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Post by expat15 on Aug 5, 2016 16:19:13 GMT -5
The filing deadline is nearing and the process can be complicated. I understand anyone spending 183 days in Colombia is required to report all foreign assets, bank account, real estate etc. Failure to file can be expensive. You must file online with DIAN, but first you need a "Mecanismo Digital" which requires an appointment, finger printing at a separate location. This will allow you to file online and sign digitally the Formulario 160. Appointments can be made by calling Bogota at: Cell: 031-487-8200 or Bogota 0571-487-8200. (No Medellin phone numbers) The deadline begins 1 Oct. 2016 and the penalty for non-disclosure of foregin assets can be 200% according to DIAN. DIAN offers a Step by Step informational PDF file on their site. Message from the Director of DIAN: www.elheraldo.co/economia/dian-fija-plazo-para-la-declaracion-de-activos-en-el-exterior-255434
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Post by Deleted on Aug 6, 2016 17:23:27 GMT -5
It always says colombianos, aren't there special provisions for foreigners who live in Colombia year-round?
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Post by livinginmedellin on Aug 6, 2016 18:50:46 GMT -5
This thread should be refiled under "Anything Colombia"
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Post by saltador on Aug 6, 2016 23:45:36 GMT -5
It always says colombianos, aren't there special provisions for foreigners who live in Colombia year-round? You are legally considered to be a Colombian national for tax purposes after your 183 day in Colombia in any one year period.
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Post by scumbuster on Aug 7, 2016 7:39:55 GMT -5
Yes. You dont want to work 5 months outside Colombia them move to Colombia or you will be taxed on that income. Make sure you wait till there less that 183 days left in the year.
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Post by Deleted on Aug 7, 2016 13:49:32 GMT -5
What about a retired person with a Savings account in the US but living full time in Colombia? What is he being taxed on and what is the rate, anybody knows? And what if these savings are moved into a Colombian bank, will those funds be taxed as well? And lastly if these funds are used to buy property in Colombia, it is the seller who pays a sales tax, right? The buyer pays an annual property tax and anybody knows what that is? Is it similar to the system used in the States of 1% plus a few minor local add-one's? In other words a 200 million peso property in Colombia will be taxed 2 million pesos plus yearly? And will the tax be reduced in case of a finca which is used for agricultural purposes or cattle raising?
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Post by dandl93 on Aug 7, 2016 14:33:33 GMT -5
CG Rural and Urban properties are taxed at differant rates also Estratas. Still no one can give you a true yearly property tax rate, location of property will.
Buying or selling property...Both the Buyer and seller pays sales tax with the seller paying a higher rate.
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Post by Deleted on Aug 7, 2016 15:24:13 GMT -5
Just filed my declaration with DIAN. No taxes owed, and the tax on my capital gain in 2015 was paid when I sold the property in that year.
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Post by saltador on Aug 7, 2016 18:37:13 GMT -5
One thing to keep in mind is supposedly one would never be "double-taxed" on anything, so if you're paying yearly taxes to the USA you may only have to declare or report. (As long as you don't trigger Colombian taxes in any other way.)
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Post by livinginmedellin on Aug 7, 2016 18:50:09 GMT -5
One thing to keep in mind is supposedly one would never be "double-taxed" on anything, so if you're paying yearly taxes to the USA you may only have to declare or report. (As long as you don't trigger Colombian taxes in any other way.) It depends on your situation. For example, Colombia can have a marriage tax penalty in comparison to the US. I filed with DIAN last week and had to pay some income taxes in Colombia but less than 10% of what I paid in the US. Keep in mind there is no such thing as married filing jointly in Colombia, everyone files separately. So if one spouse earns most of the income there is possibility of a “marriage tax penalty” in Colombia in comparison to the U.S. In the US you would be taxed less due to being married with a different married filing jointly tax table. While in Colombia there isn't a different "married filing jointly" tax table - everyone essentially files as single. Also deductions are different in Colombia than in the US. But you likely won't have to pay much income taxes in Colombia if you pay income taxes in the US due to the ability to subtract income taxes paid in the US from income taxes due in Colombia.. My Colombian accountant says a majority of her expat clients pay no income taxes or only a small amount of income taxes in Colombia.
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Post by scumbuster on Aug 7, 2016 18:58:39 GMT -5
saltador Colombia taxes at 33% at a fairly low USD rate. Just because you pay in the US doesn't mean you still will not have to pay in Colombia. If I worked the first 5 months in the US and moved to Colombia I would have a substantial tax even though I paid my taxes in the US. The standard deduction in the US is 20K that you dont pay tax on, but you are not exempt for that 20K in Colombia. If you earn $ in the US you want tax person in Colombia looking at the situation.
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Post by saltador on Aug 7, 2016 21:30:04 GMT -5
saltador Colombia taxes at 33% at a fairly low USD rate. Just because you pay in the US doesn't mean you still will not have to pay in Colombia. If I worked the first 5 months in the US and moved to Colombia I would have a substantial tax even though I paid my taxes in the US. The standard deduction in the US is 20K that you dont pay tax on, but you are not exempt for that 20K in Colombia. If you earn $ in the US you want tax person in Colombia looking at the situation. I guess I said supposedly when I should have said "generally", or "in most cases".
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Post by expat15 on Aug 8, 2016 8:34:20 GMT -5
Has anyone filed their formulario 160 online with DIAN?
DIAN suggests that everyone report assets in a foreign country and file if they reside in Colombia for 183 days regardless of the amount. This includes all assets, cash, real estate, etc. I'm receiving conflicting information. The penalty for non-disclosure can be 200% of your total assets according to DIAN. This is similar to the FBAR report, in reverse.
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Post by Deleted on Aug 8, 2016 8:48:32 GMT -5
Has anyone filed their formulario 160 online with DIAN? DIAN suggests that everyone report assets in a foreign country and file if they reside in Colombia for 183 days regardless of the amount. This includes all assets, cash, real estate, etc. I'm receiving conflicting information. The penalty for non-disclosure can be 200% of your total assets according to DIAN. This is similar to the FBAR report, in reverse. Find a good tax professional over here, give them the information they request, and they will give you an assessment of where you stand. If your finances aren't too complicated, preparation of a DIAN declaration will run you between 200,000 and 300,000 pesos.
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Post by expat15 on Aug 8, 2016 9:04:24 GMT -5
@vago
I agree,find a good accountant,however my accountant has never heard of formulario 160 and DIAN seems to be lacking also in the mechanics of the law...but I'm sure they will know how to apply the penalty. We were required to file Formulario 160 last year also, but due to confusion no penalty was applied.
I'm currently going on the word of the Director of DIAN and his recent warning about non-compliance. Most accounts are familiar with the annual filing by foreigners of the Formulario 210, but not Formulario 160
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Post by livinginmedellin on Aug 8, 2016 11:12:27 GMT -5
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Post by expat15 on Sept 15, 2016 10:24:09 GMT -5
If you haven't filed your Formulario 160...it's probably to late to start now. BE CAREFUL ABOUT TRANSFERRING FUNDS TO A COLOMBIAN BANK...UNLESS YOU HAVE FORM 160
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Post by expat15 on Sept 15, 2016 10:35:03 GMT -5
Dian having numerous problems with their "digital signing" of form 210 and 160.
Comments following the video are worth a review.
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Post by sedelen on Sept 16, 2016 11:04:51 GMT -5
I have read all the posts on filing taxes here, the web, and on other forums. If there is anything that I have learned, it's that it's all bogged down in controversy, conflicting information, and no one seems to be able to agree on anything, which in this case I'm talking about the tax preparer's . In addition you have continuous changes to the laws, etc. which makes it all the more of a moving target.
Luckily I fell short of that 183 day requirement for filling this year. Hopefully, by the next filing time I hope to at least have a gut feeling for where I stand on what I could possibly owe.
If at that time I don't, I will just try to satisfy good intent by winging it at worse. I'm not going to let myself get bogged down in the quagmire of gray area's where it not evidently clear one way or the other and end up paying more than I otherwise would.
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Post by elexpatriado on Sept 16, 2016 18:24:50 GMT -5
The formula 160 has been a requirement since last year. Since its so hard to complete, and not many people knew about it until recently, there are very likely tens of thousands of expats subject to "big Fines" as stated above, I wonder how they will collect? Do you think they will recall the "Bloque de Busqueda"to perform night raids? Maybe a good job for the ex FARC members to perform, as government workers, on commission? www.dian.gov.co/descargas/EscritosComunicados/2015/PyR_Activos_Exterior.pdf
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Post by expat15 on Sept 19, 2016 13:40:35 GMT -5
It would appear the bar has been lowered. Anyone having assests, bank accounts etc, of more than $1,000 is required to file the Formulario 160 or pay the penalty. Someone on this board had their funds frozen by BanColombia following a transfer from the U.S. for failure to produce the formulario 160. I'm curious about the out come. I spoke to my bank this morning...they knew nothing about Formulario 160 and the requirements to file. I also spoke to two accountants with the same answer. Filing the formulario has proven to be extremely difficult for many Colombians with assets abroad. It can only be filed "Online" with a digital signature provided by Dian. Declaración de activos en el exterior: el 8 de octubre inician vencimientos A partir del 8 de octubre y hasta el 22 de octubre del 2015 vencen los plazos para presentar la declaración de activos en el exterior, la cual deberá ser presentada por quienes posean activos en el exterior de cualquier naturaleza por montos iguales o superiores a $1000. actualicese.com/actualidad/etiqueta/formulario-160/
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Post by elexpatriado on Sept 19, 2016 21:28:55 GMT -5
It would appear the bar has been lowered. Anyone having assests, bank accounts etc, of more than $1,000 is required to file the Formulario 160 or pay the penalty. Someone on this board had their funds frozen by BanColombia following a transfer from the U.S. for failure to produce the formulario 160. I'm curious about the out come. I spoke to my bank this morning...they knew nothing about Formulario 160 and the requirements to file. I also spoke to two accountants with the same answer. Filing the formulario has proven to be extremely difficult for many Colombians with assets abroad. It can only be filed "Online" with a digital signature provided by Dian. Declaración de activos en el exterior: el 8 de octubre inician vencimientos A partir del 8 de octubre y hasta el 22 de octubre del 2015 vencen los plazos para presentar la declaración de activos en el exterior, la cual deberá ser presentada por quienes posean activos en el exterior de cualquier naturaleza por montos iguales o superiores a $1000. actualicese.com/actualidad/etiqueta/formulario-160/Well now that you informed the bank about their "Legal" requirement to make customers fill out Formulario 160 in order to withdraw funds that have been deposited from overseas, maybe they will start to enforce the law and make it a requirement for you and all expat bank customers in the future. Talk about kicking a sleeping dog..
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Post by elexpatriado on Sept 19, 2016 21:39:43 GMT -5
Latest changes to tax law implemented by DIAN:
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