The tax-payment period for the year 2017 in Colombia has begun. During this period, Colombian companies are obligated to present their financial declaration to the Colombian Tax Authority, DIAN. Also, residents must pay taxes if they received a certain amount of income during the year 2017. In one of our previous articles, we gave an overview of the taxes in Colombia. This article will tell you if and when you need to pay your taxes as a company or a resident.
Colombian Accountant – When Does a Company Need to Pay Taxes in Colombia in 2018?
In the months of March, April or June 2018, Colombian companies pay their taxes for the year 2017. The payments are made in two installments:
- The 1st tax-payment is in March or April 2018. Also, companies need to present their financial declaration in one of these months.
- The 2nd tax-payment is in June.
The exact dates of both payments depend on the companies Tax Identification Number (Numeró de Identification Tributaria: NIT) and imply that each company has his own specific date and month when it needs to pay its taxes. The exact dates are determined as follows:
- The 1st tax-payment is based on the last two digits of the NIT of the company.
- The 2nd tax-payment is based on the last digit of the NIT of the company.
When Does a Resident Need to Pay Taxes in Colombia in 2018?
Conversely to Colombian companies, Colombian residents need to pay their taxes for the year 2017 in the months of August, September or October of 2018. You are considered to be a resident if you meet one or more of the following requirements:
- You stayed in Colombia for more than 183 days during a whole year of 365 days. It doesn’t matter if this is continuous-period in Colombia or not.
- If your family, assets or business remains in Colombia, although you may reside in another country.
Not all Colombian residents are obligated to pay taxes on their income for a certain year. This only applies if they can fulfill one or more of the following criteria:
- If a resident’s income is higher than COP 44.603.000 within the tax year of 2017.
- If a resident’s gross equity is higher than COP 143.366.000 within the tax year of 2017.
- If there were credit card purchases or whole purchases during 2017 that exceed the amount of COP 44.603.000.
- If the accumulated balance on banking accounts, saving, deposits or financial investments, exceed the amount of COP 44.603.000 during 2017.
Exactly when a resident needs to pay their taxes, depends on the last two numbers of the NIT of the resident that is equal to the residents Personal Identification Number (numeró de identificación personal).
Where Can I Find More Information About Paying Colombian Taxes in 2018?
At Biz Latin Hub we have a group of professional accountants and financial experts that are happy to help you with all the questions you may have about the Colombian tax-system. Please contact our CEO, Craig Dempsey, to see how we can provide you with all the information about Colombian taxes.
Do you want to know more about our the accounting and finance services we offer? Watch the video below!