“Regularization tax”
Continuing with our updates on the Financing Law project, this time we will summarize the main aspects of the new regularization tax that comes as a complement to income and equity taxes. Remember that the law 1739 of 2014, brought a first edition of this tax for 3 years with rates between 10% and 13%.
The characteristics of de proposed tax are:
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The chargeable event is the possession of omitted assets or non-existent liabilities as of January 1, 2019.
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Taxable base. In the case of nonexistent liabilities, the taxable base is its fiscal cost. While in the case of omitted assets, the taxpayer can choose to take as a tax base i) the fiscal cost of the goods or ii) its commercial value supported with a technical appraisal.
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If the commercial value is taken as a taxable base and the assets are repatriated during 2019, it will be reduced by 50%.
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The regularization tax rate is 13%, however, if the taxpayer repatriates and invests the assets in the country, the rate will be reduced by 50%.
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The regularization, does not generate negative consequences towards statements already presented, criminal actions or exchange sanctions.
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It is allowed to adjust the fiscal cost of the assets abroad (declared) to the commercial value, provided that the difference is included in the taxable base of the regularization tax.
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The assets subject to the regularization tax should not be included in the tax base of the wealth tax.