There is less and less time left for Colombians to make their respective income tax return before the National Tax and Customs Directorate (DIAN).
This process may be familiar to many people, but if you are not sufficiently clear about what you should take into account when doing this process, Santiago Rodríguez Raga, professor at the Faculty of Administration of the University of the Andes and expert in personal financesprovides some guidelines for those who will be submitting it for the first time or who are not clear about the information.
(Read also: Petro’s financing law: what it needs to be efficient and ideas to improve it).
How much should you pay?
Depending on your net income, there will be a tax rate to pay. Keep in mind that you must deduct from that rate the withholdings made during 2023 and the final balance is what you will have to pay this year on what happened during the previous year. The dates for filing income tax returns vary according to the last two digits of your ID number in an increasing manner (the range is between August 12 and October 24)..
Income tax return
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How do you know if you need to file?
To find out if you need to file a tax return in 2024, you just need to check if you are in any of these groups:
1. Gross assets: If the total value of your assets (house, car, bank accounts, investments, etc.) as of December 31, 2023 was greater than $190,854,000, you are required to file a tax return.
2. Gross income: If your total income during 2023 was greater than $59,377,000, you are required to file. This means that your average monthly income exceeded $4,900,000.
3. Credit card expenses: If the purchases made with your credit cards in 2023 exceeded $59,377,000, regardless of whether you were able to pay them or not, you must file a tax return.
4. Purchases and consumption: If the total value of your purchases and consumption during the year 2023 was greater than $59,377,000, you are required to file a tax return.
5. Financial movements: If the sum of your bank deposits, deposits or financial investments in 2023 exceeded $59,376,800, you must file an income tax return.
(Further: Warning of a billion-dollar hole in the General National Budget for 2025).
Income tax return
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If it’s your first time, what should you know?
Please note the documents you must have in advance. If you are a natural person and are a salaried employee, request in advance the certificate of income and withholdings issued by your employer. This document details the income and deductions you have with health and pension, as well as the value of the applied withholding..
On the other hand, if you have made investments (for example, a CDT) have the interest earned and the withholdings derived from it on hand. It may also include expenses such as housing interest, dependents, or AFC contributions or voluntary pensions..
If you are self-employed, include the contracts and supporting documents with the companies to which you have provided services during 2023. For equity purposes, it is important to take into account both your assets and your debts reported by banks.
(Further: Plan ahead: find out the deadline to file your income tax return, based on your ID number).
Should you do it alone or with the help of an accountant?
It is important to note that the DIAN provides a document with the information reported to you and is helpful in resolving your concerns. The Dian can also help you with the income tax return suggested by them. If you have problems relating the different aspects of your tax return, you can request the services of an accountant.
Income tax return
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What happens if you omit something in your tax return?
Please note that the DIAN has the right mechanisms to know your income and expenses. Hence, the exercise of the income tax declaration is a transparent and honest initiative in which a person presents the reality of his accounts and financial life. However, Through tax planning you can have supports or certificates that generate deductions and thus the payment of your income tax return can be lower..
If you are inaccurate in your return or do not file it, this means that you will ultimately not file your tax return on time and will have a penalty of around 5% of the final tax. If you were not accurate in the value of your income, You may have problems, since for the Dian the tax may be higher than what you are filing and this may lead to a penalty..
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