How to know whether I must file an income tax return

The dates are approaching for individuals to file their income tax returns for taxable year 2017. Many people wonder how to know whether they must file an income tax return and how to do it.

Decree 1951 of 2017 determines the filing dates for tax returns in 2018. This decree modifies the Single Tax Decree as follows:

“Article 1.6.1.13.2.15. Income tax and complementary tax return for individuals and estates. For taxable year 2017, individuals and estates must file the income tax and complementary tax return under the schedular system, using the form prescribed by the Special Administrative Unit of the National Tax and Customs Directorate (DIAN), except for those identified in Article 1.6.1.13.2.7 of this Decree, as well as assets destined for special purposes by virtue of donations and modal assignments whose donees or assignees do not personally enjoy them, and non-resident individuals who obtain income through permanent establishments in Colombia.”

Who did not have to file an income tax return for 2017:

Gross assets on the last day of taxable year 2017 did not exceed 4,500 UVT ($143,366,000).

Gross income was less than 1,400 UVT, that is, $44,603,000.

Credit card consumption did not exceed 1,400 UVT, $44,603,000.

Total purchases and consumption did not exceed 1,400 UVT, $44,603,000.

The total accumulated value of bank deposits, deposits or financial investments did not exceed 1,400 UVT, $44,603,000.

Nevertheless, to determine whether you are required to file an income tax return, it is important to carry out a personalized analysis, because each case is different.

It is very important to confirm whether or not you are required to file your return. Even if, at first glance, the general requirements above suggest that you are not required to file, there may be other circumstances you are unaware of that could include you among those required to file.

It should be remembered that filing an income tax return does not necessarily mean that tax must be paid. There are many returns where the amount payable is very low or even zero pesos, and many others produce a balance in favor. However, if you do not file when you are required to do so, in most cases it is more costly because the return must be filed with the corresponding late-filing penalty and late-payment interest.

There are less than 15 days before the deadlines begin. Individuals whose ID numbers end in 00 and 99 have until August 9.

Contact us; the first consultation is free.

If you need more information, advice or guidance, request an appointment and tell us about your case so we can review the next step.