June 20, 2016
Tax Authority has recently stated that those required to keep accounting books in Colombia must update the Tax Registry with the purpose of stating: (i) the Accounting Group to which they belong and (ii) specify if the taxpayer use the tax book or if it use the mandatory registration system.
In accordance to the prior, the Tax Department of Dentons Cárdenas & Cárdenas offers assistance for all whom require updating the Tax Registry, in which case will be required to inform the following information:
i. The Accounting Group. The accountants of the respective entity may provide the information pertaining the groups.
In general terms, the entities that belong to group 1 are security issuers, entities and businesses of public interest, and entities that meet the following criteria: (i) have a work force greater than 200 workers or (i) total assets greater than 30.000 minimum monthly legal wages, and in any case, comply with all remaining conditions (carry out imports or exports that represent more than 50% of the total amount of purchases or respective sales)
Group 2 entities are those that do not meet the requirements to belong in Group 1 or Group 3.
Entities that belong to Group 3 must (i) have a work force of maximum 10 workers, (ii) total assets, excluding housing, less than 500 minimum monthly legal wages and (iii) gross annual income lower than 6.000 monthly legal wages. In the same way, entities that belong to the simplified regime of the VAT will also belong to Group 3.
ii. Inform if the entity uses the tax book or if it use the Mandatory Registration System. These methods identify the differences in applying the International Financial Reporting Standard –IFRS, in contrast to the values that will be used for tax purposes. This information must be provided by the accountants of respective the entity.