If Colombians are already adjusting their finances this year due to the steep rise in the cost of living, with a view to what will happen in 2024, this will have to be done. making extra effort due to paying higher income tax.

But this will not affect all Colombians, just earning more than 10 million pesos per month According to the Ministry of Finance, there are more than 520,000.


As every year, between August and October, Deadlines are starting to fill in for income statement submission to Dian For income, expenses and investments made in 2022.

And to fulfill this obligation, Colombians take advantage of the available facilities to keep the tax base on which this tax is calculated as low as possible. and therefore a lower value should be paid, nothing should be paid or a favorable balance should be struck.

However, since the tax reform approved in 2022 includes many important changes, in 2023 it will no longer be possible to reduce this tax base at the same rate as in previous years or even this year.

Some of the amounts that can currently be deducted from this equation are: health and retirement contributions, interest on mortgage loans and up to 50 percent of the 4×1000 tax paid during the year. There are also exempt incomes that provide the greatest opportunity for tax planning in Colombia.

It was precisely in these exempt incomes that the changes occurred.. Carlos Enrique Neira, Director of Global Mobility Services at KPMG Colombia, explains that up to 30 percent of annual income up to last year could be allocated to one person, provided that it did not exceed 136,226,000 pesos. voluntary pension fund or AFC (Savings for Construction Promotion)These are savings accounts for home purchases.

These contributions make it possible to reduce the tax base on which income tax is calculated. Moreover, 25 percent of the total value of labor payments is exempt from this taxUnless they exceed 2,880 UVT (Tax Value Units) per year, which is equivalent to 122,146,560 pesos this year.

However, As of this year, this exempt labor income cap is no longer 2,800 UVT, but 790 UVT (33,505,480 pesos).. This exempt labor income represents gross income less deductions for health and retirement benefits. The resulting figure needs to be multiplied by 25 percent and is the figure deducted from the taxable base.

As long as the residual value does not exceed 790 UVT, It is the tax that can be used to calculate the income tax payable in 2024. For income, expenses and investments made this year.


“It’s not because there are more opportunities for tax planning and what else can be done to reduce the tax base, because tax reform focused on further limiting these benefits and reducing the tax base.‘ said Carlos Enrique Neira.

One more limitation has been added to all of the above. Last year, the sum of deductions and exemptions could not exceed 40 percent of the income. one person or 5,040 UVT (213,756,480 pesos), but in 2023 this limit will be reduced to 1,340 UVT (56.832,080 pesos).

All this means that next year, when many Colombians start calculating, they will see a significant increase in the base they will have to calculate their 2022 income tax. the probability of paying more for this tribute will also increase.

KPMG calculations show people earning around 10 million pesos per monthThey can pay more rent, between 1 and 2.5 million pesos next yearPersons with a salary of 15 million pesos will pay an additional payment of approximately 3 million pesos, but every situation is different and there are many factors that affect this.

Carlos Enrique Neira assures: The best thing a person can do is talk to their tax advisor. So under the tax reform scenario, it calculates how much you withhold and how much you’re short on withholding to see what the difference might be, eliminating the higher income tax you’ll have to make next year. you are so unprepared

I also think it’s important from this year that: Colombians are saving or making provisions for 2023 because the impact will be felt in the financial sphereadvice that financial advisors are currently giving to their clients.

There’s also the possibility that it’s an employee. ask your employer to withhold you more at sourceThis is considered an advance payment of income tax.

By the way, they are stating from Dian that by the end of this year and the beginning of 2024 The socialization of all changes involved in tax reform will be strengthened so Colombians won’t be surprised that they will have to pay more in income tax or have to pay for the first time when they start making their calculations next year.


Volunteer contributions created Encouraging home purchases and increasing contributions to pension funds In exchange for a tax advantage, Colombians may be discouraged from continuing to do so, but these incentives are not currently of the same magnitude.

Therefore, voluntary retirement contributions may decrease. “Financial incentives for savings were very important to encourage voluntary savings. Although exemptions from voluntary retirement were lifted and voluntary savings persisted in compulsory retirement, reform perceived as a threat to savings‘, says Daniel Wills, vice president of technical at Asofondos.

The same can happen with savings in AFC accounts to buy your own home. Since the middle of 2022, the sector has been experiencing a serious crisis. In the first months of this year, only 75,414 new homes were sold; this figure was less than half of the 155,320 homes sold in the same period last year.

Source: Exame

Previous articleRussia ranked in the top 10 for the number of recorded DDoS attacksScience and technology03:42 | 26 August 2023
Next articleDomestic engineering structures folding “POLYPROPYLENE” drone for reconnaissance


Please enter your comment!
Please enter your name here