The withholding tax It is not a tax, but an anticipated collection of a specific tax. It may well be that of income, sales or industry and commerce.
(Read: Dian: your projections for tax collection and electronic invoicing).
It is important to keep in mind that when someone receives an income or fee for a good or service, They deduct a percentage known as withholding at source.
According to article 383 of the Tax Statute, withholding at source for labor income part of a tax base equivalent to or greater than 95 UVT (Tax Value Unit), that is, 4,029,140 pesos for 2023, taking into account that for this year the UVT was set at 42,412 pesos.
This occurs when there is a transaction between a person, entity or company that pays for a good or a service. For example, at the time of paying a salary, the employer is having a withholding at source regarding the worker’s income.
That is to say, it implies as an advance to the tax obligations of the taxpayers.
According to the Dian, those who are obliged to make the monthly declaration of withholding at the source are the persons or companies classified as withholding agents. Among them, for example, public law entities, investment funds, securities funds, retirement and disability pension funds, illiquid successions, among others, stand out.
(In addition: Taxes: this Friday is the deadline to pay the preferential ICA).
Along with this, employers and natural persons who are merchants are withholding agents. They have the obligation to make the withholding, declare the withholding at the source, consign the withheld, issue the corresponding certificates and keep the supports.
Likewise, another of the withholding sources is by banks to savings or current accounts and that corresponds to the Tax on Financial Movements, mbetter known by citizens as 4×1,000.
This mechanism serves for the State pTo collect taxes before the deadlines of Colombians begin and companies pay their assessments each year. On the taxpayers’ side, it is an opportunity to gradually pay a tax and thus the balance to be paid will be less when the date to do so actually arrives.
That is why it is key, when making tax returns, to take into account the withholdings at source that made during the previous taxable year to be deducted from the balance due.
(Keep reading: Taxes in Colombia: for whom they will increase and for whom they will decrease).
Dates to declare withholding at source
Withholding agents for Income Tax and/or Stamp Tax and/or Sales Tax -VAT must declare and pay the withholdings and self-withholdings made each month.
For this purpose, they must take into account the last digit of the NIT. The dates set for the fulfillment of this obligation are:
• January: between February 7 and 20
• February: between March 7 and 21
• March: between April 10 and 21
• April: between May 9 and 23
• May: between June 7 and 22
• June: between July 7 and 21
• July: between August 9 and 23
• August: between September 7 and 20
• September: between October 10 and 24
• October: between November 8 and 22
• November: between December 11 and 22
• December: between January 10 and 23, 2024.
It is important to take into account that for withholding agents who were authorized the special term and who have more than 100 branches or agencies that practice withholding at source, the following terms were established:
• January: until February 23
• February: until March 24
• March: until April 24
• April: until May 26
• May: until June 26
• June: until July 25
• July: until August 25
• August: until September 22
• September: until October 26
• October: until November 24
• November: until December 26
• December: until January 26, 2024
BRIEFCASE
