UVT: Know the value set for 2019

The DIAN announced the increase in the Tax Value Unit (UVT), which establishes the basis for taxpayers to calculate their taxes.

Through Resolution 56 of November 22, 2018, the National Tax and Customs Directorate (DIAN) revealed that the UVT for 2019 will be $34,270. That means that the increase will be 3.36% with respect to the UVT that was in effect for 2018, which was $33,156.

Each year, the DIAN sets the increase of the UVT that allows determining the absolute figures and values applicable to the obligations and taxes administered by the DIAN. To apply the UVT, the number of UVT specified in the norm is multiplied by the value fixed for each year and the result is approximated according to the procedure established in the Tax Statute.

The UVT figure is fixed by resolution and this is obtained from the accumulated variation of the consumer price index for average income, which for this year took into account the period between October 1, 2017 and October 1, 2018. This year’s increase was lower than that authorized in 2017, when the UVT had a growth of 4.07%.

Knowing the value of the 2019 UVT is important because those who are behind in taxes and wish to catch up next year will have to pay a late payment penalty that is set at minimum 10 UVT. As the penalty does not change and each year the government must set its value, then it is enough to look at the rule and convert the value to the current time.

An example of the late payment penalty

2007: 10 x $20.974 = $209.740

2019: 10 x $34.270 =$342.700

We see that the UVT remain constant; only the peso value of the UVT changes.

Source: finanzaspersonales