Individual income tax return: taxable year 2017

The national government, through the Ministry of Finance, approved Decree 1951 of 2017, which establishes the conditions for those who must comply with this tax burden.

This document, which is available on the website of the Presidency of the Republic, is the update to decree 1625 of 2016. So go prepare your return, because if your gross income in 2017 exceeded $44,603,000, that is, salaries greater than $3,716,916 per month, if purchases and consumptions were greater than $44,603,000 or if your gross equity at the end of 2017 exceeded $147,366,000, you will be subject to the filing of income tax return.

Filing the tax return does not necessarily oblige you to pay income tax, since, if you made a good tax planning and have all the supports at hand, payments to prepaid medicine, housing savings, payments to family members who are economically dependent on you, you can achieve that the filing of your income tax return turns out to be the most favorable.

The Ministry of Finance in its decree, established the deadlines for the filing and payment of taxes, advances and withholdings at source in 2018 and other provisions are issued. It should be noted that the accounts must be made based on the tax value unit (UVT) of $33,156, (key data for those who must pay the retefuente) but the accounts of equity, expenses and purchases, income are made with the UVT set for 2017, i.e. $31,859.

Income tax return

The document indicates who are the citizens not obliged to file the return and classifies in several groups to wage earners, natural persons and liquid successions, foreign natural or legal persons, among others. According to Article 1.6.1.1.13.2.7. Taxpayers not obliged to file income and complementary tax returns, the following taxpayers are NOT obliged to file income and complementary tax returns for the taxable year 2017:

(a) Salaried employees who are not liable for sales tax under the common regime, whose gross income derives at least 80% from payments originating from an employment or legal and regulatory relationship, provided that in relation to the taxable year 2017 all of the following additional requirements are met in full:

1. that the gross equity on the last day of the taxable year 2017 does not exceed four thousand five hundred (4,500) UVT ($143,366,000).

2. That the gross income be less than one thousand four hundred (1,400) UVT ($44,603,000).

3. Consumption by means of credit card does not exceed one thousand four hundred (1,400) UVT ($44,603,000).

4. That the total value of purchases and consumptions does not exceed one thousand four hundred (1,400) UVT ($44,603,000).

5. That the total accumulated value of bank consignments, deposits or financial investments does not exceed one thousand four hundred (1,400) UVT ($44,603,000).

b) Individuals and unliquidated successions that are not responsible for the sales tax of the common regime, resident in the country, provided that, in relation to the year 2017, they meet all of the following requirements:

1. that the gross net worth on the last day of the taxable year 2017 does not exceed four thousand five hundred (4,500) UVT ($143,366,000).

2. That the total income of the respective taxable year does not exceed one thousand four hundred UVT (1,400) ($44,603,000).

3. That the consumption by means of credit card does not exceed one thousand four hundred (1,400) UVT ($44,603,000).

4. That the total value of purchases and consumptions does not exceed one thousand four hundred (1,400) UVT ($44,603,000).

5. That the total accumulated value of bank consignments, deposits or financial investments does not exceed one thousand four hundred (1,400) UVT ($44,603,000).

c) Foreign individuals or legal entities. Foreign individuals or legal entities, without residence or domicile in the country, when the totality of their income has been subject to withholding at the source referred to in Articles 407 to 411 inclusive of the Tax Statute and such withholding at the source has been made.

d) Individuals who belong to the single taxpayer.

e) Voluntary Income Tax Return. The income tax and complementary tax, payable by taxpayers not obliged to declare, is the result of adding the withholdings at source for any concept that must be applied to the payments or credits on account, as the case may be, made to the taxpayer during the respective taxable year or period.

“The natural persons resident in the country to whom withholdings at the source have been made and that according to the provisions of the Tax Statute are not obliged to file an income tax return and complementary tax return, may file it. Such declaration produces legal effects and shall be governed by the provisions of Book I of the same Statute”, states the proposal.

Deadlines for filing the return

As of March 8, 2018, individuals may file their return and the last day they have to pay the income tax and complementary tax of the advance payment will take into account the last two digits of their NIT that appears in their Sole Tax Registry (RUT) certificate. According to the project, this would be as follows:

Source: Personal Finance