Tax Penalties: Declaration of Foreign Assets

Taxpayers who own assets outside the country, who are obliged to file the annual declaration of assets abroad (form 160), and do not comply with such obligation, will be subject to the penalties provided in articles 641 and 643 of the Tax Statute.

Next, we will answer the following question: What are the different tax penalties that apply to the annual declaration of assets abroad?

According to article 607 of the Tax Statute -ET-, the taxpayers of the income tax and complementary tax who are subject to this tax in relation to their income from national and foreign sources, as well as for their assets held inside and outside the country, and who also have assets abroad, shall be obliged to file the annual declaration of assets abroad (form 160) on the same dates in which their income tax return is filed.

However, if they fail to comply with such obligation, they will be subject to the penalty for untimeliness established in paragraph 1 of article 641 of the ET, or the penalty for failure to file the return, provided in paragraph 8 of article 643 of the ET.

Thus, when the declaration of assets abroad is filed out of time, the penalty for each month or fraction of a month will be equivalent to 1.5% of the value of the assets held abroad, provided that it is filed before the summons for failure to declare by the Dian, or 3% if it is filed after the summons and before the resolution of the penalty for failure to declare is issued. It should be noted that the amount of the penalty may in no case exceed 25% of the total value of the assets abroad.

On the other hand, when the taxpayer does not file the declaration of assets abroad, the applicable penalty will be the greater of 5% of the gross assets appearing in the last income tax return filed, and 5% of the gross assets determined by the tax administration for the period to which the non-filed return corresponds.

Source: Actualícese