Colombia Forum

Vikingo
Joined 2009
Posts: 1695

2 years ago

Colombian income tax

2 years ago

If you live in Colombia and want to lower your income tax bracket or avoid paying it altogether here are some tips.
The keyword is 'avoiding' which is legal, 'evading' is not.
Apart from stacking up your Colombian bank account with deposits over more or less 50 million pesos annually (the amount increases slightly every year linked to minimum wage) and sending your SSA direct deposit into a Colombian bank which your bank is required to report to DIAN if it exceeds the magic 50 million number.
Remember your annual Colombian credit or debit card purchases are available to DIAN as well, so are utilities or expenses you pay with PSE or at similar institutions, PayPal maybe?
If you go shopping (Exito, Jumbo, Farabella) instead of whipping out your card use the ATM in the store or in the shopping center, which is perfectly safe.
Buying from Amazon with your Colombian card? Well, Amazon introduced the 'PayCode' system in Colombia where you can pay cash at any Western Union office using a code attached to your purchase.
But you need a PayCode account, your regular Amazon account won't work.
It begs the question though, is Western Union required to report your cash transaction to DIAN since you have to produce your cédula when paying?
Paying with your US bank card at Amazon should be safe, but for how much longer?
I tried to open a PayCode account but haven't figured out how because every time I sign on to Amazon I'll be greeted with 'Hi, Vikingo'.
Thinking about having the wife sign on, but that may be a grave mistake, the proverbial 'kid in the candy store' comes to mind.
Shopping at amazon is becoming more and more alluring considering better quality and the huge selection, not to forget free freight for over $35 total, but depending on the private seller of which are the majority at Amazon, just like at eBay.
Nevertheless, Amazon is an ideal shopping source for Colombians with the site opening in Spanish and prices in Colombian pesos, automatically with the Colombian IP address.
But you can click on English and your familiar currency. And no, I'm not invested in Amazon but I think Jeff Bezos is one hell of a business man, unlike that Iranian Frenchman who owns eBay, insisting on using that almost mandatory PayPal system.
Unfortunately I need eBay to buy computer parts, with that incredible selection and great prices.
Inviting your comments...

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