Income tax 2017 – Legal Entities: payment and return 2018

The due dates for the payment of income and supplementary tax, as well as its surtax and respective advance payment were included in articles 1.6.1.1.13.2.11 and 1.6.1.1.13.2.12 of Decree 1625 of 2016, which were modified by article 1 of Tax Calendar Decree 1951 of 2017.

Decree 1951 of 2017 established the national tax calendar by which the deadlines for the expiration of the different tax liabilities administered by the Dian are ordered; according to the indications of the mentioned decree, the deadlines to declare and pay the income and complementary tax of legal entities will depend on whether or not the taxpayer belongs to the group of large taxpayers, as follows:

Large taxpayers

Individuals or legal entities that as of December 31, 2017, and according to the indications of Resolution 000076 of December 1, 2016, are qualified as large taxpayers by the Dian, may file the income and complementary tax return as of March 8, 2018, but with a deadline between April 10 and April 23 of the same year, according to the last digit of the NIT of the declarant and without taking into account the verification digit.

In this regard, it is important to take into account that this type of taxpayers must pay the total amount of tax and its respective advance payment in three (3) installments, of which the second one will be accompanied by the tax return. The deadlines for the payment of the installments and the respective declaration are established in article 1.6.1.1.13.2.11 of Decree 1625 of 2016 (modified by article 1 of Decree 1951 of 2017). The following are the established deadlines:

Payment 1st installment

“the value of the first installment cannot be less than 20% of the tax paid for the taxable year 2016.”

In this case, the value of the first installment cannot be less than 20% of the tax paid for the taxable year 2016. When the tax and the definitive advance payment are settled in the tax return for the taxable year 2016, from the value to be paid, the amount paid in the first installment must be subtracted and the balance must be paid in two equal installments, as follows:

Declaration and payment 2nd installment

Payment 3rd installment

Legal entities and other taxpayers

The deadlines for filing the income and complementary tax return of other legal entities, corporations and assimilated entities, taxpayers of the special tax regime -RTE-, different from those qualified as large taxpayers and the cancellation in two equal installments of the value to be paid, were established in article 1.6.1.1.13.2.12 of Decree 1625 of 2016 (amended by article 1 of Decree 1951 of 2017). According to said article, the declaration and payment of the first installment may be made as of March 8, 2018 and is due depending on the last two digits of the NIT appearing in the RUT, without taking into account the verification digit, as follows:

Declaration and payment 1st installment

As it can be observed, for the declaration and payment of the first installment of the income tax the dates were established again, obeying the last two digits of the NIT that appear in the RUT, likewise without taking into account the verification digit. However, for the payment of the second installment, only the last digit of the RUT must be considered, as shown below:

Payment 2nd installment

Mechanism of works for taxes is a novelty.

“shall have until May 25, 2018 to deposit in the respective trust the moneys they have committed for such works.”

The new versions of articles 1.6.1.1.13.2.22 through 1.6.1.13.2.24, indicate that legal entities (whether or not large taxpayers) that between January 1 and March 31, 2018 carry out the procedures of Decree 1915 of November 23, 2017 to avail themselves of the figure of works for taxes of Article 238 of Law 1819 of 2016 and submit to the Territorial Renewal Agency -ART- the request to link a portion of their income tax for the taxable year 2017 to said figure through modality 1 mentioned in the decree, they will have until May 25, 2018 to deposit in the respective trust the monies they have committed for such works, and therefore they will also have until that same date to file their income tax return for taxable year 2017 and pay the balance that may correspond to them for the first and second installment (in the case of large taxpayers), or the first installment (in the case of those that are not large taxpayers).
In any case, if the ART does not accept their request to link to the figure of works in taxes, for not complying with all the requirements of Decree 1915 of 2017, and additionally the taxpayer had not filed their return within the deadlines of articles 1.6.1.1.13.2.11 and 1.6.1.1.3.2.12 (which indicate that the normal due dates of the return will elapse between April 10 and May 8, 2018), the taxpayer will have to file his return out of time by settling the respective penalty for untimeliness plus late payment interest on the first and/or second installment.

if the ART rejects the request for linkage to the figure of works for taxes for different reasons (for example, because the quota of works to which taxpayers could be linked with the figure of works for taxes was completed), the taxpayer may file its return and pay its first and/or second installment without penalties or interest no later than May 25, 2018

Source: Actualize