In the Tax Reform Law, the National Government plans to make a series of adjustments to the different economic sectors, however, natural persons will not be alien to these changes in tax matters.
It may interest you: The tax reform will press people and companies stronger
According to the information embodied in this bill that already begins its process in the Congress of the Republic, changes in the income tax rate of natural persons are proposed.
According to the document, the income between 0 to 1,090 units of tax value (UVT), that is, between 0 and $ 54 million will have no increase in income tax, but of $ 54 million up to $ 84 million must pay a 19%rate.
That is, if a citizen has revenues of $ 4.5 million per month, which adding 12 months of the year gives an amount of $ 54 million, he must pay a 19% rate of the income tax.
But the change in taxation does not end in that ranks, since the tax will continue to increase, depending on the income, therefore, if it earns between $ 84 million to $ 204 million, it will have to pay 29%, between $ 204 million and $ 431 million must pay 35%, Between $ 431 million and $ 944 million must pay 37%.
This will continue to increase for revenues between $ 944 million and $ 1.5 billion will have a rate of 39% and higher than this amount must pay 41%.
“The 28% rate goes to 39%, that of 33% to 35%, that of 35% to 37%, that of 37% to 39% and that of 39% to 41%. At the end of the day, those that generate the highest income, in their progressive and marginal rate they will pay more, which generates greater pressure to the passive income to end in a higher way,” Andrés Durán said, tax lawyer and CEO of Duranwealth.
Tax Reform was filed before the Congress of the Republic.
Courtesy: Istock
What will happen to other taxes?
In this tax reform of 94 items, it is also planned to impose greater tax burden for dividends. Here the income tax rate corresponding to dividends or shares received by companies or other foreign entities without principal domicile in the country, by natural persons without residence in Colombia and for ilíchids of causes who were not residents in Colombia which would reach 30%.
According to the tax lawyer in the case of dividends today there is a 19% discount for dividends greater than 1,090 UVTS, that is, approximately $ 54 million. With the reform, it is eliminated.
“Dividend taxation could reach 61%. That means that people who receive dividends would be taxed in general income rates, which are climbing up to 39%. But, in addition, dividends have an additional layer of tax (rate up to 20%). Adding both layers, effective taxation on dividends could reach up to 61.65%. In other words: the dividends would become one of the income more punished in Colombia”Said the expert.
In the case of occasional gain, the minimum term would rise from 2 to 4 years for the sale of assets, for example: a property is considered occasional gain. In addition, exempt income is reduced when they come due to inheritances. Selling assets or receiving an inheritance would be less efficient.
“The standard currently says that if you have a fixed asset, something that is not sold in the ordinary turn of the business and is transferred after two years, it is no longer an ordinary income, if not an occasional gain and the rate of occasional gains how much is 15%, what they raise in this reform is that they are not two years if they are four years particular”highlighted the expert.
And finally, in the Patrimony Tax the threshold would go down: from $ 2 billion it would begin to be paid. Progressive rates: 0.5%, 1%, 2%, 3%and up to 5%. Families with middle and high assets would have a significant and permanent additional load.
“The most sensitive and worrying thing is that it would get off the $ 4,000 million, up to $ 2,000 million or so. Additionally, rates are increased today to 2% and would increase to 5% and those who have high assets, it is important that they begin to structure their assets,” Durán mentioned.
Tax Reform was filed before the Congress of the Republic.
Courtesy: Istock
What will happen to inflation?
In addition, the tax expert stressed that within this bill that seeks a collection of $ 26.3 billion the interest generated in bank accounts, CDT or fixed income funds had a benefit and it was that the taxes of these investment vehicles were subtracted from inflation. However, it made it clear that this changes with the reform, since more taxes would be paid for these investments.
Recommended: The tax reform will press people and companies stronger
“When invested in particularly fixed income CDT´s, high -performance accounts or collective investment funds in fixed income, there is a tax benefit and it is the inflation component. A part of the yields that correspond to inflation is not taxed, what does it are that taxation in financial yields in an important way in an important way”Said the expert in tax matters.
Leidy Julieth Ruiz Clavijo
Portfolio journalist
