If you’re a business owner in Colombia, you’re likely familiar with the Impuesto de Industria y Comercio (Industry and Commerce Tax), commonly known as ICA. Every year, the government updates the Tabla de Retencion ICA, which outlines the tax rates for different types of businesses. The 2019 version of this table has been released, so it’s important to understand what it means for you.
What is the Tabla Retencion ICA?
The Tabla Retencion ICA is a chart that outlines the tax rates for different types of businesses in Colombia. The rates vary depending on the industry and the size of the company. The table is updated every year to reflect changes in the economy and other factors that may affect the tax rates.
How Does the Tabla Retencion ICA Work?
Businesses in Colombia are required to pay ICA based on their gross income for the year. The tax rate is calculated as a percentage of this income, and the percentage varies depending on the industry and size of the business. The Tabla Retencion ICA outlines these rates so that businesses can accurately calculate their tax liability.
What Are the Changes to the Tabla Retencion ICA for 2019?
The main change to the Tabla Retencion ICA for 2019 is an increase in the tax rates for companies with gross incomes of more than 1 billion pesos. The new rate for these companies is 3.5%, up from 3.2% in 2018. The rates for smaller companies and those in certain industries remain the same as last year.
Who Needs to Pay ICA?
Any business that operates in Colombia and earns income from commercial or industrial activities is required to pay ICA. This includes both domestic and foreign companies. The only exceptions are businesses that are specifically exempt from the tax by law.
What Are the Pros of Paying ICA?
Paying ICA is a legal requirement, but there are also some benefits to doing so. For one, it helps to fund local and regional governments, which can lead to improved infrastructure and services. Additionally, paying ICA can help to build trust with customers and other stakeholders, as it demonstrates a commitment to following the law and contributing to the community.
What Are Some Tips for Calculating and Paying ICA?
Here are a few tips to keep in mind when calculating and paying ICA:
- Be sure to use the most recent version of the Tabla Retencion ICA to ensure that you’re using the correct rates.
- Double-check your calculations to avoid errors that could result in overpayment or underpayment of taxes.
- Make sure to pay your taxes on time to avoid penalties.
- Consider working with a tax professional to ensure that you’re complying with all relevant laws and regulations.
FAQ
What happens if I don’t pay ICA?
If you don’t pay ICA, you may be subject to penalties and fines. Additionally, the government may take legal action to collect the taxes owed.
Will ICA rates change again in the future?
It’s likely that the Tabla Retencion ICA will be updated again in the future to reflect changes in the economy and other factors. It’s important to stay up-to-date on these changes to ensure that you’re paying the correct amount of taxes.
Can I deduct ICA from my taxes?
No, ICA is not deductible from your taxes in Colombia. It is a separate tax that must be paid in addition to other taxes.
Are there any businesses that are exempt from paying ICA?
Yes, there are some businesses that are exempt from paying ICA, such as non-profit organizations and government entities. However, most businesses are required to pay the tax.
How often do I need to pay ICA?
ICA is typically paid on a quarterly basis, although the exact schedule may vary depending on your specific circumstances.
How can I get more information about ICA?
The Colombian government’s tax agency, the DIAN, provides information and resources related to ICA on their website. You can also consult with a tax professional for more specific guidance.
Summary
Understanding the Tabla Retencion ICA is an important part of running a business in Colombia. By staying up-to-date on the latest rates and regulations, you can ensure that you’re complying with the law and contributing to your local community. Remember to double-check your calculations, pay your taxes on time, and seek professional guidance if needed.
