Legal Bulletin



Income tax withholding for new employees

DIAN Revenue Ruling No. 1145 of February 2ndst, 2016


In its revenue ruling, the Tax Authority clarifies that, in relation with those employees that have been recently hired and are considered as employees for tax purposes, the corresponding income tax withholding should be practiced.

It shall be considered that Section 2 of Decree 1070/2013 makes no distinction among individuals who work for the first time, and those individuals that have been previously working. In this regard, the Tax Authority concludes that the withholding should be practiced on the payment or crediting of accounts for labor income to any individual classified as an employee; regardless whether it is his/her first job.