Income tax return for foreign residents in Colombia

The income tax return is a legal and mandatory procedure, which applies to all persons who generate income or have assets in Colombian territory, regardless of whether they are residents, non-residents or foreigners. In the following article we will know everything related to the income tax return for foreign residents in Colombia.

Income tax return for foreign residents in Colombia

The income tax return is a legal process that every year must be filled out by individuals and legal entities in Colombia and thus avoid being sanctioned by the DIAN.

Many questions arise every year with respect to the income tax return, among them, the return to be filed by foreign individuals residing in Colombia. First of all, we must clarify that a foreigner is considered a Colombian resident for tax purposes when he/she stays 183 days continuously or discontinuously in Colombia.

This is established in Article 10 of the Tax Statute, which determines the criteria for a natural person to be considered a resident for tax purposes, whether national or foreign. Among the conditions that must be met are the following:

To remain continuously or discontinuously in the country for more than 183 calendar days, including days of entry and exit of the country, during any period of 365 consecutive calendar days, in the understanding that, when the continuous or discontinuous permanence in the country falls on more than one year or taxable period, the person is considered to be a resident from the second year or taxable period.

Now, once the foreign person has acquired the residence according to the previous point, he/she must pay taxes according to the provisions of article 9 of the Tax Statute, which establishes:

“That natural persons, national or foreign, resident in the country and the illiquid successions of deceased persons with residence in the country at the time of their death, are subject to income tax and complementary taxes with respect to their income and occasional gains, both from national and foreign sources, to their assets owned inside and outside the country.”

With this the law makes it clear that a foreigner qualified as resident in Colombia, must pay tax for his income obtained in the country and for the income obtained abroad.

Income tax return for foreign residents in Colombia: Who must file a tax return

Foreign persons residing in Colombia have the same obligations as nationals with respect to the income tax return, so they must consider the ceilings contained in Article 592 of the Tax Statute. It is established that those who present the following conditions must declare income:

–Possessingpatrimony and having obtained income in the country, on which no withholding at source has been made according to the concepts provided in article 407 to 411 of the Tax Statute.

–Nothaving assets in the country but having obtained income in the country.

–Thatthe gross patrimony on the last day of the taxable year exceeds 4,500 UVT ($154,215,000).

–Thatthe gross income is higher than 1.400 UVT (%47.978.000).

– Consumption with credit cards in the year exceeds 1,400 UVT ($47,978,000).

–Thatthe total purchases and consumptions in the year exceed 1,400 UVT ($47,978,000).

–Thatthe total value of bank deposits, deposits and financial investments exceed 1,400 UVT ($47,978,000).

It is important to point out that foreign residents in Colombia must fill out Form 210 for the income tax return, at the DIAN website www.dian.gov.co.

Income tax return for foreign residents in Colombia: When they must file the return

As mentioned above, foreign residents in Colombia have the same tax obligations as national individuals, so they must file income tax returns according to the dates published in the 2020 tax calendar of the DIAN.

In conclusion, if you are a foreigner and you meet the conditions to be a resident in Colombia, then you must evaluate if you are required to file income tax returns in 2020. Remember that complying with your tax obligations on time avoids being penalized.

Source: rankia