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An approach to the new Individual Income Tax Laws

As a result of Law 1819 of 2016, beginning in 2017, Colombians must declare their income under new parameters established in the recent legislation. In this context, the Public Accounting Faculty offered a course- workshop to explain how to prepare individual income tax returns.

The workshop was offered by Alberto Valencia Casallas, Public Accountant, specialized in Management and Tax Audit. The speaker initiated the course by differentiating between resident and non-resident, national and foreign, individuals.

Resident natural persons who uninterruptedly or intermittently remain in the country for more than 183 calendar days, are required to file a tax return. Also considered residents are domestic individuals if 50 percent of their income is derived from national sources, or if the same percentage of their assets is administered by the country.

Resident individuals in Colombia, nationals or foreigners, are required to declare their assets held in or outside of the country, according to the residence taxable basis. Also, only assets owned in Colombia must be declared by non-resident individuals.

There are two major brackets on this subject.  On the one hand, taxpayers who are required to submit a return signed by an accountant and, on the other, those who are not required to do so. Taxpayers requiring a signature are those having assets exceeding 100,000 TVU (Tax Value Unit). Taxpayers who do not require a professional’s signature must file their tax returns between August 9 and October 19, 2017, according to the last two digits of their ID card.

Valencia also spoke on the different systems for clearing up the taxable income basis, under Laws 1607/2012 and 1739 of 2014. He explained, in detail, the parameters of the new law.

The event was attended by over 190 persons who analyzed, in a practical manner, the systems and effects of this law affecting citizens this year.  To bring this knowledge to the regions in the country, the Externado offered two talks, in Pereira, and Villavicencio.