Learn about the new taxes approved by Congress

September 14, 2021

On September 8, 2021, the “La República” website published new taxes approved by Congress on the evening of September 7, 2021.

1. Tax on tax normalization

For 2022 the tax on tax normalization (referring to the possession of omitted assets or non-existent liabilities until January 1, 2022) is proposed as a complement to the income tax, to be charged to income tax contributors or income tax substitute regimes for those with omitted assets or existing liabilities.

The taxable base of the assets will be considered as the acquisition price of such assets to determine their tax cost.

2. General income tax rate

On the other hand, the general income tax rate applicable to local companies, permanent establishments of foreign entities, and foreign legal entities obliged to file the annual income tax affidavit and complementary taxes will be 35% as of the taxable year 2022.

3. Obligated parties to provide information

The DIAN (Dirección de Impuestos y Aduanas Nacionales – National Tax and Customs Directorate) will define who is obliged to provide information to comply with international commitments regarding the transfer of information as well as the due diligence procedures they must comply with.

4. Unified tax under the simple taxation regime

Regarding the rates of this tax time, the text determines that such value depends on the annual gross income and the activity. In case of 6,000 UVT (Unidad de Valor Tributario – Taxable Value Unit), which for 2021 is $36,308, the tax rate is 2% up to 6,000 UVT, 2.8% up to 30,000 UVT, and 8.1% up to 100,000 UVT 11.6%. 

5. Goods imports

On the goods import object of postal traffic, urgent shipments or fast delivery shipments, whose value does not exceed US$200 and proceed from countries Colombia has signed a free trade agreement or treaty through is expressly obliged not to charge tax. The benefit may not be used when imports are for commercial purposes.

Source: La República 09/09/21