Individual Income Tax Returns: Signature of the public accountant

When individuals (residents and non-residents) are required to keep accounting records, at least for tax purposes, and at the same time meet the criteria of Article 596 of the ET, they must file their income tax return for the taxable year 2018 accompanied by the signature of an accountant.

The rule contained in the second paragraph of numeral 6 of article 596 of the Tax Statute -ET- mentions the cases in which the income tax returns for the taxable year 2018 filed by individuals (whether residents or non-residents) would need to be accompanied by the signature of a public accountant. Said regulation reads as follows:

“Article 596. Content of the income tax return. The declaration of income tax and complementary taxes shall be filed in the form indicated for such purpose by the General Directorate of National Taxes. This return shall contain:

(…)

Thesignature of the statutory auditor in the case of taxpayers obliged to keep accounting books and who, in accordance with the Code of Commerce and other regulations in force on the matter, are obliged to have a statutory auditor.

The other taxpayers and entities obliged to keep accounting books, shall file the income and complementary tax return or income and equity return, as the case may be, signed by a public accountant, whether or not he/she is employed by the company or entity, when the gross equity on the last day of the taxable year or period, or the gross income of the respective year, is higher than 100,000 UVT”.

According to said rule, if it is a natural person or resident unliquidated succession obliged to keep accounts, at least for tax purposes (among which are, for example, all those who are traders and also those who are producers of goods exempt from VAT under Article 477 of the ET), it will become necessary to examine whether the sum of their gross equity at the close of 2018 that they will report on form 210 (line 29), or the sum of their total gross income for 2018 (adding ordinary income and occasional gains, i.e., adding lines 32+38+43+54+67+67+70+71+72+77 of the same form 210) is greater than 100.000 UVT ($ 3,315,600,000 for 2018).

And if it is a natural person or non-resident illiquid succession obliged to keep accounting for the operations carried out in Colombia, it will be necessary to examine whether the sum of its gross equity at the end of 2018, which it will report in the form 110 (line 41), or the sum of its total gross income for 2018 (adding ordinary income and occasional gains, that is, adding lines 50+75 of the same form 110) is greater than 100,000 UVT ($ 3,315,600,000 for 2018).

If the above is met, it will be necessary to include on page 5 of the RUT of the natural person filing the tax return (and in boxes 148 to 159) the data of the public accountant who will sign the tax return. In addition, if the natural person filing the tax return must file it only virtually, in this case it is clear that the accountant who will sign the tax return will also need to have the electronic signature instrument.

“if the income tax return for the taxable year 2018 is filed without the mandatory signature of the public accountant, such return may be considered as not filed.”

In this regard, it is necessary to highlight that if the income tax return for the taxable year 2018 is filed without the mandatory signature of the public accountant, such return may be considered as not filed (see literal “b” of Article 580 of the ET). In any case, for this to happen, it is necessary that the Dian detects the irregularity within the period of finality of the return. When this happens, the taxpayer would have to file the return again and pay the penalty for untimeliness of Article 641 of the ET, but the reductions referred to in paragraph 2 of Article 588 of the ET and the one mentioned in Article 640 of the same statute could be applied to it.

In addition, it is important to highlight that if the income tax return for the taxable year 2018 requires the signature of an accountant, the 2019 returns corresponding to VAT, consumption tax -INC- and withholdings at source, also automatically require the signature of an accountant. Therefore, if any of such returns were already filed without including such signature, the Dian may consider them as not filed (a situation to which the same comments above apply in any case).

Source: Actualícese