Are there any expats out there who complete Colombian tax declarations? If so, I would appreciate their views on something I cannot understand. My question concerns how to determine the amount of “Patrimonio Liquido” to be declared.
I have been using Tax Declaration 210 (Declaración de Renta y Complementarios Personas Naturales y Asimiladas No Obligadas a llevar Contabilidad) since 2004 with input based on guidance from registered tax accountants. This guidance does not come cheaply at last year’s fee of two million pesos for the declarations of my wife and me despite the fact my affairs could hardly be simpler.
Our Colombian patrimony for tax purposes is very simple comprising our residence in Medellin, a local bank account, a handful of local savings, and our car. All of these have very precise values and I suggest a Patrimonio figure to my tax accountant each year including the Base Gravable from my Impuesto Predial as the value of our residence. It is at this point I get lost as my tax accountant always then adds a “cushion” of “Otros Activos” to “satisfy” the DIAN. This “cushion” is a very significant sum but, much as we try, we have been unable to get a clear explanation as to what purpose it serves.
According to the several tax accountants we have used, this “cushion” is required because the real commercial value of our property is vastly superior to its “Base Gravable” and, according to them; it is advisable to preempt an eventual capital gains tax by providing for it in earlier tax declarations. I find this explanation difficult to accept as it may be many years before any sale of property and materialization of capital gains.
Does anyone have any views, or experience on this issue? Alternatively, does anyone know of any tax accountants in Medellin who are bilingual in English/Spanish? I feel much of this problem is due to language differences.
I have been using Tax Declaration 210 (Declaración de Renta y Complementarios Personas Naturales y Asimiladas No Obligadas a llevar Contabilidad) since 2004 with input based on guidance from registered tax accountants. This guidance does not come cheaply at last year’s fee of two million pesos for the declarations of my wife and me despite the fact my affairs could hardly be simpler.
Our Colombian patrimony for tax purposes is very simple comprising our residence in Medellin, a local bank account, a handful of local savings, and our car. All of these have very precise values and I suggest a Patrimonio figure to my tax accountant each year including the Base Gravable from my Impuesto Predial as the value of our residence. It is at this point I get lost as my tax accountant always then adds a “cushion” of “Otros Activos” to “satisfy” the DIAN. This “cushion” is a very significant sum but, much as we try, we have been unable to get a clear explanation as to what purpose it serves.
According to the several tax accountants we have used, this “cushion” is required because the real commercial value of our property is vastly superior to its “Base Gravable” and, according to them; it is advisable to preempt an eventual capital gains tax by providing for it in earlier tax declarations. I find this explanation difficult to accept as it may be many years before any sale of property and materialization of capital gains.
Does anyone have any views, or experience on this issue? Alternatively, does anyone know of any tax accountants in Medellin who are bilingual in English/Spanish? I feel much of this problem is due to language differences.
