Fiscal residence for foreigners in Colombia

Aug 2, 2019 | 2019

Are you a foreigner with permanence or making transactions in Colombia?

This information may concern you…

In order to avoid future contingencies before the Tax Administration, here are the criteria you should verify to see if you are obligated to fulfill the formal duty to declare income taxes in Colombia and not have to bear the risk of not complying with these obligations. Please note that on August 6th the deadlines to present and/or pay your income tax return begin.

In Colombia, both residents and non-residents must file income tax returns, as they meet some considerations.

How to know if you are a resident in Colombia for tax purposes?

A. If you are a foreigner, but between 2017 and 2018, you stayed continuously or intermittently for more than 183 days in Colombia, in a period of 365 days – for which we suggest you check your passport- you become a Colombian Fiscal Resident, independent of your origin country, and therefore, you will be required to submit the income tax return for the fiscal year 2018.

B. If you are Colombian and have been absent from the country, but meets at least one of the following points:

  • Between 2017 and 2018 you entered into the country and remained continuously or intermittently for more than 183 days, in a period of 365 days – for which we suggest you check your passport- you become a Colombian Fiscal Resident.
  • Your spouse or permanent partner (not legally separated) or under-aged dependent children, have a tax residence in Colombia.
  • Fifty percent (50%) or more of your income derives from a national source.
  • Fifty percent (50%) or more of your assets are managed in Colombia.
  • Fifty percent (50%) or more of your assets are understood to be possessed in Colombia.
  • Having been required by the Tax Administration for it, no proof of a foreign resident tax status is submitted.
  • Have a fiscal residence in a jurisdiction qualified by the National Government as a “tax haven”.

However, if you meet any of the above points, but at least one of the following 2 points applies to you, you will not be a Fiscal Resident.

  • That fifty percent (50%) or more of your annual income has its source in the jurisdiction in which you have your domicile.
  • That fifty percent (50%) or more of your assets are located in the jurisdiction in which you have your domicile.

What information should you report in your income tax declaration?

Under this Resident status, you will be required to report to the Tax Administration all information related to:

  1. Your assets (real estate, vehicles, bank accounts, investments, among others) owned both in Colombia and abroad.
  2. The income received in Colombia and abroad.

Note that, on the income declared abroad, you may allocate related costs and expenses considering the limits established in the tax regulations and deduct the tax paid abroad for that income.

And if according to the previous points I am not a Fiscal Resident, should I submit an income tax return?

If you are not a Fiscal Resident in Colombia, you must submit your income tax return, only informing the Tax Administration the following:

  1. Your assets (real estate, vehicles, bank accounts, investments, among others) owned only in Colombia.
  2. Only the income received in Colombia.

When all of the income received in Colombia was subject to withholding at source for payments abroad, you will not be required to file a declaration in Colombia.

When is my deadline to submit the income tax return?

This deadline depends on the last 2 digits of the NIT (Tax identification number) that has been assigned to you at the time of the RUT (Comprehensive Tax Registry) registration, starting on August 6 until October 17, 2019.

What happens if I don’t file the income tax return?

The tax authorities hae 5 years to investigate you and initiate a sanction process for not presenting the income tax declaration. Also, in accordance with the provisions of article 4348 of the Criminal Code, this could lead to a tax fraud crime.

What if I submit it after the deadline?

You will be subject to a penalty for extemporaneity calculated on the tax, income or assets, according to the case.

If you wish to make an appointment with our tax specialists, please contact Gabriela Ranowsky at asistentegerencia@isanin.com.co

Disclaimer: This general information is presented for illustrative purposes only and cannot be taken as a tax consultation. You should consult with a tax specialist before taking any decision regarding this matter.

Descargue en el siguiente link el PDF:

Circular – Comunicado Extranjeros_Obligación declaración de renta

IGNACIO SANÍN BERNAL & CÍA. ABOGADOS

Tel. (4) 2683434

Medellín, Antioquia

 Síganos en nuestras redes sociales de:

Twitter: @ISBabogados / @juansanin

Facebook: @ISBabogadosycontadores

 

 

Yearly

Otras publicaciones

2021, English

El provecho tributario inevitable

Artículo publicado el 26 de noviembre en Asuntos Legales del diario La República. Autor: Juan Esteban Sanín Gómez juan.sanin@isanin.com.co La Ley 2155 de 2021 (última reforma tributaria) introdujo un cambio sustancial en materia de transparencia fiscal en Colombia,...

2021, English

Proyecto “Ley de desconexión laboral”

Circular 18-11-2021 El proyecto denominado “Ley de Desconexión Laboral”, que pasará a conciliación y luego a sanción presidencial, define la desconexión laboral como el derecho que tienen todos los trabajadores y servidores públicos, a no ser contactados por...

2021, English

Autorización para “Giveaways”

Circular 10-11-2021 Autorización de Coljuegos para realizar juegos de suerte y azar con fines de publicidad o de promoción de bienes o servicios en los que se ofrecen premios al público sin que se solicite un pago para participar. En la actualidad es muy común...

2021, English

El dilema del beneficiario efectivo

Artículo publicado el 23 de octubre en Asuntos Legales del diario La República. Autor: Juan Esteban Sanín Gómez juan.sanin@isanin.com.co El concepto de beneficiario efectivo (“BE”), además de ser indispensable para combatir delitos transnacionales como el lavado de...

2021, English

Una reforma de beneficios y oportunidades

Artículo publicado el 30 de septiembre en Asuntos Legales del diario La República. Autor: Juan Esteban Sanín Gómez juan.sanin@isanin.com.co Puede afirmarse que la Ley 2155 de 2021 (Reforma Tributaria) trajo más beneficios fiscales y oportunidades que disposiciones...

2021, English

Piso de Protección Social: INEXEQUIBLE

Circular 09-09-2021 Mediante el artículo 193 de Plan Nacional de Desarrollo (2018-2022), el Presidente de la Republica reglamentó el acceso y operación del denominado Piso de Protección Social, en adelante “PPS”, para aquellas personas que mensualmente perciban...