Individuals and companies are already paying more taxes on behalf of the tax reform which was produced last year for some 20 billion pesos for this 2023, the most ambitious goal in history.
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Under the motto ‘whoever has more, pays more’ there were several changes that requested to carry out the Government of Gustavo Petro, such as the new wealth tax or healthy and environmental taxes. Similarly, there were changes in terms of income both for individuals and for some sectors of the economy, such as oil and financial institutions.
These changes are added to the normal tax obligations that each person has to assume, such as property and vehicle taxes for this second semester. For this reason, experts like Angela Gonzalez, associate partner of EY Colombia, recommend determining in advance what must be paid to prepare the reports, comply with the established deadlines and reduce the probability of incurring certain penalties or interest for late filing.
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What is already being charged
While most of the changes in the reform are already being implemented, there are some that have not started yet. The exception is the cases in which the law expressly deferred its application, such as healthy taxes (which apply as of November 1, 2023) or the subjection of coal as a product taxed with the carbon tax ( which will be taxed with 25 percent of the value of the full rate from 2025).
Among those that are already being collected are the wealth tax, the stamp duty modifications and the sales tax (VAT) on some products that did not have it before.
First of all, citizens with assets of at least 3,053 million pesos are required to declare this new wealth tax. These taxpayers must pay the total value of the tax payable in two installments. The first was between May 9 and 23, and the second will be between September 7 and 20, 2023.
From January, stamp duty changes also began to be applied. The reform specified that the disposal of real estate whose transaction value exceeds 20,000 UVT (some 848 million pesos by 2023) will be subject to this tax at a marginal rate of 1.5 percent and when it exceeds 50,000 UVT ( 2,120 million pesos by 2023), of 3 percent.
In addition, it must be remembered that at the last minute VAT was applied to the tickets for admission to shows, such as bullfights, as well as the commercialization of companion animals, such as cats, dogs, rabbits or hamsters. According to the Dian, these modifications were applied from the first two months (January and March), while their declaration and payment was made in March.
Those that are paid in 2024
There is also another group of taxes that are already being applied, but that will be declared and paid next year. Among them is the national tax on single-use plastic products. This taxes containers, packaging and packaging and is equivalent to 1.9 pesos per gram of plastic used. It began to be applied since the entry into force of the law at the beginning of this year and its payment differs over time since the tax due dates of 2022 and 2023 will be paid in February 2024.
According to Daniel Mitchell, president of Acoplásticos, the union that brings together and represents companies in the plastic production chains, the fee is approximately equivalent to a 20-25 tax on plastic products, which, in turn, will represent an increase in the price of food, drink or cleaning or cleaning product that is packaged or packaged, which can be between 1 and 6 percent.
There is also the case of income tax and complementary tax on occasional earnings, as well as the modifications to the Simple Taxation Regime. In these cases, the changes apply during the tax year 2023 that is in progress, but your declaration is presented in the year 2024 as a general rule.
In the case of income, both individuals and companies had changes with the tax reform. Individually, the idea is that those who earn more than 10 million pesos pay more. This is due to the fact that the total amount that a person can be deducted at the time of making their declaration was limited.
In addition to it, dividends have rates ranging from 0 to 20 percent and occasional earnings (inheritances, sale of real estate,…), 15 percent, except for those from lotteries, raffles, bets and the like, which would be taxed at 25 percent.
Regarding withholding at source, the tax did not modify the general legal regulations; however, the Government issued Decree 0261 of February 24, 2023, in which self-withholding rates and withholding at source as income tax were modified.
In the case of companies, for example, oil companies, mining companies, financial institutions and hydroelectric companies have to settle additional points when they declare their income tax next year.
For example, it will be 5 points from 2023 to 2027 in the case of financial and insurance companies until it reaches 40 percent, and 3 from 2023 to 2026 (38 percent) for hydroelectric plants. in pacific, oil tankers and miners will have to pay a rental surtax that varies with the international price of the last 10 years.
The reform created a tax on industrially ultra-processed foods or those with a high content of added sugar, sodium or saturated fat. In addition to this is the tribute to sugary ultra-processed drinks that found the level of added sugar. All this will begin to be collected from November of this year.
It will be taxed from the mecato to the precooked arepas, cereal bars or meatballs. Neither will table chocolate, chocoramo, sausages, chocolate bars, chips, bananas, donuts or achiras escape taxes. As for beverages, soft drinks, malt-based liquids, tea-type, soft drinks, fruit juices and nectars, energy drinks and flavored waters, among others, are included.
ECONOMY AND BUSINESS