Tax recovery in Colombia

Tax refund management in Colombia

Through the presentation of tax declarations, companies that generate balances in favor in their declarations have the right to recover taxes and they may request balances in favor generated in Colombia. These amounts usually represent large sums and if not requested within the time established by law, the tax refund will not take place in Colombia for what that money will not be recovered. In UR Global, we deal with the tax refund management for companies in Colombia. Our extensive experience in management business and subsidiaries in Latin America support us.

DIAN balance refunds

The National Government of Colombia established the simplified procedure for tax refund in favor of the income tax, complementary and VAT through the National Directorate of Taxes and Customs (DIAN) by Decree No. 535 of 10 April 2020 during the health emergency caused by coronavirus.

When taxpayer meet the requirements, each Sectional Directorate will respond within the following 15 days after the request. The Decree 535 indicates that as long as the country continues under a state of emergency will not be necessary to attach the list of costs, expenses and deductions to make the procedure. However, when the emergency is over, these documents will have to be presented within a period not exceeding 30 days.

How can we help you?

If you want to make an inquiry about our services for business management, please fill out the inquiry form. 

In the internationalization processes, it is essential to have a consulting business to help the company to know keys and risks at the accounting, legal, labor and tax level in order to comply with all the obligations and avoid unpleasant surprises, due to ignorance and bad advice.

Who will benefit with DIAN balance refunds?

In accordance with Article 850 of the Tax Statute, taxpayers or those who settle balances in favor of their tax declarations in Colombia may request their refund before the National Directorate of Taxes and Customs (DIAN). In accordance with Article 854 of the Tax Statute, taxpayers will only be able to claim the corresponding amounts within a period not exceeding 2 years.

How do we help in UR Global to recover taxes?

In UR Global, we have experts with a wide experience in the sector and in Latin American countries, in Colombia in this case. They work hard, which implies that within a maximum of 50 working days must be processed the respective forms and legal documents, as well as to meet the DIAN requirements and its respective follow-up to achieve that tax refund in Colombia.

Why use UR Global for tax recovery in Colombia?

At local level, we have experience of almost 10 years managing refunds of different companies and easing our clients’ cash flow.

In Colombia, we manage more than 70 subsidiaries of international companies and we have many transfers from other offices annually. When reviewing accounting and taxes received, we help companies in the tax refund management before DIAN. Due to our commitment and knowledge, we have achieved very satisfactory results for our clients.

Frequently Asked Questions on tax refund in Colombia

In case of companies, the refund of credit balance will be carried out with a detailed review of submitted information and company history in order to determine if they are in a high or low risk profile.

The procedure will take place if the company complies with requirements by reflecting a rational economic activity and sustaining that refunds requested are consistent with refunds historically requested.

  • Refund within 15 days after the procedure: Taxpayers not qualified as high-risk will be authorized to compensation and/or refund through a short procedure of 15 days. This will happen the days after the refund request date submitted timely and in the proper manner.
  • There is no need to attach the list of costs, expenses and deductions: During the health emergency period, there is no need to attach the documents showing the costs, expenses and deductions. However, when the country is not in this situation, taxpayers who request them must submit that list of costs, expenses and deductions within 30 days.
  • Implementation of summary procedure: DIAN keeps its tax powers to review the refunds made and such powers will be executed after the emergency is lifted.

The Government, through the National Planning Department, has advanced the VAT refund due to the health crisis.

The Colombia’s government advanced the tax refund schedule like VAT. This measure consists in refunding resources to the lower income families, which will ease the impact of the consumption tax on products and services regarding the most vulnerable people in the country.

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