BOGOTÁ
MEDELLÍN
Calle 67 # 7-35 Of. 1204 Edificio Caracol Bogotá, Colombia Phone: +571 319 2900
Cra 43A # 1-50 Of. 209 San Fernando Plaza Medellín, Colombia Phone: +574 444 3815
The following document is provided by G贸mez-Pinz贸n Abogados S.A.S. to its clients and friends as a general reminder of certain legal obligations that must be complied with by local companies and branches of foreign companies at the beginning of each year. It should be noted that this document does not state any specific legal or regulatory obligation related to a particular issue or a particular company. For that purpose, we offer you our team of attorneys with broad experience in business-oriented legal practice. The information contained herein is not intended to provide an exhaustive or detailed analysis of the obligations and duties which must be complied with by companies that carry out activities in the country. Therefore, it is the responsibility of each recipient to determine the applicability of the obligations and proceedings hereinafter described, as well as other duties that may apply, according to the activities undertaken by each company, and to ensure its compliance by internal officers of each company. Unless by express mandate of our clients, G贸mez-Pinz贸n Abogados S.A.S. is not obliged to perform the following duties, but we would be more than glad to assist our clients:
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Corporate Matters • To update the Mercantile Registry of companies, commercial establishments,
and branches of foreign companies before March 31st. With the issuance of Law 1727 of 2014, a penalty imposed by the Superintendence of Industry and Commerce was established for the untimely renewal of the Mercantile Registry.
• According to Article 30 of Law 1727 of, 2014 the Chambers of Commerce shall
submit the list of companies that failed to renew their registry within one month after the deadline for the renewal of the Mercantile Registry. Based on the foregoing, the Superintendence of Industry and Commerce may impose a fine of up to seventeen (17) Monthly Legal Minimum Wages (“MLMW”). Also, according to Article 31 of the aforementioned law and article 144 of Law 1955 of 2019, the Chambers of Commerce shall annually update the database of the Sole Social and Corporate Registry (“RUES”) as follows: - Commercial companies that have not fulfilled the obligation to renew their Mercantile Registry in the last three (3) years will be declared in a state of dissolution and liquidation. - The Mercantile Registry of individuals, commercial establishments and branches that have not fulfilled the obligation to renew their Mercantile Registry in the last five (5) years will be canceled.
• To summon the General Shareholders Assembly or the Board of Partners to an
ordinary meeting for the approval of financial statements, in compliance with the procedures established in the company’s by-laws. Commercial companies must meet at least once a year to approve the financial statements on the date determined in the by-laws, or in absence of any information on this point, within the first three (3) months of the year. Within the month following the approval of the financial statements, they must be deposited in the chamber of commerce of the place of residence of the company. Please remember that the documents indicated in article 446 of the Code of Commerce must be available for the shareholders, along with those specified in articles 46 and 47 of Law 222 of 1995. The Board of Directors must also be summoned for the matters of its competence.
• To register in the Mercantile Registry, in accordance article 91 of Law 633 of 2000,
all web pages and Internet sites of Colombian origin that operate on the Internet and perform commercial or financial activities or rendering of services. Also, information regarding economic transactions must be provided to the Colombian Tax and Customs Authority (“Dirección de Impuestos y Aduanas Nacionales” – “DIAN”), as requested by such entity.
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• Companies and branches under the surveillance or control of the Superintendence of Corporations, or those inspected companies that receive the instruction of said superintendence, must report immediately any corporate change such as modification or amendment to the corporate purpose or name, economic activity, transformation, term, new appointments, among others. The foregoing was established in External Circular 03 dated January 13, 2005, issued by said superintendence.
Filing of Financial Information (IFRS)
• Corporations, single-person companies, and branches of foreign companies
(“Corporate Entities”) under the surveillance or control of the Superintendence of Corporations must file before such entity all accounting and financial information corresponding to the period encompassing January 1st to December 31st, 2019 following international financial reporting standards (“IFRS”), audited and certified, with the scope provided in articles 37 and 38 of Law 222 of 1995.
• This obligation must also be fulfilled by Corporate Entities under the inspection
of said Superintendence and which are required to do so as per written notice addressed to the judicial notification addresses registered in the mercantile registry unless they are going through a voluntary liquidation process; a situation which shall be informed through the following email address webmaster@ supersociedades.gov.co. Notwithstanding the foregoing, the Corporate Entities under the permanent surveillance of the Superintendence, which are undergoing a voluntary liquidation process, shall submit the financial information to such entity through the “Storm” system.
• The separate and individual financial statements certified and audited as of December 31, 2019 for IFRS or small and medium enterprise (SMEs as per its acronym in Spanish) shall be submitted within the following dates in accordance with the last two digits of the tax ID:
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Schedule of Financial Information Filing LAST TWO DIGITS OF THE TAX IDENTIFICATION NUMBER-NIT
INFORMATION DELIVERY
LAST TWO DIGITS OF THE NIT
INFORMATION DELIVERY
01 – 05 06 – 10 11 – 15 16 – 20 21– 25 26 – 30 31 – 35 36 – 40 41 – 45 46 – 50
March 30th March 31st April 1st April 2nd April 3rd April 13th April 14th April 15th April 16th April 17th
51 – 55 56 – 60 61 – 65 66 – 70 71 – 75 76 – 80 81 – 85 86 – 90 91 – 95 96 – 00
April 20th April 21st April 22nd April 23rd April 24th April 27th April 28th April 29th April 30th May 4th
• Entities that have more than one accounting closing period in the year must
fill out the corresponding information for each fiscal period independently and submit it in the dates indicated above, prior authorization request sent to the email efinancieros@supersociedades.gov.co addressed to the Group of Business Reports (Grupo de Informes Empresariales).
• Parameters for the submission of financial information and additional documents
are contained in Circular 201-000008 dated November 22, 2019, issued by the Superintendence of Corporations (the “Circular”).
• Please remember that the deadlines for submission of documents are mandatory and their non-compliance is subject to fines.
• To register in the Mercantile Registry situations of control or business groups in accordance with the provisions contained in article 30 of Law 222 of 1995.
• To register in the Mercantile Registry any modification regarding control situation
or business groups, to update the information concerning such situations. It should be noted that the applicable government control and surveillance entities are entitled, by law, to order the abovementioned registration when omitted, as well as to initiate investigations and to impose sanctions if it considers that the company did not fulfill this obligation.
• Parent or controlling companies must comply with the obligation of preparing,
submitting and publishing consolidated financial statements, in accordance with article 35 of Law 222 of 1995. This obligation does not apply to foreign corporations that act as a parent or controlling companies that are not domiciled
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in Colombia; in such cases, their subsidiaries in Colombia are the ones obliged to comply with this obligation. Decree 2649 of 1993 sets forth some conditions and requirements for preparing the consolidated financial statements, as well as the standards and criteria for their disclosure.
• The parent or controlling companies under inspection that are required to provide individual financial information, and the parent or controlling companies obliged to submit it, shall submit, besides the individual financial statements, the consolidated financial statements, and other required information before May 27, 2020.
• Decree No. 019 of 2012, clarifies that whenever the financial statements are deposited in the Superintendence of Corporations, they do not need to be deposited in the chambers of commerce.
• Resolution 25985 of 2006, modified by Resolution 16085 of 2015 issued by the Superintendence of Public Services sets forth the requirement for public utility service providers to report information concerning their Accounting Plan and Unified System of Costs and Expenses, through the Unified Information System (“Sistema Único de Información-SUI”). The aforementioned resolution applies to companies providing public utility services which are mentioned in articles 15 and 16 of Law 142 of 1994 and which are under the surveillance and control of the Superintendence of Public Services.
• We recommend taking into consideration Decree 4350 of 2006 to determine
which corporations are subject to the surveillance of the Superintendence of Corporations as of this year. Under such Decree, the criterion of surveillance was redefined in accordance with the amounts of assets (a total of assets, including a full inflation adjustment, equal to or higher than thirty thousand (30.000) MLMW and the amount of income (total income, including a full inflation adjustment, equal to or higher than thirty thousand (30.000) MLMW dated as of December 31, 2019, based on the minimum wage in force by January 1, 2020. New criteria were also added by said Decree.
• In general terms, and pursuant to of Chapter X of the External Circular 100-
000005 of November 22, 2017 issued by the Superintendence of Corporations Companies the commercial entities under permanent surveillance or control of the Superintendence of Corporations that as of December 31st of the immediate last year had obtained income equal to or over one hundred and sixty thousand (160.000) (Approximately USD $41,000,000) shall adopt the self-regulating and risk management system for money laundering and financing of terrorism (“Sistema de Autocontrol y Gestión del Riesgo de LA/FT”) within a period of up to twelve months (12), counted as from January 1st of the year following they have to comply with the requirements established in said Circular.
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• However, Chapter X of the External Circular 100-000005 of November 22, 2017,
indicates specific requirements related to the income of companies that are under permanent surveillance or control of the Superintendence of Corporations and belong to real estate, mining and quarrying, legal services, accounting services, collection and/or credit rating; commercialization of vehicles, its parts, and accessories, and building construction sectors. These companies must comply with all the requirements indicated in Chapter X of the External Circular 100-000005 of November 22, 2017 if they have the following income: INCOME IN MINIMUM WAGES
SECTOR
Real Estate Mining and Quarrying Legal Services Accounting Services, Collection and/or Credit Rating Commercialization of Vehicles, its parts, and accessories Construction of Buildings Any other Sector
Over 60.000 Over 60.000 Over 30.000 Over 30.000 Over 130.000 Over 100.000 Over 160.000
• By means of Resolution No. 200-000558 of July 19, 2018 that modified Resolution
No 100-002657 of July 25, 2016, the Superintendence of Corporations established the criteria to determine which companies shall adopt a business ethics program for preventing the behaviors provided for in article 2 of Law 1778 of 2016, i.e. identify, detect, prevent, manage and mitigate the risks of transnational bribery. In that sense, the Superintendence of Corporations indicated that the companies obliged to adopt such program are those companies subject to its surveillance which in the year immediately preceding carried out regularly, businesses of any nature with foreign individuals or legal entities under public or private law (“International Businesses or Transactions”) provided that both of the situations mentioned below concur: (i) International Business or Transaction that is carried out throughout third parties; (ii) International Businesses or Transactions related to specific economic sectors, such as pharmaceutical; infrastructure and construction; manufacturing; mining and energy; and information and communication technologies. For the latter situation, the Superintendence of Corporations considered criteria, such as the value of assets, income, and number of employees. Accordingly, the obliged companies must adopt the program, taking as reference the provisions outlined in Resolution No. 200-000558 of July 19, 2018 and External Circular No. 100-000003 of July 26, 2016.
• Companies currently under the surveillance of any superintendence must pay a special contribution to the corresponding entity, according to the total amount
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of the company’s assets. The corresponding amount and its form of payment are determined in accordance with the normativity they issue each year. These companies shall also comply with the obligation of updating their corporate information before the pertinent superintendence.
• We also recommend verifying if your company (in case it does not need to have
a statutory auditor from its incorporation by legal or statutory mandate) reached the limits of assets or gross income indicated by Law 43 of 1990, to appoint a statutory auditor (i.e. assets that up until December 31, 2019 exceeded the total of five thousand (5.000) MLMW and/or its gross income during the previous year exceeded the total of three thousand (3.000) MLMW). In case of having reached these amounts, the general shareholders assembly or board of partners, as applicable, must make said appointment at the yearly ordinary meeting at the latest.
Foreign Exchange Obligations • Colombian residents with investments abroad, or foreign investors (directly,
through proxies or by the legal representative of the recipient company) must register the substitutions of foreign investment by filing, simultaneously, Form No.12 “Declaration of Registry for Cancellations of Foreign Investment” and Form No. 11 “Declaration of Registry of Foreign Investment”, within six (6) months counted as from the date when the transaction that originates the substitution was recorded in the company’s stock ledger, without any other supporting document.
• If the substitution is derived from a reorganization process, the filling before the
Central Bank has to be done presenting Form N° 11A within the following six (6) months for operations carried out after July 26, 2017.
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• Foreign investors (directly, through proxies or by the legal representative of the
recipient company) must inform the cancellations of foreign investment by filing Form No.12 “Declaration of Registry for Cancellations of Foreign Investment”, within six (6) months counted as from the date when the transaction that originates the cancelation was recorded in the company’s stock ledger, without any other supporting document.
• Companies that have restructured their paid-in capital (increasing or reducing the number of shares or quotas due to a change on the nominal value), must inform this situation to the Central Bank by filing in the “Declariation of Capital Recomposition” without any other supporting document.
• The investors that performed investments in other forms different than in foreign
currencies (any act, agreement or licit operation), can register directly, through proxies or by the legal representative of the recipient company, their investment before the Central Bank at any time, by filing Form No. 11 “Declaration of Registry of Foreign Investment”.
• Companies that have compensation accounts (cuentas de compensación) should
remember that: (i) the last business day of each month at the latest, they must file Form No. 10 (“Movements of the Compensation Account ”), to the Central Bank; (ii) if applicable, before submitting Form No. 10, they must file forms (“Declaración de Cambio Información de Datos Mínimos de las Operaciones de Cambio por Inversiones Internacionales”) and (“Formulario para la Transmisión de Información de Operaciones de Cambio por Endeudamiento Externo o Avales y Garantías”) which correspond to international investments and foreign indebtedness operations they have channeled through the compensation account; and (iii) on a quarterly basis and according to the calendar established in Resolution 9147 of 2006 issued by the DIAN, these companies must also deliver to said entity a report informing certain debits and credits of the compensation account.
• Branches of the special foreign exchange regime, recipients of foreign investment,
must file Form No. 13 of the Central Bank. The form must be filed within six (6) months following the fiscal period ended on December 31st. This, to maintain: (i) updated the information of their foreign investment and (ii) register the direct investment in the supplementary capital of the branch. This term may not be extended.
Tax obligations • Resident entities and resident individuals are subject to the income tax and
complementary taxes on their Colombian sourced income and capital gains and on their foreign-sourced income and capital gains.
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• An entity is deemed as a resident for tax purposes if one of the following conditions is met: (i) the effective place of management is in Colombia; (ii) the principal domicile is in Colombia; or (iii) it is organized under the Colombian law. • An individual is deemed as a resident for tax purposes, among other cases, if they remain in Colombia for more than one hundred eighty-three (183) consecutive or non-consecutive days during any period of three hundred sixty-five (365) continuous days.
• Resident entities and resident individuals deemed as income taxpayers are entitled to use a tax credit equivalent to the foreign tax paid on the foreignsourced income, up to the amount of the income tax payable in Colombia on such foreign-sourced income.
• Permanent establishments of individuals, companies or foreign entities, located in
the country (i.e., branches) are subject to the income tax regarding the worldwide income and capital gains attributable to the permanent establishment (modified by Law 2010 of 2019).
• Non-resident entities and non-resident individuals are taxed on the Colombian
income and capital gains. They are not required to file an income tax return in Colombia if all their income was subject to the withholdings provided in articles 407 to 411 of the Tax Code.
• The taxable year is the calendar year. Income tax rates
• The income tax rate for domestic companies, permanent establishments and foreign legal entities with or without residence in the country obliged to file an annual tax declaration is 32% for 2020, 31% for 2021 and 30% from 2022.
• Financial Institutions with taxable base equal or greater than one hundred and twenty thousand (120,000) Tax Value Units (“TVU”) (Approximately COP $4.272.000.000) must pay an income tax surcharge as follows: (i) 4% for the fiscal year 2020 (total tax rate of 36%) (ii) 3% for the fiscal year 2021 (total tax rate of 34%), (iii) 3% for fiscal year 2022 (total tax rate of 33%). This Surcharge must be pre-paid every year.
• Income derived from the provision of hotel services in new hotels or in hotels that are renewed and/or expanded, and income derived from new theme park projects or in theme parks that are renewed/or expanded, ecotourism and agritourism parks and waterfront docks, with the compliance of certain requirements, will be taxed at a 9% tax rate.
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• A 20% income tax rate applies to legal entities qualified as free trade-zone users. • Individuals or entities liable to file an income tax return in Colombia calculate
the income tax on the higher base between the ordinary net income and the presumptive income.
• As per Law 2010 of 2019, the rate for the calculation of the presumptive income will be reduced to 0.5% in 2020, and to 0% from 2021.
Taxation on dividends
• Law 2010 of 2019 introduced changes to the taxation on dividends. - Dividends paid out of profits subject to income tax at the distributing company level: (i) should be taxed at a 7.5% tax rate via withholding if they are distributed to a resident entity. Note that this tax is only applied to the resident entity that receives the dividends for the first time and that it is can be credited by the resident individual or foreign investor, (ii) should be taxed via withholding at a 0% or 10% tax rate (depending on the amount of the dividend) if they are distributed to resident individuals, (iii) should be taxed at a 10% tax rate via withholding if they are distributed to permanent establishments of non-resident entities, (iv) should be taxed at a 10% tax rate via withholding if they are distributed to non-resident entities or non-resident individuals. º Dividends distributed within companies that are part of a business group or between companies that have a control situation which is duly registered with the Chamber of Commerce (“Cámara de Comercio”) will not be subject to the withholding provided in paragraph (i) above (7.5%). º Companies under the Holding Company Regime are not subject to withholding on dividends distributed by companies in Colombia. - Dividends paid out of profits not subject to tax at the corporate level : (i) should be taxed at the general income tax rate and subject to a 20% withholding if they distributed to a resident entity, without prejudice to the abovementioned 7.5% withholding which should apply on the net basis after the general income tax rate is applied, (ii) should be taxed at the general income tax rate if distributed to resident individuals, without prejudice to the withholding abovementioned 0% or 10% withholding (depending on the amount of the dividend) which should apply on the net basis after the general income tax rate is applied, (iii) should be taxed at the general income tax rate if distributed to permanent establishments of nonresident entities, without prejudice to the 10% withholding which apply on the net basis after the general income tax rate is applied, or (iv) should be taxed at the general income tax rate if distributed
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to non-resident entities and non-resident individuals, without prejudice to the 10% withholding which should apply on the net basis after the general income tax rate is applied. Deadlines • Decree 2345 of December 23,2019, that modifies the Tax Decree 1625 of 2016, sets the filling dates, and payment of the installments of national taxes for 2020. The deadlines to file the income tax return of the taxable year 2019 to be submitted in 2020 are the following:
Major Taxpayers LAST DIGIT OF THE TAX ID
PAYMENT FIRST INSTALLMENT
TAX RETURN FILING AND PAYMENT SECOND INSTALLMENT
PAYMENT THIRD INSTALLMENT
0 9 8 7 6 5 4 3 2 1
February 11th February 12th February 13th February 14th February 17th February 18th February 19th February 20th February 21st February 24th
April 14th April 15th April 16th April 17th April 20th April 21st April 22nd April 23rd April 24th April 27th
June 9th June 10th June 11th June 12th June 16th June 17th June 18th June 19th June 23rd June 24th
Legal entities and other entities Tax Return Filling and First Installment LAST DIGIT OF THE TAX ID
TAX RETURN FILING AND PAYMENT FIRST INSTALLMENT
96 to 00 91 to 95 86 to 90 81 to 85 76 to 80 71 to 75 66 to 70 61 to 65 56 to 60 51 to 55
April 14th April 15th April 16th April 17th April 20th April 21st April 22nd April 23rd April 24th April 27th
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LAST DIGIT OF THE TAX ID
46 to 50 41 to 45 36 to 40 31 to 35 26 to 30 21 to 25 16 to 20 11 to 15 06 to 10 01 to 05
TAX RETURN FILING AND PAYMENT FIRST INSTALLMENT
April 28th April 29th April 30th May 4th May 5th May 6th May 7th May 8th May 11th May 12th
Legal entities and other entities Second Installment LAST DIGITS OF THE TAX ID
PAYMENT SECOND INSTALLMENT
0 9 8 7 6 5 4 3 2 1
June 9th June 10th June 11th June 12th June 16th June 17th June 18th June 19th June 23rd June 24th
Individuals Tax Return Filling and single payment
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LAST DIGITS OF THE TAX ID
DUE DATE
99 and 00
August 11th
97 and 98
August 12th
95 and 96
August 13th
93 and 94
August 14th
91 and 92
August 18th
89 and 90
August 19th
87 and 88
August 20th
85 and 86
August 21st
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LAST DIGITS OF THE TAX ID
DUE DATE
83 and 84
August 24th
81 and 82
August 25th
79 and 80
August 26th
77 and 78
August 27th
75 and 76
August 28th
73 and 74
August 31st
71 and 72
September 1st
69 and 70
September 2nd
67 and 68
September 3rd
65 and 66
September 4th
63 and 64
September 7th
61 and 62
September 8th
59 and 60
September 9th
57 and 58
September 10th
55 and 56
September 11th
53 and 54
September 14th
51 and 52
September 15th
49 and 50
September 16th
47 and 48
September 17th
45 and 46
September 18th
43 and 44
September 21st
41 and 42
September 22nd
39 and 40
September 23rd
37 and 38
September 24th
35 and 36
September 25th
33 and 34
September 28th
31 and 32
September 29th
29 and 30
September 30th
27 and 28
October1st
25 and 26
October 2nd
23 and 24
October 5th
21 and 22
October 6th
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LAST DIGITS OF THE TAX ID
DUE DATE
19 and 20
October 7th
17 and 18
October 8th
15 and 16
October 9th
13 and 14
October 13th
11 and 12
October 14th
09 and 10
October 15th
07 and 08
October 16th
05 and 06
October 19th
03 and 04
October 20th
01 and 02
October 21st
Equity Tax
• By means of Law 2010 of 2019, a new equity tax was created, caused exclusively
on January 1, 2020 and January 1, 2021. The main characteristics of this tax are the following:
• The Equity Tax is generated by the possession of equity on January 1, 2020, with a
value equal or greater than COP $5.000.000.000 (Approximately USD $1,600,000) For these purposes the term “equity” is understood as the gross assets of the taxpayer-owned on January 1, 2020, minus the liabilities on that date.
• The taxpayers of the equity tax are the following: (i) individuals and inheritances deemed as income or income replacement schemes taxpayers, (ii) local or
foreign individuals that are not residents in Colombia with respect to their equity in Colombia owned directly or indirectly (through permanent establishments), (iii) inheritances of non-resident individuals at the time of their death regarding their assets owned in the country, and (iv) foreign companies or entities that are not deemed as income taxpayers in Colombia and that hold property located in Colombia, different from shares, accounts receivables and / or portfolio investments, such as real estate, yachts, boats, art pieces, aircraft or mining or oil rights.
• The taxable base for the equity is the net assets, of 2020 and 2021. • It is possible to exclude from the taxable base, the following assets: (i) the first
thirteen thousand five hundred (13.500) TVU of the equity value of the house or apartment; (ii) 50% of the equity value of the assets subject to the normalization tax that was declared in 2019 and repatriated to the country permanently, and
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(iii) 50% of the equity value of the assets subject to the normalization tax that are declared in 2020 and repatriated to the country permanently.
• The tax rate is 1%. • To date, the Colombian Government has not established the deadlines to file and pay the equity tax.
Complementary normalization tax
• Law 2010 of 2019 created for the year 2020 a normalization tax, which is
complementary to the income tax and to the equity tax, whose taxpayers are those income or income replacement schemes taxpayers who have hidden assets or have declared non-existent liabilities.
• This tax is generated by the possession of hidden assets or non-existent liabilities as of January 1, 2020.
• Its taxable base is the historical fiscal cost of the hidden assets or the commercial
appraisal established by the taxpayer with technical support, which must correspond at least to the value of the fiscal cost of the hidden assets. In the case of non-existent liabilities, the taxable base will correspond to its fiscal value or the one reported in the last income tax statement.
• The tax rate is 15%. If missing resources abroad are repatriated to Colombia and invested in the country for at least two years, the tax rate will be reduced to 7,5%.
• The normalization tax will be declared and paid in an independent statement that can be submitted until September 25, 2020.
• Additionally, Law 2010, 2019 includes a “Regularization of Assets” under which
income taxpayers who have included their assets different from inventories for a value below of the market value, are able to update their value by including additional sums as a taxable base of the normalization tax.
• Law 2010 of 2019 establishes that the provisions of the normalization tax created in Law 1943 of 2018 will continue to apply to taxpayers who submitted to this tax.
Annual report of assets possessed abroad
• Incorporated by Law 1739 of 2014. • As of 2015, income taxpayers who are subject to this tax regarding their local and
their foreign net worth and their local and foreign source income, are required to file an “annual return of foreign assets” in order to report them to Colombian Tax Authorities. The information to be provided by the taxpayers includes the jurisdiction where the assets are located and their equity value. 17
• Law 2010 of 2019 established that the obligation of present the report of asset possessed abroad is applicable when the equity value of the assets abroad exceeds two thousand (2.000) TVU (Approx. COP $71.000.000, TVU 2020) on January 1st each year.
• It has a reporting nature. • The deadlines to file assets possessed abroad are as follows: Major Taxpayers LAST DIGIT OF THE TAX ID
DUE DATE
0 9 8 7 6 5 4 3 2 1
April 14th April 15th April 16th April 17th April 20th April 21st April 22nd April 23rd April 24th April 27th
Legal entities LAST DIGITS OF THE TAX ID
DUE DATE
96 to 00 91 to 95 86 to 90 81 to 85 76 to 80 71 to 75 66 to 70 61 to 65 56 to 60 51 to 55
April 14th April 15th April 16th April 17th April 20th April 21st April 22nd April 23rd April 24th April 27th
46 to 50 41 to 45 36 to 40 31 to 35 26 to 30 21 to 25 16 to 20 11 to 15 06 to 10 01 to 05 18
April 28th April 29th April 30th May 4th May 5th May 6th May 7th May 8th May 11th May 12th www.gomezpinzon.com
Individuals LAST DIGITS OF THE TAX ID
DUE DATE
99 and 00 97 and 98 95 and 96 93 and 94 91 and 92 89 and 90 87 and 88 85 and 86 83 and 84 81 and 82
August 11th August 12th August 13th August 14th August 18th August 19th August 20th August 21st August 24th August 25th
79 and 80 77 and 78 75 and 76 73 and 74 71 and 72 69 and 70 67 and 68 65 and 66 63 and 64 61 and 62 59 and 60 57 and 58 55 and 56 53 and 54 51 and 52 49 and 50 47 and 48 45 and 46 43 and 44 41 and 42 39 and 40 37 and 38 35 and 36 33 and 34 31 and 32 29 and 30 27 and 28 25 and 26 23 and 24 21 and 22
August 26th August 27th August 28th August 31st September 1st September 2nd September 3rd September 4th September 7th September 8th September 9th September 10th September 11th September 14th September 15th September 16th September 17th September 18th September 21st September 22nd September 23rd September 24th September 25th September 28th September 29th September 30th October 1st October 2nd October 5th October 6th
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LAST DIGITS OF THE TAX ID
DUE DATE
19 and 20 17 and 18 15 and 16 13 and 14 11 and 12 09 and 10 07 and 08 05 and 06 03 and 04 01 and 02
October 7th October 8th October 9th October 13th October 14th October 15th October 16th October 19th October 20th October 21st
Transfer Pricing
• Income taxpayers who conduct transactions with foreign related parties must comply with the transfer pricing regime.
• Income taxpayers with gross assets on the last day of the year equal to or greater than one hundred thousand 100.000 TVU (COP $3.427.000.000 , TVU 2019.) or with gross income in the year equal to or greater than sixty-one thousand (61.000) TVU (COP $2.090.470.000, TVU 2019) shall comply with the following obligations (i) file the transfer pricing return for information purposes; and (ii) submit and send the transfer pricing documentation, that must include a master file with global information of the multinational group (“MNE Group”) and a local file with the information of each operation.
• There will be no need to prepare and send the supporting documentation (local
file and master file) when by “type” of transaction the corresponding transaction does not exceed the equivalent to forty-five thousand (45,000) TVU (COP $1.544.150.000 TVU 2019).
• Taxpayers who follow certain requirements (i.e., consolidated revenues equal to
or greater than 81.000.000 TVU) shall file a Country by Country (CbC) Report with information related to the global allocation of income and taxes paid by the MNE Group including certain activity indicators.
• Transactions conducted by taxpayers with individuals or entities located, domiciled in non-cooperative jurisdictions, in jurisdictions of low or zero taxation or subject to special tax regimes, or residents thereof, (as defined in Article 260-7 ET) must comply with transfer pricing regime, fulfill the transfer pricing return for information purposes and present the transfer pricing documentation.
• If these operations are carried out with related residents or domiciled in this type
of jurisdictions, in addition to the above, the functions performed, the assets employed, the risks assumed and all the costs and expenses incurred by the
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company located, resident or domiciled in this type of jurisdictions must be documented and demonstrated in detail.
• Taxpayers subject to transfer pricing rules may enter into Advanced Pricing Agreements (APA) with the tax authorities.
• Non-compliance with transfer pricing obligations may involve the application of sanctions.
• This regime was regulated by Decree 2120 of December 15, 2017 incorporated into the Tax Decree 1625 of 2016
• The deadlines to submit the transfer pricing return for information purposes and the transfer pricing documentation for 2020 are the following:
Transfer Pricing Return for Information Purposes LAST DIGIT OF THE TAX ID
DUE DATE
0 9 8 7 6 5 4 3 2 1
July 7th July 8th July 9th July 10th July 13th July 14th July 15th July 16th July 17th July 21st
Transfer Pricing Documentation LAST DIGIT OF THE TAX ID
DUE DATE
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July 7th July 8th July 9th July 10th July 13th July 14th July 15th July 16th July 17th July 21st
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Master File LAST DIGIT OF THE TAX ID
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July 10th July 11th July 14th July 15th July 16th July 17th July 18th July 21st July 22nd July 23rd
• The deadlines for submission of the Country by Country report in the year 2020 are as follows:
Country by Country Report: LAST DIGIT OF THE TAX ID
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December 10th December 11th December 14th December 15th December 16th December 17th December 18th December 21st December 22nd December 23rd
Value Added Tax (VAT)
• The Value Added Tax (VAT) in Colombia levies, among other events: (i) the sale of tangible movable and immovable goods, except for those excluded; (ii) the sale or transfer of rights over intangible assets only industrial property-related; (iii) the
provision of services within Colombian territory or from abroad, except for those excluded; (iv) the import of tangible goods except for those excluded and (v) the circulation, sale or operation of games of chance, except for the lotteries and games of chance operated exclusively online.
• Licensing agreements and contracts authorizing the use and exploitation in any
manner of intangible assets, and services executed abroad for users located in Colombia, are considered services rendered inside Colombian territory which trigger VAT under the general rules.
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• The DIAN through Resolution 000051 of October 19, 2018, regulated the procedure
applicable to the service providers from abroad to comply with the formal VAT obligations as taxpayers (liable to declare and pay VAT) when contracting with persons not liable to perform the withholding set forth in numeral 3 of article 437-2 of the Tax Code.
• The general VAT rate is 19%. • The taxable period is bimonthly or quarterly. • Law 2010 of 2019 established a VAT compensation in favor of the most vulnerable population and a special exemption from Value Added Tax (three days a year). Both are pending for regulation by the Tax and Customs Authority (DIAN).
• The following are the deadlines to submit the VAT return: Bimonthly Tax Return Filling and Installments LAST DIGIT OF THE TAX ID
JANUARY-FEBRUARY 2020
MARCH-APRIL 2020
MAY-JUNE 2020
0 9 8 7 6 5 4 3 2 1
March 10th March 11th March 12th March 13th March 16th March 17th March 18th March 19th March 20th March 24th
May 12th May 13th May 14th May 15th May 18th May 19th May 20th May 21st May 22nd May 26th
July 7th July 8th July 9th July 10th July 13th July 14th July 15th July 16th July 17th July 21st
LAST DIGIT OF THE TAX ID
JULY-AUGUST 2020
SEPTEMBER-OCTOBER 2020
NOVEMBER-DECEMBER 2020
0 9 8 7 6 5 4 3 2 1
September 8th September 9th September 10th September 11th September 14th September 15th September 16th September 17th September 18th September 21st
November 10th November 11th November 12th November 13th November 17th November 18th November 19th November 20th November 23th November 24th
January 13th January 14th January 15th January 18th January 19th January 20th January 21st January 22nd January 25th January 26th
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Quarterly Tax Return Filling and Installments LAST DIGIT OF THE TAX ID
JANUARY-APRIL 2020
MARCH-AUGUST 2020
SEPTEMBERDECEMBER 2020
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May 12th May 13th May 14th May 15th May 18th May 19th May 20th May 21st May 22nd May 26th
September 8th September 9th September 10th September 11th September 14th September 15th September 16th September 17th September 18th September 21st
January 13th January 14th January 15th January 18th January 19th January 20th January 21st January 22nd January 25th January 26th
Bimonthly Tax Return Filling and Payment of the VAT Service providers from abroad Regardless of the last digit of the Tax ID TAXABLE PERIOD
DEADLINE
January - February 2019 March - April 2019 May - June 2019 July - August 2019 September - October 2019 November - December 2019
March 13th, 2020 May 15th, 2020 July 17th, 2020 September 17th, 2020 November 18th, 2020 January 15th, 2021
National Consumption Tax
• Incorporated by Law 1607 of 2012, as of January 1, 2013. • The national consumption tax levies the provision or sale to the final consumer or the importation by the final consumer of the following goods and services: (i) the provision of mobile phone service, internet, and mobile navigation, (ii) the sale of some movable tangible property of domestic production or imported, (iii) food
and beverages services prepared in restaurants, cafeterias, self-service stores, ice cream parlor, and bakeries for home and on-site consumption, food services under contract, including catering service and the sale of food and alcoholic beverages for consumption inside bars and discos. This tax will not apply to the activities of the sale of drinks and meals under franchise.
• The national consumption tax returns are filed on a bimonthly basis. • The Tax Rates are 4%, 8% or 16%.
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• Law 2010 of 2019 eliminate as a taxable event of the Consumption Tax, the sale of real estate.
• The following are the deadlines to submit the National Consumption Tax return: Bimonthly Tax Return Filling and Installments LAST DIGIT OF THE TAX ID
JANUARY-FEBRUARY 2020
MARCH-APRIL 2020
MAY-JUNE 2020
0 9 8 7 6 5 4 3 2 1
March 10th March 11th March 12th March 13th March 16th March 17th March 18th March 19th March 20th March 24th
May 12th May 13th May 14th May 15th May 18th May 19th May 20th May 21st May 22nd May 26th
July 7th July 8th July 9th July 10th July 13th July 14th July 15th July 16th July 17th July 21st
LAST DIGIT OF THE TAX ID
JULY-AUGUST 2020
SEPTEMBER-OCTOBER 2020
NOVEMBER-DECEMBER 2020
0 9 8 7 6 5 4 3 2 1
September 8th September 9th September 10th September 11th September 14th September 15th September 16th September 17th September 18th September 21st
November 10th November 11th November 12th November 13th November 17th November 18th November 19th November 20th November 23rd November 24th
January 13th January 14th January 15th January 18th January 19th January 20th January 21st January 22nd January 25th January 26th
Simple Unified Tax
• Law 2010 of 2019 created from January 1, 2020, “an optional taxation model which is an integrated tax, generated annually and of a bimonthly payment”. This Unified Tax Regime replaces the income tax, the consumption tax, and the industry and commerce tax.
• It aims to reduce informality.
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• The DIAN may register taxpayers who did not comply with the obligation of
submitting the income tax, value-added tax, consumption tax or industry and commerce tax in their RUT ex officio.
• Taxpayers under this regime must make contributions to the General Pension System and will be exempted from the parafiscal contributions as provided for in Section 114-1 of the Tax Code.
• The following may be taxpayers of the Simple Unified Tax: - Individuals who develop a business, or legal entity whose shareholders are resident individuals. - Those who in the preceding year obtained gross ordinary or extraordinary income under eighty thousand (80.000) TVU (COP $2.848.560.000 TVU 2020). - If one of the shareholders as an individual has one or several enterprises or participates in several companies registered in the Unified Tax Regime, the threshold of gross income will be reviewed in a consolidated manner and in proportion to its participation in such enterprises or companies. -
If one of the shareholders as an individual has a participation of more than 10% in one or several companies that are not registered in the Unified Tax Regime, the threshold of gross income will be reviewed in a consolidated manner and in proportion to its participation in such enterprises or companies.
- If one of the shareholders is the manager of other enterprises or companies, the threshold of gross income will be reviewed in a consolidated manner with those enterprises or companies that it manages. -
The individual or legal entity must be up to date with its national and territorial tax obligations and with the contributions to the Social Security System. In addition, it must comply with the registration in the Tax ID Registry, electronic signature and electronic invoicing mechanism.
• The following, among others, are not able to apply the Unified Tax Regime: (i) foreign entities or their permanent establishments, (ii) non-resident individuals or their permanent establishments, (iii) affiliates, subsidiaries, agencies, branches of national or foreign entities or of non-resident individuals.
• The taxable base is the ordinary and extraordinary gross income received during the taxable year.
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• Taxpayers who choose to benefit from this scheme must adopt the electronic invoice system within two months of their registration in the National Tax Registry (RUT).
• The applicable tax rate depends on the total amount of gross income and the activity developed.
Relevant Information Filed Electronically
• Resolution 011004 of October 29, 2018 issued by the DIAN, establishes who is
required to electronically file relevant information for the fiscal year 2019, including its content, its characteristics and the filing due dates in 2020.
• Resolution 000070 of October 28, 2019 issued by the DIAN, establishes who is
required to electronically file relevant information for the fiscal year 2020, including its content, and its characteristics.
• The following are the due dates of 2020 according to Resolution 011004 of 2018: Major Taxpayers LAST DIGIT OF THE TAX ID
DUE DATE
0 9 8 7 6 5 4 3 2 1
April 28th, 2020 April 29th, 2020 April 30th, 2030 May 4th, 2020 May 5th, 2020 May 6th, 2020 May 7th, 2020 May 8th, 2020 May 11th, 2020 May 12th, 2020
Entities and Individuals LAST DIGITS OF THE TAX ID
DUE DATE
96 to 00 91 to 95 86 to 90 81 to 85 76 to 80 71 to 75 66 to 70 61 to 65
May 13th, 2020 May 14th, 2020 May 15th, 2020 May 18th, 2020 May 19th, 2020 May 20th, 2020 May 21st, 2020 May 22nd, 2020
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LAST DIGITS OF THE TAX ID
DUE DATE
56 to 60 51 to 55
May 26th, 2020 May 27th, 2020
46 to 50 41 to 45 36 to 40 31 to 35 26 to 30 21 to 25 16 to 20 11 to 15 06 to 10 01 to 05
May 28th, 2020 May 29th, 2020 June 1st, 2020 June 2nd, 2020 June 3rd, 2020 June 4th, 2020 June 5th, 2020 June 8th, 2020 June 9th, 2020 June 10th, 2020
Withholding Tax
• Those who intervene in acts or operations, in which they must withhold taxes by an express legal provision, must carry it out, submit the tax withholding declarations and deposit the collected funds.
• The deadlines for filing withholding tax returns and self-withholdings are set in Decree 2345 of December 23, 2019, which modifies Decree 1625 of 2016.
Municipal Taxes Industry and Commerce Tax (ICA)
• Individuals, legal entities and de facto companies who carry out industrial,
commercial or service activities within a municipal jurisdiction in Colombia, either directly or indirectly, permanently or occasionally, are subject to industry and commerce tax.
• Taxpayers must fill de Tax Return and pay. • Those who are withholding agents must comply with their obligations. Property Taxation
• Tax ownership of real state. • Taxpayers must pay this tax annually.
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Special Tax Regime • Special Tax Regime taxpayers must update the web page referred in article 364-5
of the Tax Code within the following deadlines at the latest on March 31, 2020, regardless of the last digit of the Tax ID number.
• The financial report referred to in Article 356-3 of the Tax Code must be submitted on March 31, 2020 at the latest, regardless of the last digit of the Tax ID number.
Miscellaneous matters • Persons or entities that must register in the RUT: in accordance with article 1.6.1.
2.6. of the Tax Decree 1625 of 2016, persons or entities deemed as taxpayers of national taxes, trusts (“Patrimonios Autónomos”) when expressly required, foreign investors liable to comply with formal duties, among others, are obliged to register in the National Tax Registry (“RUT”).
• Furthermore, as per article 1.6.1.2.1. of the Tax Decree 1625 of 2016 modified
by Decree 1415 of 2018, persons without residence or domicile in the country supplying services from abroad, that trigger the VAT, to persons who are not obliged to perform the withholding tax provided for in Article 437-2(3) of the Tax Code must be registered in the National Tax Registry.
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Labor Duties • On December 26, 2019 the National Government issued Decree 2360 of 2019 and increased the MLMW for 2019 by 6%, that is, COP $46.686. Thus, as of January 1, 2020, the MLMW increased up to COP $877,803.
• By means of Decree 2361 of 2019 the National Government set the transportation aid, which is given to employees who earn up to two (2) MLMW, to the monthly sum of COP $102.854.
• The monthly integral salary shall only be applicable to employees who earn more than 13 MLMW for 2020; that is to say, COP $11.411.439.
• The social security contribution base cannot be less than one (1) MLMW (COP $877.803), nor greater than twenty-five (25) MLMW (COP $21.945.075).
• Every employer must pay their employees 12% of legal interest on the balance of severance allowances up to December 31st of the previous year, no later than January 31st of the following year.
• Employers must deposit the accrued severance allowances up to December 31, 2019 in the severance allowances funds chosen by the employees before February 14, 2020.
• Employers must grant the employees a certificate of income and withholdings, no later than March 15, 2020.
• Pay the legal services bonus on the following dates: June 30th and December 20th, 2020.
• Provide employees who earn up to two (2) MLMW (COP $1.755.606) with a pair of
shoes and a set of work attire consistent with the job performed by the employee. It must be given three (3) times a year (April 30th, August 31st, and December 20th).
• Taxpaying companies shall be exempt from paying 8.5% of the contribution
destined to Social Security in health care, for employees that earn up to ten (10) MLMW (COP $8.778.030).
• Companies that hire employees who earn more than ten (10) MLMW, shall
continue to pay payroll tax and healthcare contributions on the same terms and conditions defined by Colombian labor law.
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• Register foreign employees before the Ministry of Labor in the Foreign Employee Registry (“Registro Único de Trabajadores Extranjeros en Colombia” – “RUTEC”) within one hundred twenty (120) calendar days following the date of employment and register any novelty within thirty (30) calendar days following its occurrence.
• Comply with the implementation of the Management, Security and Health in the
Workplace System (“Sistema de Gestión de Seguridad y Salud en el Trabajo” – “SGSST”), to attend verification visits by the Ministry of Labor.
Gómez-Pinzón Abogados S.A.S. will be pleased to complement any information contained herein at your request as well as to assist you in the fulfillment of the requirements described above. We hope that this information will be useful for your purposes. Should you need additional information, do not hesitate to contact us (parrazola@ gomezpinzon.com) or visit our webpage: www.gomezpinzon.com.
Regards, Gómez-Pinzón Abogados S.A.S.
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