Requirements for Withholding Agent: Natural person, Obligations and MORE

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The Withholding Agent Requirements are necessary to comply with articles 368 of the Law. That is, if you want to be a Withholding Agent, you must meet each of their requirements. As well as, comply with the obligations that you are required to be one of the links that contribute to the State.

So, we invite you to read our entire article and see what kind of Requirements you must meet, the obligations that you will have depending on your conditions and of course, the sanctions if you do not comply. This and much more!

Withholding Agent Requirements

The retention agents are those authorized persons by the Constitution that are in charge of rcollect existing taxes in the country. In other words, are not those who administer taxes, but they are a link to collect them. Similarly, these are rResponsible for guaranteeing the payment of tax values to Public Institutions, that is, each one of them has a set of obligations that you must comply with during the withholding of taxes.

However, these agents are supported and authorized by the Law. For this reason, the article 368 with respect to tax collection mention the following entities that meet the Requirements for Withholding Agent

:

  • Public law entities
  • Investment funds
  • Securities funds
  • Pension and retirement programs
  • Consortia
  • Organized communities
  • Temporary unions
  • Natural or legal persons
  • Organized Communities
  • Public Notaries
  • State Agencies and Dependencies

Most importantly, it is crucial that you know the Withholding Agent Requirements depending on the conditions you present. In addition, the objective of complying with each of them is to maintain control of withheld taxes and ensure the fulfillment of obligations by the Agents.

Natural person

  • Merchants with income greater than 30,000 Tax Value Units (UVT)
  • Equity recognized for a value greater than $ 994,680,000
  • They will act as retainers of payments of: Commissions, leases, dividends, interests, discounts, profits, profits, among others
  • Important! If you do not meet the above requirements, you can withhold labor payments
  • Make withholding in the case of being a natural person who is making payments associated with raffles or bets (Article 306)
  • Subsequently, it will depend on the municipality where you are if you want to apply the withholding of the Industry and Commerce Tax (ICA)

Legal person

  • Public or private institutions that comply with the provisions of articles 368
  • Retainers of commissions, fees, among others
  • Comply with the obligations stipulated in the Law

So, if you meet all the Requirements for Withholding Agent, do not hesitate to contact the public institutions that receive these taxes. Because, Remember! A business that complies with its withholdings is helping to comply with the country’s law.

Requirements for VAT Withholding Agent

On the other hand, it is known as VAT Withholding Agent to that person natural or legal who takes care of the collection of sales tax. Also, these merchants or companies must apply and withhold the tax applied to their sales corresponding to a value less than 50%.

According to the above, the tax entities They will be in charge of establishing the value of the VAT that will be applied. As well as, they will define the requirements and documents that must be met these withholding agents. Next, we will present you the Requirements for Withholding Agent on VAT:

Natural or legal person nationalized and residing in Colombia who is responsible for sales tax

  • So record less three (3) years in RUT
  • Have your registration up to date in the Unified Tax System

Value Added Tax

  • Be up to date with the compliance and payment of tax, customs and exchange obligations
  • Not having had problems due to non-compliance with payments, billing or accounting illegalities
  • Not be related to review or capacity settlements
  • Be under the set of contributors (60%) that accompany the Sectional Address regarding taxes, sales, among others
  • Avoid be in the process of reorganization or restructuring of the company

Therefore, if you wish to process the authorization request as Apeople VAT withheld you will have to carry out the following steps:

  • Request it with a letter signed by a legal representative
  • Go to the General Office of Subdirectorate of Management and Collections
  • Provide the documents that certify the level of sales of the company
  • Board of Accountants Certification
  • Wait approximately two (2) months to receive the response on the request

Certainly, during these authorization processes, some concerns. Therefore, we will take care of answer the most frequent

To finish this section, we bring you the Colombian companies that are authorized for VAT withholding:

  • Sony Corporation
  • Compunet
  • Colombia Mobile
  • Master Chemistry
  • Plastipack
  • Instrumentation
  • Makro SuperMayoristas
  • Then brothers
  • Cartagena refinery
  • To see which others are authorized, Choose here

What are your Obligations?

However, all Withholding Agents have obligations that they must comply with without exceptions according to the Articles 375 and 381. Are you a Withholding Agent and still don’t know what those obligations are? Relax here we tell you everything!

To hold back

  • You must have an account for this procedure
  • The companies that are authorized to withhold must not exceed the limits established by the articles

Obligations

  • Companies that are not subject to withholding, such as those that belong to non-contributory regimes
  • If the withholding is not fulfilled, the State has the right to demand the reimbursement of the amount not received with interest.

To declare

  • Declare monthly withholdings (In the case of having withholdings equal to zero, it should not be notified)
  • Starts when the agent starts the activities related to this process
  • Be declared in the time established in the Law

Record withholdings

  • All values ​​must be entered retained
  • Submit the consignment of withholdings with the «Withholding Model»
  • Present at authorized banks

Issue Certificates

  • Check and request the certificates to those taxpaying individuals who were applied withholding
  • You must explain the concept, rate and amount thereof

Obligations to VAT Withholding Agents

  • Request the declaration and pay the withholdings monthly
  • Issue the billing certificate under the DIAN format
  • Make the withholding that corresponds to 15% of the value corresponding to the tax
  • Keep the subaccount that reflects the withholding account up to date
  • Present the certificate of each year that reflects the withholdings applied in the two months of the year
  • Make the following accounting note to have support of the transaction carried out: Name and Surname, Date of Transaction, Description of the business and its sales, Value of the operation, Total amount of the tax withholding

Penalties for breach of obligations

Certainly, many Retaining Agents tend to defaulting on your obligations legal Therefore, the State takes the necessary measures to sanction those who have the retention authorization. If you are a Withholding Agent and you are not complying with your obligations, it is crucial that you cknow the consequences severe that you may have:

Retention

  • It will depend on the type of illegality committed during the collection of the withholdings

Sanctions

Failure to issue certificates

  • If you did not comply with the issuance of certificates under the required deadlines, you will have to pay 5% to those non-certified values
  • If you did not issue the source withholding certificates, you will be penalized for (2) years

The withholding payment was not made

  • You will receive an administrative sanction for the incompetence of the withholding declaration
  • Criminal consequences, such as imprisonment of 48 to 108 months

Own payment

  • If the withholdings were not canceled or reported, the agent must cancel them with their own money

Failure to file income tax return

  • Respond with at least 20% of your income

Do not send tax documents

  • A fine will be imposed up to 15.0000 UVT

What is a Withholding Agent?

Are those natural or legal persons who have the responsibility to pay or pay taxes on the goods acquired. To be part of the link that charges this type of taxes, it is necessary to comply with the Withholding Agent Requirements exposed in the first section. Then these requirements vary depending on conditions in which the individual or company is located.

Above all, one of the withheld taxes are those that are consigned under the total sales of a company. That is, the VAT it is one of the main withholdings used by these agents. Similarly, these Withholding Agents must comply with a requirement series to request your authorization in the Subdirectorate of Management and Collections of the Republic.

Finally, it is crucial that you bear in mind that if you want to be part of the Withholding Agents, you must comply with a series of obligations to fulfill with the provisions of the Law. However, if due to any situation it is not fulfilled the previously explained, you will suffer administrative and criminal sanctions. That’s why I we invite you to be up to date with each of your obligations, and thus avoid any inconvenience.

Be a Withholding Agent, fulfill your obligations!

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