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COLOMBIAN TAX ADMINISTRATION ISSUED THE UNIFIED REVENUE RULING FOR INDIVIDUAL’S TAX INCOME

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COLOMBIAN TAX ADMINISTRATION ISSUED THE UNIFIED REVENUE RULING FOR INDIVIDUAL’S TAX INCOME

Income tax

The Tax Administration referred to some aspects that individuals should take into account when preparing their income tax return under the new system of computation by categories

 

For the first time, in 2018 individuals must file their income tax return under the new system of computation by categories depending on the characterization of the item of income, introduced by the last tax reform. Under this new system, tax residents must classify their items of income in one of the following five (5) categories: labor income, pension income, capital income, non-labor income and income from dividends and participations.

In view of the doubts and concerns expressed by the taxpayers, regarding the new system, the Tax Administration issued the Revenue Ruling No. 0912 of 2018. Within the aspects clarified by the Administration are: i) the items of income that should be included in each of the categories; ii) tax benefits applicable to each category; iii) the applicable thresholds and requirements; and iv) the determination of the presumptive income, among others.

The due dates for individuals to file the income tax return will begin on August 9th and will go until October 1st.