taxable year 2020. However, in comparison with the texts of previous resolutions, this time literal d) mentions that in order to decide whether a natural person has to report information for the taxable year 2020, it will no longer have to look at the gross income obtained two years ago (which in this case would have been the income of the taxable year 2018), but will have to look at the total gross tax income of the immediately preceding year (in this case the taxable year 2019) and even at the total gross tax income of the same taxable year 2020.

Therefore, when the gross tax income for all concepts of the taxable year 2019 or 2020 is higher than $500,000,000 and at the same time it is met that the income of the taxable year 2020, only for capital income and non-labor income, has exceeded $100,000,000, the natural person will have to deliver most of the reports of the taxable year 2020 mentioned in articles 17 to 25 of Resolution 000070 of 2019 (report of payments to third parties, of accounts receivable, of accounts payable, etc.).

–Inthe text of literal e) of article 1 of Resolution 000070, at the time of defining which legal entities will have to report most of the information for the taxable year 2020, what was done was to eliminate the expression that was included in the resolutions of previous years and with which it was required in the first place that the legal entity was “declarant of income or income and assets”.In addition, it was provided that the legal entity will not have to look at the gross income obtained two years ago (which in this case would have been 2018) but will have to look at the fiscal gross income of the immediately preceding year (in this case those of the taxable year 2019) and even those of the same taxable year 2020.

Therefore, when the tax gross income for all concepts of the year 2019 or 2020 is higher than $100,000,000, the legal entity will have to respond for the delivery of most of the reports.

Not obliged to report for the year 2019

Following paragraph 2 of article 1 of Resolution 011004 of 2018, natural persons and their assimilated, legal entities and their assimilated and other entities that during the taxable year 2019 have advanced the process of cancellation of the Single Tax Registry – RUT – will not be obliged to submit exogenous information for the taxable year 2019.

Note: For 2018, this provision was only allowed for those liquidations made until the last business day of June 2018. However, for that year, it referred to taxpayers that had cancelled the commercial registration or had a liquidation act and had advanced the cancellation of their RUT. Now it only talks about having advanced the cancellation of the RUT before the Dian (see paragraph 2 of article 1 of Resolution 000060 of October 2017, modified by resolution 000045 of August 2018).

Said paragraph 2 of article 1 of Resolution 011004 of 2018, also states that in the case in which the cancelled RUT corresponds to a business collaboration contract, the operations of the contract must be reported in their own name by the hidden participants, consortium members, temporarily united, principals, contractors, associates, ventures or other parties to the contract, also complying with the provisions of article 26 of the rule in question – Business collaboration contracts.

Likewise, those who do not comply with the requirements set forth in article 1 of the aforementioned resolution, and listed in the previous subtitle, shall not be obliged to make this report.

Deadlines

In view of the declaration of the state of economic, social and ecological emergency throughout the national territory due to the public health problem originated by the spread of COVID-19; on March 25, 2020 the Dian issued Resolution 000027 whereby it modifies the deadlines established in article 45 of Resolution 011004 of 2018 to provide annual and annual information with monthly cut-off. Said deadlines are as follows:

Large taxpayers

Legal entities and individuals

Other maturities

– Cooperation and technical assistance agreementsforthe support and execution of programs or projects, with international organizations: due no later than the last business day of the month following the reporting period (article 42 of Resolution 000070 of 2019).

Note: Article 2 of Resolution 000027 of 2020, adds a transitory paragraph to Article 42 of Resolution 000070 of 2019, in which it provides that the information corresponding to the months of February and March 2020 must be submitted no later than the last working day of May 2020, i.e. May 29.

– NationalRegistrar’s Office: due on March 2, 2020 (article 43 of Resolution 011004 of 2018).

– Businessgroups: expires on June 30, 2020 (article 44 of Resolution 011004 of 2018).

– Industry and commercetax: no later than the last business day of August 2020 (paragraph 2 of article 45 of Resolution 011004 of 2018, added by article 15 of Resolution 000008 of 2020).

– Administrativeresolutionsrelated to municipal or district tax obligations (paragraph 3 of article 45 of Resolution 011004 of 2018, added by article 15 of Resolution 000008 of 2020 and modified by article 1 of Resolution 000027 of 2020).

Source: Update