1. A new system will automatically be introduced to refund tax resident individuals' income tax credits.
On July 30th, 2024, the DIAN issued Resolution 117 of 2024, which establishes the process for the automatic refund of income tax credits filed using Form 210.
It is important to mention that these refunds apply only to tax resident individuals who meet the criteria defined by the DIAN as follows: (i) the taxpayer has no outstanding debts with the tax administration, (ii) the return has been filed on time, and (iii) the Colombian Tax Registration (RUT) is updated.
Finally, the maximum amount subject to refund of the balance in favor must not exceed 40 TVU (Tax Value Unit) (Cop$1,882,600), and the tax administration has 15 business days to make the refund.
See:
https://jadelrio.com/storage/Boletines/Colombia/Resolucion2024.pdf
2. Modification of electronic billing resolution 165 of 2023.
Resolution 119 of July 30th, 2024 introduces relevant modifications to Resolution 000165 of 2023, which regulates the electronic invoicing system in Colombia. These modifications seek to optimize the implementation and operation of the electronic equivalent document and invoicing in general.
Among the most critical changes, the implementation period of the electronic equivalent document for public services, passenger transport tickets, and bank statements is extended, postponing the deadline to November 1st, 2024, In addition, 48 hours is established for issuers to generate and transmit electronic air transport tickets to DIAN for validation, considering the particularities of the global distribution system (GDS).
Likewise, the name of the "Equivalent document issued by cash registers with a P.O.S. system" is changed to "Electronic equivalent document cash register ticket with a P.O.S. system" to reflect the digital nature of these documents. Graphic representations of the electronic invoice can also include information in currencies and languages other than the Colombian peso and Spanish, provided the data is kept in the local currency and language.
This last point is one of the most relevant because it generated confusion for operations with foreign countries since it is a transaction in Colombian pesos and Spanish.
See:
https://jadelrio.com/storage/Boletines/Colombia/Resolucion2024.pdf
3. Fire service surcharge in Bogotá and its regulation
As we reported in tax bulletin #7 of July, the fire service surcharge was approved under Agreement 927. On August 15th, 2024, the Mayor's Office of Bogotá published Decree No. 279, which regulates the implementation of said surcharge in Bogotá.
Among the most relevant topics, we highlight:
(i) Implementation: Taxpayers with a bi-monthly declaration period: the surcharge will begin to apply from September 1st, 2024.
(ii) The surcharge will begin to apply on January 1st, 2025, for taxpayers with an annual declaration period.
(iii) Determination and penalties procedure: The fire service surcharge is complementary to the industry and commerce tax. Therefore, it will follow the same procedure, determination, and penalty rules that apply to this tax.
See:
https://jadelrio.com/storage/Boletines/Colombia/DocumentoAcrobat.pdf
4. Decree 1006 of 2024: Regulation of the Presumed Interest and Inflationary Component in the TC.
Decree 1006 of 2024 regulates several articles of the Tax Code related to presumed interest and the inflationary component.
This decree establishes that for the tax year 2024, the minimum annual yield for loans between companies and their partners will be 12.69%. In addition, the inflationary component of financial returns received by natural persons and illiquid estates not required to keep accounting records will be 66.71%, which will not constitute income or occasional gain.
The inflationary component for financial costs and expenses will be 34.40% and will not be deductible for debts in foreign currency. The decree also replaces and updates several articles of Decree 1625 of 2016 to reflect these changes and provide clarity in the application of tax regulations.
These adjustments are relevant for taxpayers, as they directly impact the determination of tax obligations in income tax and complementary taxes, especially about the treatment of interest and inflationary components in their financial operations.
See:
https://jadelrio.com/storage/Boletines/Colombia/DocumentoAcrobat.pdf
The content of this newsletter is merely informative, that´s why it cannot be used under any circumstances as advice on the matter described in it. If you need advice on any of the aspects discussed, our team of professionals will be willing to assist you. contacto@jadelrio.com
