(Levy rent or levy occasional income less $38.812.000) *19% The applicable progressive tax rates to individuals deemed as tax residents are as follows: If the expatriate is a resident their labor income will be liable for tax at the progressive rates from 0 percent to 39 percent in accordance with the table determined by law.Īny tax withheld will be considered in the calculation of the final tax liability.If the expatriate is a non-resident, 20 percent of total monthly compensation should be withheld.On 1 February 2021, the government will announce the applicable rate for the next month.Īll foreign nationals are required to obtain a National Identification Number (NIT) to be used in their tax affairs.Įmployers are obliged to withhold tax from expatriates’ earnings every month as follows: Failure to pay tax when due will result in a penalty and interest will accrue daily on any unpaid taxes at a rate of approximately 25 percent per annum (until 31 January 2021, for liabilities associated to FY2020). It is important to mention that if a foreign individual was subject to a withholding of 20 percent, would not be liable to file the Colombian income tax return.Īny outstanding tax must be paid at the time of filing the return. Taxpayers who are not resident for fiscal matters will have to pay the full current tax rate (35 percent for FY2020). The accumulated balance on banking accounts, savings, deposits or financial investments, during the taxable year that are higher than COP49,849,800.Credit card purchases or whole purchases during the taxable year that exceed COP49,849,800.All individuals whose income is higher than COP49,849,800, or whose gross equity is higher than COP160,231,500, within the respective tax year. Taxpayers who fulfill all the following conditions are liable to submit a tax return for FY2020. Failure to do so will result in a monthly penalty, payable in arrears, equal to 5 percent (for each month) of the outstanding tax, capped at 100 percent of the amount payable plus default interests. In general, an individual who have received income during the year, must submit a tax return if the income/value of their property is above a certain amount, after 31 December in any tax year.
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