Seminar: Unified Tax under the Simple Taxation Regime “A proposal for formalization”

Date: 10 of july

Time: 7:30 am - 12:00 pm

Place: AUH 202

The event, offered by experts in the field, will address, among other topics, the operation and precedent of this system in Colombia.

After the establishment of the not-so-successful “Monotributo” (Mono-tax), the national Government presented a new simplified tax regime pursuing three essential purposes: Reduce the formal and substantial tax burdens, boost formality, and in general, facilitate and simplify the fulfillment of tax obligations, as in our country the informality rate is estimated at 50 to 60 percent.

To such extent, article 66, Law 1943 of 2018, replaces the eighth book of the Tax Statute and creates a unified tax under the Simple Tax Regime – SIMPLE – unifying the substantial and formal income tax obligations, the sales tax (in some cases), the national consumption tax, and the industry and trade tax. It also includes, as a deduction, part of the social security paid for employees, and a percentage of the revenues received by electronic means.

Pursuant to the above, the Government’s proposal is quite ambitious, as it seeks for legal and natural people having up to 80,000 UVT (tax units) gross income (approximately 2,740 million pesos), which is about 80 percent or more of taxpayers, included in this new regime, which takes the gross income as taxable basis, disregarding the common debugging of costs and expenses.

For the above reasons, it is necessary to analyze the paradigm shift intended with the Simple regime, demonstrate its benefits, review the resulting legal issues and practices, and, in general, study if this mechanism is better for taxpayers, if it will achieve the expected reduction in informality, and if it becomes a successful tax tool, or in an ineffective set of rules.

Free admission with advance registration at mario.hernandez@uexternado.edu.co