There is no shortage of tax news – 2024-07-31 02:26:58

2024-07-31 02:26:58

In this article, we will address some of the most relevant tax developments that must be considered for the income tax return for the 2023 tax year for natural persons. Among these aspects, we highlight the new obligation to file income tax returns, the implementation of the new form 350 for withholdings at source, and the recent updates to electronic invoicing.

HUILA DAILY, TAX CONSULTATION

By: José Hilario Araque Cárdenas, tax advisor and consultant.

Juan Diego Araque Durán, lawyer specializing in tax law.

These modifications are the result of Law 2277 of 2022 and regulatory decrees 2229 and 2231 of December 2023, which will directly impact the process of preparing and filing tax returns starting in August 2024. Join us to break down each of these changes and understand how they can affect your tax obligations.

In this column, we will consider two or three additional aspects as tax novelties, which are:

1. THE INCOME TAX RETURNS FOR TAXABLE YEAR 2023 FOR NATURAL PERSONS ARE AGAIN
2. THE NEW FORM 350 FOR SOURCE WITHHOLDING DECLARATIONS BY WITHHOLDING AGENTS.
3. NEWS ON ELECTRONIC INVOICING

There are many relevant aspects that come to mind when preparing the income tax return for the taxable year 2023, because, we insist, it is the first declaration of this tax that reflects several effects of Law 2277 of 2022 and more now in August when the due date begins, for which, let us remind you again, that the national government since December of last year issued two regulatory decrees to be taken into account for the preparation of this declaration, and they are decrees 2229 and 2231 of December 22, 2023.

• Decree 2229 refers to the calendar of expirations of the different tax and information declarations throughout this year 2024 and obviously contemplates several topics inherent and pertinent to the different declarations.
• And Decree 2231 refers to nothing more and nothing less than the details of the effects of Law 2277 of 2022, especially in the determination of the taxable net income of the general schedule where income from work, capital and non-work are declared.

Do you know when it is appropriate to file your tax return voluntarily even if you are not required to file?

As this new season of filing income tax and complementary tax returns begins, many individuals are asking themselves:

1. Will this year 2023 force me to file an income tax return again? And he has in mind that the one for the taxable year 2022 was his first declaration filed because his neighbor is an accountant, he did the accounts for me and told me that he did oblige me, he prepared it for me and it was filed with the Dian.

• Others, or the vast majority, have no doubts because they have always filed tax returns because they are required to. They have assets and receive income.
• Others wonder what documents I should take to my accountant this year for the 2023 income tax return.

• Others know that they are not required to declare because they only have their small house, their car or their motorcycle and their income is low.

• Others know that they are not required to file a tax return, but they are aware that their employer or contractor made withholdings at source for their low income in 2023.

1. First of all, if you are going to file your tax return for the first time in the 2023 tax year, make sure to first register for your RUT, a process that will be carried out virtually on the Dian web platform.

• Get your electronic signature. This process is self-managed on the DIAN platform. It is a set of data that allows you to electronically sign a document, identifying the signer unequivocally within the DIAN electronic services. It is available to all users registered in the RUT.

• Get good advice and gather all the information necessary to support the statement.

• If you are not required to file income tax, we recommend that you do not file it because the tax regulations establish (Art. 594-2 ET) that tax returns filed by those not required to file will not produce any legal effect.

• However, Article 1 of Law 1607 of 2012, which amended Article 6 of the tax statute, established that natural persons residing in the country who have had withholdings made at source and who are not required to file an income tax and complementary tax return, may file it and it produces legal effects, which means that once the draft of the return is prepared, if it shows a balance in your favor, you can decide whether to file it or simply not to file it. If you do file it, you can even request a refund of the balance in your favor or leave it there alone to impute it to the income tax return you file the following year.

Clearly establish whether you meet the conditions to declare income and complementary tax for the 2023 tax year.

You may be interested in: Income tax returns for individuals for the 2023 tax year

THE NEW FORM 350 FOR SOURCE WITHHOLDING DECLARATIONS BY WITHHOLDING AGENTS.

With Resolution 31 of February 29, 2024, the DIAN prescribes form 350 “Declaration of withholdings at source” for compliance with tax obligations as of August 1, 2024. The three changes are the following:

1. Withholding from legal or natural person: Now the withholdings made to the legal or natural person must be separated or discriminated.
2. Purchases and sales: For withholdings on purchases of hydrocarbons, coal and other mining products, they were broken down into special boxes, as well as for self-withholdings for the same concepts.
3. Significant Economic Presence (SEP) for payments abroad: adds the figure of withholding for payments abroad to income tax payers with a significant economic presence in Colombia.

In addition to the three changes mentioned above, the DIAN system will record data sequentially, which will make it easier for users to complete the form. If users need to make corrections to declarations submitted before August 1, they must do so on the form for that period and not use the new version.

NEWS ON ELECTRONIC INVOICING.

The DIAN, through Concept 440011620 of June 13, 2024, makes an addition to the Unified Concept No. 0106 of August 19, 2022, on the obligation to invoice. This concept adds numeral 1.2.2.2 to descriptor 1.1.2 on “Subjects obliged to invoice.”

It indicates that all merchants must issue a sales invoice or equivalent document in all sales and service provision operations unless they are expressly exempted according to article 616-2 of the Tax Statute, article 1.6.1.4.3. of Decree 1625 of 2016 and article 8 of Resolution 000165 of 2023.

It also mentions that merchants are required to invoice, but those who are not responsible for VAT, INC (National Consumption Tax) for restaurants and bars or those who are contemplated in the exceptions of article 8 of Resolution 000165 of 2023 are excepted. Therefore, merchants who do not comply with these exceptions must issue a sales invoice or equivalent document in their transactions.

The opinions are the responsibility of the partners of Araque Asociados Tax and Legal Consultants. We base our opinions on the understanding of current regulations and knowledge of tax law, and may not be shared by the tax authorities. Contact us at www.araqueasociados.com Questions and suggestions at the following email: [email protected]. Personalized attention: Carrera 5 No. 14-32 offices 5, 7 and 8 Pasaje de la Quinta de Neiva, Huila, telephones 321 452 3315.

Among these aspects, we highlight the new obligation to file income tax returns, the implementation of the new form 350 for withholdings at source, and the recent updates to electronic invoicing.

You can read: Tax News