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CREATION OF THE SINGLE TAX FOR SMALL RETAIL BUSINESS

The single tax for small retail business was created in order to promote formal business and facilitate the compliance with the tax obligations

 

The single tax seeks to replace the income tax for individuals who obtain their income from informal activities (retail or hairdressing) and who voluntarily subject themselves to the regime of this new tax. The objective of this tax is to establish more beneficial rates and a simpler system for taxpayers.

The taxpayers of the single tax are individuals who meet the following conditions:

  • Have gross income, in the taxable year, equal or above 1400 UVT (COP$ 44,604,000) and less than 3500 UVT (COP$ 111,510,000)
  • To carry out their economic activity in an establishment with an area of ​​less than 50 square meters.
  • Be eligible to receive the Social Service of Supplemental Periodic Economic Benefits -BEPS.
  • Carry out as an economic activity in the field of retail or hairdressing as well as other beauty treatments.

The amount to be paid will depend on the gross income of the taxpayer, according to the categories defined in the law.

The single tax is included in Article 165 of Law 1819 of 2016.