After several days of meetings throughout the week, this Friday, November 11, it was finally known the text of the conciliation between the Chamber and the Senate of the tax reform that will come into force next year. This will be voted on next week in Congress, and later it will pass to presidential sanction.
(See: Are there days without VAT? This was defined after tax reconciliation).
Although there were few points of difference, the conciliation brought several changes. In article 3, referring to dividends for natural persons, what was approved in the Chamber was accepted, which determines that the rate for withholding at source on these will be 15% from 1,090 UVT ($41 million), while in the Senate 20% was sought.
In the case of non-resident natural persons, on the contrary, the text of the Senate was accepted, which sets a rate of 20%, while the Chamber proposed 15%.
(See: Tax and Budget, Petro’s first achievements in his presidency).
Another very controversial point was article 9, which allowed exemption from the income to high pensions obtained abroad. In the Senate this was eliminated and that decision was adopted.
Versus the rental rate for legal entities it was left as it was approved in the Senate, at 35% as it currently is, despite the fact that a proposal had been approved in the Chamber so that SMEs would have a tax of only 30%. However, this proposal did not receive the endorsement of the Ministry of Finance.
(See: Tax: taxes that definitely fell from the reform).
With respect to jail time for evaders, the limit proposed by the Senate (3,000 UVT) was maintained to accept guarantees. In the Chamber the proposal started from 5,000 UVT.
Another issue that was questioned was the one referring to the taxation of churches, which proposed that they pay 20% of commercial income. The position of the Senate, which eliminated this point, was accepted.
Another change was in the digital tax, which accepted the Chamber’s decision. A) Yes, ‘online’ education services were excluded from the 3% income tax from 2024 and distance learning.
(See: Deficit and social spending?: what would the tax collection be used for?).
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