Individuals obliged to file income tax returns

Individuals and illiquid successions will be obliged to file the income tax return for the taxable year 2018, within the deadlines established by the National Government, as long as they comply with the requirements presented below.

As we have already mentioned in previous editorials, for the taxable year 2018 natural persons and illiquid successions must file the income and complementary income tax return on form 210, resorting to the cédulación system established by Law 1819 of 2016, in which the annual income of the taxpayer is divided into five cédulas, depending on the source thereof, provided that such responsible parties comply with certain amounts and requirements. Below, we present the necessary key points regarding the income tax return.

Requirements to be obliged to file a tax return

During 2019, natural persons and illiquid successions that as of December 31, 2018 meet the following requirements will be obliged to file the income and complementary income tax return:

–Theirgross net worth exceeds 4,500 UVT ($149,202,000).

–Their gross income exceeded 1,400 UVT ($46,418,000).

– Credit cardconsumptionexceeded 1,400 UVT ($46,418,000).

– Total purchases and consumption duringtheyear exceeded 1,400 UVT ($46,418,000).

– Consignments, deposits or investmentswerehigher than 1,400 UVT ($46,418,000).

“despite the fact that the Financing Law 1943 of 2018introduced changes regarding the income tax return of natural persons, such modifications will only begin to take effect as of the taxable year 2019.”

Please note that the aforementioned amounts are calculated based on the UVT that ruled during 2018, which was equivalent to $33,156. It is necessary to mention that, despite the fact that the Financing Law 1943 of 2018introduced changes regarding the income tax return of natural persons, such modifications will only begin to take effect as of taxable year 2019. Therefore, for the filing of the income tax return corresponding to the taxable year 2018, one must proceed in accordance with the specifications of Article 241 of the Tax Statute -ET- with the version corresponding to the changes introduced by Law 1819 of 2016.

Cedulation system

Individuals and illiquid successions that comply with the requirements indicated above must file their income tax return on form 210, which contains the following five types of cedulas:

-Labor income: integrated by income corresponding to salaries, commissions, social benefits, per diem, representation expenses, fees (provided they are received by individuals who do not hire or link 2 or more workers for at least 90 days), ecclesiastical emoluments and compensations received by cooperative associated work.

–Pension income: includes retirement, disability, old age, survivor’s, professional risks, compensation in lieu of pensions and reimbursement of pension savings.

–Capital income: includes interest, financial yields, leases, royalties and exploitation of intellectual property.

Non-labor income: composed of the fees of individuals who provide services and hire for at least 90 continuous or discontinuous days, 2 or more workers or contractors associated with the activity, and other income that is not classified in any of the above categories.

–Income from dividends and participations: includes all income from dividends and participations.

Deadlines for filing the income tax return

Taxpayers must file and pay the income tax return within the deadlines established by the Government, on dates ranging from August 6 to October 17, 2019, for which they must take into account the last two (2) digits of the NIT, omitting the verification digit (see our 2019 tax calendar).

Source: Actualícese