With the beginning of 2023, the deadlines that Colombians and companies must take into account to comply with their tax obligations throughout the year are also guaranteed.
One of them has to do with withholding at source, which is not a tax but an advance collection of a specific tax. which may well be the income, sales or industry and commerce tax.
(Also read: Take note: these are the deadlines to declare and pay taxes in 2023)
Many people should keep in mind that, on certain occasions, when they receive an income or fee for a good or service, deduct a percentage called withholding at source.
According to article 383 of the Tax Statute, withholding at source for labor income is based on a tax base equal to or greater than 95 UVT (Tax Value Unit), that is, 4’029.140 pesos for 2023taking into account that for this year the UVT was set at 42,412 pesos.
Withholding at source begins when there is a transaction between a person, entity or company that pays for a good or service. For example, when paying a salary, the employer makes a withholding at source against the worker’s income. In other words, it’s like a advance payment of tax obligations of the taxpayers.
According to the Dian, those who are obliged to make the monthly declaration of withholding at the source are the people or companies classified as withholding agents. Among them are, for example, entities governed by public law, the mutual funds, stock funds, pension funds and disability, illiquid successions, among others.
Withholding agents are also employers and natural persons who have the quality of merchants. These have the obligations to carry out the withholding, declare the withholding at the source, consign the withheld, issue the corresponding certificates and keep the supports.
Another source of withholding is that made by banks to savings or checking accounts and which corresponds to the Tax on Financial Movements, better known by citizens as 4×1,000.
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A tax advance
Withholding at source allows the State collecting taxes before the deadlines that Colombians and companies have to pay their taxes each year begin.
While for taxpayers it means an opportunity to go little by little paying a tax and thus the balance to be paid will be less when the date to do so actually arrives.
Therefore, it is important, when filing the tax returns, to keep in mind all the withholdings at source that were made to you during the taxable year 2021 so that they are deducted from the balance to be paid.
Dates to declare the Withholding at Source
Withholding agents for Income Tax and/or Stamp Tax and/or Sales Tax -VAT must declare and pay modified withholdings and self-withholdings each month.
For this purpose, they must take into account the last digit of the NIT. The dates set for compliance with this obligation are:
• January: between the 7th and the 20th of February
• February: between March 7 and 21
• March: between April 10 and 21
• April: between May 9 and May 23
• Mayonnaise: between June 7 and 22
• June: between July 7 and 21
• July: between the 9th and the 23rd of August
• August: between the 7th and the 20th of September
• september: between October 10 and 24
• October: between November 8 and 22
• November: between December 11 and 22
• December: between January 10 and 23, 2024.
It is important to take into account that for withholding agents who were authorized the special term and who have more than 100 branches or agencies that practice withholding at source, there are the following terms:
• January: until February 23
• February: Until March 24
• March: until April 24
• April: Until May 26th
• Mayonnaise: until June 26
• June: until July 25
• July: until August 25
• August: until September 22
• september: until October 26
• October: until November 24
• November: until December 26
• December: until January 26, 2024